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Femto Forum – Market Status Update

Femtocells have arrived and are shaping up into a key weapon for mobile broadband service delivery

Prof. Simon Saunders simon@femtoforum.org Chairman, Femto Forum www.femtoforum.org

The Femto Forum Ecosystem Development

Market Education

Driving open standards

Aims

• Promoting & enabling femtocells• Not-for-profit, founded in

2007• Independent, Inclusive,

International

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Operator Members

67 providers of femtocell technology 55 operators covering 1.4 billion mobile subscribers – 27% of total

Why Femtocells?• Dramatic growth in mobile broadband• Consumers increasingly sensitive to coverage for both

voice and data– especially at home and in the office• Operators need to meet this demand – but quickly and at

reduced cost-per-bit

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Explosion of internet connected devices

Exponential growth of mobile data traffic

Source: Signals Research Group

Home

Office

Out of home / office

On the move

Source: Informa

Traffic increasingly

indoors

>8

0%

in

doors

About Femtocells• Simple, low cost, easy-to-install cellular access point for homes

(& offices & metro areas)

• Delivering fast, reliable service to standard phones over licensed spectrum

• Supported in 3G and next-generation standards by 3GPP, 3GPP2, WiMAX Forum, Broadband Forum

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Technology savvy family0

1000

2000

3000

4000

918

2646

3515Starting Basic Enhanced

Benefits for Consumers and Operators Alike

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With full operator management, in existing spectrum, at reduced cost-per-bit

Consumer Service Propositions Operator Business Case

Hou

seh

old

Lif

eti

me V

alu

e

(€)

With my phone, in my home and my office

Source: Signals Research Group

288%38

3%

16.7x RoI

Femto Forum Market Status Report• Launches gathered pace in late

2009• Reflecting the accelerating market,

Femto Forum recently launched its market status report

• Available for free from www.femtoforum.org

• Four times annually• Includes:• Commercial services• Industry ecosystem• Market forecasts• Standards development• Regulatory developments

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50% increase in operator

commitments

November 2009

February 2010

The Flourishing Femtocell Ecosystem

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End to end system providers

Network Elements

Componentsand Software

Other enablers

Products

Femto Forum Femtocell Product Showcase

• 24 access point vendors, providing a wide range of consumer-friendly form factors and functions

50% growth in operator commitments in 3 months• Femtocell market undergoing rapid growth globally with

multiple deployments in Asia, North America and Europe • Operator commitment to femtocells increased by 50% in

last 3 months• 9 live commercial networks, 3 further deployment

commitments

• France’s SFR, Portugal’s OPTIMUS and China Unicom have all launched commercial services in past 3 months

• Vodafone re-launched its offering as ‘Sure Signal’ with significantly increased marketing and is realising considerable success in the UK

Rapid future growth expected • ABI Research estimates > 60 ongoing operator trials

• Further deployments expected shortly

• Significant growth reaching just under 49 million femtocell access points (FAP) in the market by 2014 and 114 million mobile users during that year Source: Informa

• Healthy growth predicted with femtocell unit sales reaching 25 million in 2014.

• Femtocell based 3G service revenue $9bn per annum by 2014 Source: Juniper Research

Fig 2. Femtocell access point and user forecasts – Jan 2010

Fig 1. Femtocell worldwide trial activity

Standards Progress

• April 2009: Release 8 provided end-to-end UMTS standard, with Broadband Forum management data model

• Release 9 will provide feature enhancements for UMTS and end-to-end LTE femtocell support

• Phase 1 cdma femtocell standard expected shortly

• Phase II features are under consideration now

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• Phase 1 expected for completion shortly• Phase II to include advanced network features

and air interface optimization

• Femto Forum is actively supporting all three activities

Regulator Progress

European Radio Spectrum Committee

Concluded that existing national regulations should support femtocells in the context of increased spectrum efficiency

Japanese Ministry Revised regulations in December 08 to be femtocell-friendly

Ofcom (UK) Proposed changes to spectrum regulation in June 09 “[Femtocell] technology …has the potential to enable new forms of competition across communications networks: fixed-mobile convergence.””

ITU-R Recognised description of “Femto Access Node” in August 08

FCC (US) Chairman stated FCC will encourage use of femtocells in October 2009

MIIT (China) Director of State Radio Regulatory Committee stated “Femtocell is worth to be adopted, and worth to be promoted greatly”

Regulation• Femto Forum regulatory white paper• Regulators recognising and acting on femtocells• Risks of hidden hurdles and slow action remain

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First Femto Forum UMTS Femtocell Plugfest

• Collaboration with European Telecommunications Standards Institute (ETSI)

• Taking place March 2010, with intensive preparatory work and staging tests in the intervening months

• Interoperability tests between femtocell network gateways, security gateways, femtocell access points and chipsets

• Verifying the Release 8 Iuh interface and associated security protocols

• Over 20 signed-up participants, including access point, gateway, chipset and software vendors of all sizes

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+

Femtocell-enabled Services

Secure home access

Virtual fridge notes

Chameleon home screen

Picture synchronisation& remote control

See w

ww

.fem

tofo

rum

.org

for m

any m

ore

exam

ple

s

• Presence, location,

context and remote access

• A bridge between the mobile and

home networks

• Unlocking content,

sharing and social

networks on your mobile

Home messaging

• Femtocell economies of scale can deliver cost-effective deployments in offices, high-traffic or low coverage locations

• Femtos in the enterprise: overlay currently, integrated in future

• Metrozone: capacity offload and rapid-response next-gen provisioning

• Cost-effective access to rural and developing markets via appropriate backhaul solutions

Macrocells – wide area coverage and mobility

Femtocells aren’t only for home

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Enterprise femtocells

Domestic femtocells

Outdoor femtocells

Femtocells in Next-Generation Systems

Performance

Business Case

Next-gen Femtocells

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Revenue impact

Time-to-market

Cost savings

Services Deployment Approaches

2010 Femto Forum PrioritiesOverall goal: Facilitating world-wide femtocell adoption amongst

operators and consumers and preparing for future evolution

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•Enabling an ecosystem for service development

Services

•Tracking market activity and responding to issues arising from deployments

Market Status

•Capturing and spreading operator best practice, value proposition and evolution options

Operator case

•Requirements, supporting standards and deployment practices

Enterprise applications

•Exploring the potential of femtocells to promote inclusive access to mobile services

Rural and developing market applications

•Encouragement of defined standards and supporting standards enhancements with 3GPP, 3GPP2, WiMAX Forum, Broadband Forum

Standards

•Enabling plugfests and broader IOT according to published standards and market requirements

Interoperability

•Business case, deployment models and technology

Next generation

•Easy and efficient routing, configuration and interworking of home networks involving femtocells

Broadband and in-home networking

•Broader international geography and ecosystem. Engaging with developers and handset manufacturers

Geography and ecosystem

Summary

• Femtocells address immediate needs• Femtocells are here now• Femtocells are growing fast• Femtocells provide a unique platform for

mobile services

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