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Vodafone New Zealand is considering new technology that provides indoor base stations for 3G mobile phone networks - which likely means cheaper calls when in coverage areas.
Vodafone's parent company and leading British phone company O2 are each separately trailing the 'femtocell' technology.
O2 is working with
NEC and Google-backed Ubiquisys, while Vodafone - the world's biggest mobile phone company - says it is carrying out technical trials in Spain with Alcatel-Lucent and Huawei.
It is this intensive Vodafone testing of the small, low-powered femtocell systems that is being monitored by New Zealand branch of the giant mobile provider.
"We're closely watching the United Kingdom trials with a view to bring them here in the near future," Vodafone's external communications manager Paul Brislen told nzherald.co.nz.
"It's impressive technology."
"We have similar things today - like in hospitals - where there are boosters set up to enhance existing signal. It's perfect for situations where a lot of coverage is needed for a lot of people."
The femtocell devices are plugged into a customer's broadband internet connection and allow users to make calls or use data services with their regular 3G mobile phones.
Calls made through the femtocell could be priced more cheaply to encourage consumers to use their mobile phones instead of their fixed line.
O2 began the initial period of testing in February and will roll the trial out to around 500 users across the country in the summer if successful. A commercial launch could then take place by early 2009.
"Our Apple iPhone is already driving unheard-of levels of mobile internet usage, and the introduction of flat-rate data tariffs is expected to increase this further," Vivek Dev, chief operating officer of Telefonica O2 Europe said.
"Both of these place huge capacity demands on our networks, and because so much of that usage is at home, femtocells coupled with DSL (broadband) could provide an alternative capacity resource."
Vodafone said it was carrying out technical trials of 3G femtocells to assess how effective the technology could be.
"Femtocells have the potential to enhance customers' 3G broadband experience, and the trials are critical to investigate whether the technology can deliver on its promise," Andy MacLeod, Global Networks Director of Vodafone, said in a statement.
In a report last year provided by NEC, ABI Research forecast the market for femtocell equipment could grow to more than $4 billion by 2012.
- REUTERS / NZ HERALD STAFF