AT&T is reportedly developing a set-top box for its IPTV service 'U-verse' that includes femtocell capability, extending the reach of a user's mobile phone reception, according to reports in news portal Gizmodo, quoting an unnamed AT&T employee.

The information is thought to have been spotted by the employee as a result of mooted integration between the telco's fixed-network and wireless operations. The new device is expected to emerge sometime in the next 12 months, according to the reports, and more details should be forthcoming soon.

AT&T revealed last December that it expected to pass 1mn subscribers for U-verse by the end of 2008, adding that it also expected the U-verse network to pass around 17mn living units by the end of last year.