Business as usual at CTIA Wireless 2009. The show floor is abound with flashy new devices, 4G infrastructure, and booth demonstrations of every possible technology and service. Much like the attendance at this year’s show (dare I say down 20%), the devices lacked any wow factor, 4G equipment looks just like 3G gear, and many of the floor demonstrations were shown at earlier shows. There is a general lull to CTIA that is analogous to the economy in general.

But, there is a budding new technology that has exploded in show space this year, each booth complete with real products and live demonstrations: femtocells. It’s true that femto isn’t exactly a new technology or concept – it’s been around for several years. What is new is the maturity of the market, evolving from ideas and lab trials to real, tangible products that actually work in the field demo. There are several takeaways from this observation: 

•          Femto vendors are all grown up. These former start-ups and base station suppliers are now driving enough real business to purchase booth space. Gone are the days of lurking at the Food Court or Starbucks outside the exhibit hall to lure strategic partners.

•          Femto technology is maturing. Femtocells are no longer a technology that’s confined to a lab. Each and every femto vendor exhibiting at CTIA had real products functioning in real time. Motorola, Alcatel Lucent, Airvana, AirWalk, Continuous Computing, Tatara Systems, Acme Packet and Ubiquisys all participated in live demos at the show.

•          The market cares about femto. Even as foot traffic was dramatically light compared to previous CTIAs, the femto booths were jam packed. And, crowds were forming without the typical gimmicks used to draw attention (i.e., Lamborghini showcasing, espresso tastings).

Femto growth opportunities are promising even though few carriers are biting. No major operator announcements around femtocells were launched during the show. Although, from private discussions with service providers, many are cautiously optimistic about the technology. Expect femto to play a major role in 4G network architectures as operators seek to drive CAPEX efficiencies, optimize in-home and in-building wireless performance, and identify new revenue opportunities inside the home and small business.

In the meantime, I predict a full-blown technology “pavillion” dedicated to femtocells at CTIA 2010.