Latest rumor out of AT&T is that the carrier has signed a deal with UK-based femtocell manufacturer ip.access for up to seven million of the company’s individual cellular base stations.  The agreement is apparently worth up to $500m in hardware, spread over five years, according to research and banking firm ThinkPanmure.  AT&T intend to sell the femtocells to individuals and businesses for as little as $100 each.

While neither the carrier nor the manufacturer would comment on the rumor, an AT&T spokesperson did confirm that they are currently running lab testing of femtocell technology and plan a trial of the system “later this year”.  Femtocells act as a bridge between a user’s standard broadband connection and the wireless network used by cellphones.  Plugged into a router, they’ve prompted great interest from carriers as a potentially straightforward way to extend network reach without costly infrastructure development.

AT&T would presumably be using ip.access’ Oyster 3G model, shown above, which would permit voice and high-speed HSDPA data use of cellphones.  Winner of the 2007 GSM Association Award for Best Radio Access Product, the femtocell supports up to four simultaneous users and up to 7.2Mbps HSDPA downlink speeds.  Most importantly, setup would be simple: the Oyster only has a single ethernet cable and a power cable to be plugged in; other configuration is automatic.

[via Engadget Mobile]