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Google says it is leading a $25 million investment into a U.K "Femtocell" company, Ubiquisys, which is developing hardware that lets cell phones run on home WiFi networks. In other words, it helps carriers move some of their data traffic away from their own cellular network, onto a home’s local area network, or the so-called “edge.”

Here is some industry scoop from our friends at Spotwave. Femtocell technology continues to experience media hype and delay in commercial availability. In addition price is anticipated to be relatively high based on implementation costs, handset requirements and network complexity. The key issues are related to frequency planning – managing the impact on the macro network, phone compatibility, synchronization (CDMA, W-CDMA), hand-off procedures, and very importantly, backhaul (access, security). Solutions to these issues generally require system-wide changes to be made by a wireless carrier planning to use the technology which slow down the wide-scale deployment and market acceptance of these offerings. The same issues faced service solutions based on Wi-Fi enabled phones, which have been available for several years now but have not had much impact in the market.

Spotwave’s proven offerings, which always maintain carrier network integrity, are compatible with any type of phone and provide a high-performance, cost-effective and future-proof approach to the issue of improving in-building coverage for subscribers at home or at work.

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