A report published by ThinkPanmure is saying that AT&T has plans to sell about seven million femtocells. The femtocells will come from ip.access Ltd., who manufacturers femtocell and picocell technology. The report says that AT&T has signed $500 million contract with ip.access, which will provide AT&T with the femtocells over the next five years.

Femtocells provide a unique service to both customers and networks. Customers can use femtocells to patch up poor coverage areas in their home or office. It also benefits network operators, by relieving stress on traditional network technologies. Femtocells broadcast a cellular signal in one’s home or office, and then use a broadband connection to provide voice and data services to near by devices. Only devices approved to be used with the femtocell by the owner are allowed. This prevents the femtocell from being used by anyone near the device.

This technology is an even greater benefit to the network operators, who also collect a monthly fee from the user for using the device. Like the phones offered by carriers, the device is sold at a loss in hopes of future profit from the subscriber during the course of their contract. Sprint was the first to bring femtocells to the market. Other carriers, such as Verizon and AT&T, had announced interest in the technology.

[Via RCR News]