The Cambridge, UK-based company expects to trial its femto3G with operators worldwide in the first half of 2007 and launch it in the second half. Its expected price, in the region of $200, is likely to be heavily subsidised by carriers and in any case is less than a Motorola Razr.

Ip.access, 47% owned by Motorola, developed the product in association with many of the wireless carriers to ensure it meets their requirements and the company is confident of considerable worldwide demand. Its launch coincides with growing nervousness amongst carriers such as Vodafone that their wireless-only networks will be at a disadvantage compared with those offering a fixed-mobile converged service.

The new product will give them the choice of piggy-backing on another broadband networks or take advantage of the spare capacity available and buying a network of their own. It also sees potential in selling it to resident gateway suppliers and offering it for retail sales.

The company sees femto3G as the basis for a pure-play cellular approach to enabling fixed-mobile convergence for the small business and home access markets. It says it is compatible with all existing 3G handsets so subscribers will have the benefits of high-speed data at home without the need for new dual-mode phones.

CEO Stephen Mallinson said: With the improved service quality enabled by femto3G and its low-cost architecture, ip.access is taking the lead in helping cellular operators to continue fixed-mobile substitution and accelerate 3G adoption in the residential market

The company quoted a new ABI Research study forecasting that by 2011 there will be 102 million users of femtocell products on 32 million access points worldwide. This level of demand will attract competition from start-ups and suppliers of existing wireless access products and ip.access said it was looking for OEM deals.

Ip.access has specialized in small base stations designed to be deployed inside buildings and communicate with operators’ infrastructure using broadband IP links. It already offers a picocell, which enables a mobile phone to become an extension once inside an office.

The femto3G Access Point is a small box, similar in size to a WiFi access point, that is plugged into the consumer’s broadband router.

Ip.access was spun out of TTPCommunications Plc, the handset IP developer bought by Motorola Inc for $193.5m in June. Intel Capital is also a strategic investor in the company.