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When cellcos first started deploying residential femtocells in earnest, some observers were surprised that they were charging upfront for a device which brings significant benefits to the carrier - improved indoor coverage and QoS at low cost, customer lock-in and so on. Now French cellco SFR is the first in Europe to adopt the free model which will almost certainly be the hallmark of domestic femtocells in future.

SFR knows that the benefits to carriers come with mass adoption, which will always be inhibited by any upfront charge, especially for customers whose indoor reception is tolerable, even if not strong. Japan's Softbank was the first to offer free femtos, and the fully subsidized model becomes more viable as the cost of the tiny base stations falls.

SFR will offer free femtos to all its 10m-plus 3G customers, using technology from UK-based femtocell specialist Ubiquisys. The product actually costs €49, which is refunded automatically on activation. Once installed, up to five subscribers can use the femtocell. For customers of SFR's new multi-function ADSL router, the Neufbox Evolution, the femto can convert into a USB accessory, to avoid extra cables and boxes.

"We are delighted that SFR, a major European operator, is offering free femtocells to its entire customer base. More than ever, operators are chosen for the overall quality of their service. Offering all customers a premium mobile experience is great for customers and great for business." said Chris Gilbert, CEO of Ubiquisys.

The French cellco is also close to commercial launch of software which will automatically connect users to Wi-Fi hotspots or to the 3G network, depending on availability. The Wi-Fi Auto Connect driver is in a pilot phase and will be rolled out nationwide later this year. SFR has access to nearly 4m hotspots in France.

As well as improving capacity, coverage and traffic management via femtocell and Wi-Fi investments, SFR is expanding its macro network. It expects to have three cities covered with 42Mbps HSPA+ by year end and already has 21Mbps HSPA+ in the 12 largest French metros. It is also adding extra capacity in urban centers, tourist resorts and along major railway lines, and has just won LTE spectrum in 2.6GHz.

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