A femtocell is a small, low-power cellular base station designed for home or small business use, improving indoor mobile network coverage and capacity. It connects to service providers' networks via broadband, benefits users with reduced call charges and improved coverage, and has a design capacity for multiple users. Femtocells operate on a 'hard handover' method for calls and can be classified based on connectivity and access capabilities, with a focus on ease of installation and lower maintenance compared to traditional cellular towers.