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Sprint is now selling “femtocell” boxes to its subscribers for improved cellular reception in the home.

Select Sprint customers will be able to buy Samsung Electronics Airave boxes (FAQ) - also known as femtocells - that act like tiny cellular towers that boost reception and rout cellphone traffic through the home’s DSL connection. With an Airave box, calls made at home won’t count against the available minutes, and would fall under a separate flat-rate plan.

Carriers don’t mind because traffic routed through a land line means less of a burden for the wireless network and lower operating costs.

“We believe it solves not only their home-calling needs, but it enhances and simplifies their current phone services,” said Ajit Bhatia, who heads up the development of wireless voice products for Sprint, adding, “At the macro level, it is cheaper to carry a call on the femtocell than on the national network.”

Subscribers who spend $50 on the Airave box can pay an additional monthly fee of $15 - or $30 for a family - to make unlimited calls to anyone on their cellphone at home. The fee comes on top of the regular monthly cellphone bill. Those who simply want improved coverage can just buy the box.

T-Mobile’s HotSpot @Home service also lets mobile users connect via DSL landline for flat rate service. But instead of using using cellular channels in the home, it uses WiFi. T-Mobile customers pay $9.99 a month for a single line, or $19.99 for a family plan of up to five lines.

The disadvantage of the service is the need to buy new WiFi-enabled handsets. Dual-band T-Mobile phones cost $49.99 with a two-year contract. Airave uses regular CDMA phones, compatible with any existing Sprint phone. Cellular signals are also said to be more secure and less prone to interference.

The use of Wi-Fi networks and femtocell technology reduces the need for wireless carriers to add cellular tower antennas, easing their capital expenditure requirements.

Sprint is rolling out the service in select markets in Denver and Indianapolis. The company plans to expand to Nashville, Tenn., in a month, and move to a nationwide deployment by early next year. The carrier is experimenting with the pricing model, and is toying with the idea of offering a rebate on the Airave box.

Down the line, expect other carriers to follow suit with boxes that improve cellular reception.

In related news, Devicescape Software unveiled connection software this January that allows cellphones or other appliances to connect automatically to commercial Wi-Fi networks. Devicescape supports Symbian S-60 phones, Nokia’s 770/N800 Tablet, Windows XP and Vista, as well as Mac laptops and the iTouch. At their My Devicescape Web site, you set up an account and enter any Wi-Fi hotspot and network information that you want to include.

Related Dailywireless stories include; Google Invests in Femocell Company, T-Mobile At Home, and T-Mobile UMA Goes National.

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