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SPRING 2009 5€ A UMA TODAY PUBLICATION

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UMA TUrns 3(G)3G UMA handsets, services enter the market

BLACKBErrIEs, WI-FI and UMA An interview with Mike McAndrews of RIM

Plus: Building the Perfect Femtocell

LTEDelivering Telephony Services in an LTE Network

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COnTEnTssPrInG 2009

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FEATURES

06 UMA Turns 3(G)It seems like just yesterday the 3GPP ratified the GAN specification into Release 6. In fact, it’s been three years.

12 Building the Perfect FemtocellWhat are the requirements and capabilities that make the ‘perfect’ femtocell?

16 Cover story: LTE Delivering Telephony services in an LTE network.

24 Get More ‘Fixed’ from FMCFixed-line VoIP service now a cost-effective reality for mobile providers; they are ready for the challenge.

28 Interview: BlackBerries, Wi-Fi and UMAUMA Today interviews Mike McAndrews, RIM’s VP of product marketing, about the company’s vision for UMA and Wi-Fi.

DEPARTMENTS

04 HeadlinesAnalysis of important headlines in the UMA market.

30 newslineKey product and service announcements for Q3-Q4 2008.

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SPRING 2009 UMA TODAY 01

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To download this issue and earlier issues of UMA Today Magazine, visit www.UMAToday.com.

02 UMA TODAY SPRING 2009

DOn’T LEAVE VOICE BEHInD! In the previous edition of UMA Today, I asked, “is there life beyond voice?” We focused our coverage on using UMA to provide a new range of home zone-centric data applications; however, as we move forward, we don’t want to leave voice behind.

Basic telephony service, which ostensibly is the ability for a user to make a phone call, still delivers the majority of revenues for mobile operators, yet it is in jeopardy of being left behind.

As operators look ahead, the next generation all-IP LTE access network is rapidly approaching, and some operators are talking of limited trials at the end of 2010. It’s possible to use a technology like GAN to bring today’s telephony services forward as a packet data service, rather than attempting to recreate today’s mobile voice network with IMS.

In this edition of UMA Today, we focus on bringing voice along in the migration to an LTE access network.

We also dig into the traditional fixed-mobile convergence (FMC) applications enabled by UMA (p. 24). We take a close look at T-Mobile’s highly successful fixed-line service that opens the door for mobile operators worldwide.

Since our last publication, UMA has turned 3, or 3G, that is. In late 2008, Orange announced it extended its very successful Unik service to support 3G/UMA handsets. Taking advantage of improved throughput and offload capabilities of Wi-Fi, Orange also announced support for a high definition TV (HD-TV) service based on 3G/UMA handsets.

Finally, we have two unique features in this issue. We were lucky enough to catch up with Mike McAndrews, the VP of product marketing from UMA device leader Research In Motion (RIM). In the interview on page 28, UMA Today gets to know more about RIM’s vision for UMA and Wi-Fi.

Secondly, Swedish Wi-Fi radio start-up, Nanoradio, provides insight into the significant cost and performance gains made recently for Wi-Fi in mobile devices. If their success is any indication, it’s clear that Wi-Fi will soon be a requirement for all types of handsets.

All of this leads back to my opening statement: “Don’t leave voice behind!” Whether through Wi-Fi radios, fixed-line services or even next-generation LTE networks, UMA/GAN is the platform that delivers mobile voice (and data) services over IP access networks.

Steve ShawEditor, UMA Today

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EditorialEditor-in-Chief: Steven ShawExecutive Editor: Abbe SolomonDesign Director: Collin Stone, COGNEO

AdvertisingContact UMA Today about advertising opportunities in upcoming issues at [email protected] or +1 408 546 0660.

UMA Today1601 McCarthy Blvd., Milpitas, CA 95035 +1 408 546 0660 [email protected]

© 2009 UMA Today. Every care has been taken to ensure that the data in this publication is accurate, but the publisher disclaims any liability to any party of any loss or damage caused by errors or omissions in content. This publication may be reproduced full or in part with prior written approval from the publisher.

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rIM Launches Javelin

Research In Motion (RIM), the innovator behind the wildly popular BlackBerry products, as well as a long-time supporter of UMA technology, launched its latest UMA-enabled product. It’s officially called the Curve 8900, but the code name to date has been Javelin.

A follow-on to the very successful Curve 8320, the 8900 brings a new level of efficiency and functionality to RIM’s targeted pro-sumer market. This sleek new device is the thinnest full-QWERTY BlackBerry smartphone to date. It combines quad-band EDGE support with built-in GPS, a 512 MHz next-generation processor and a 480 x 360, high-resolution display. It offers an expansive feature set, including a powerful media player and a 3.2 megapixel camera, as well as advanced phone, email, messaging, organizer and web browser applications.

John Boynton, senior vice president and CMO for Rogers Wireless, said: “...the BlackBerry Curve 8900 strikes the right balance between serious business tool and social lifeline.”

The 8900 joins the ranks of UMA-enabled BlackBerries, including the Pearl, Pearl Flip and 8800.

HDTV for Orange’s UnikThe next evolution of Orange’s convergence strategy is

here: high definition (HD) mobile TV for Unik, its UMA service. Customers in France can now access more than 60 HD mobile TV channels and can view high-quality TV content on UMA-enabled, dual-mode handsets, whether they are at home, in Orange Wi-Fi hotspots or traveling.

The service will be available on Orange’s world-leading 3G/UMA platform through a new and exclusive handset, the LG Secret KF757, as well as on Sony Ericsson’s G705u, via the Orange World portal.

“As a leader in convergence, Orange is constantly innovating to bring new services to our customers,” said Georges Penalver, Orange’s senior executive VP, Group Strategic Marketing. “Orange HDTV over 3G/UMA is the next evolution of our mobile TV service, giving customers an enhanced experience with optimal display quality, easy channel access and simplified browsing. Thanks to the quality of its network, Orange can now offer its customers faster and more efficient data access wherever they are.”

Orange’s existing Unik service currently has more than 1.3 million customers in France.

Mobile Calls Without a Phone? no Problem.For international travelers looking for a cost-effective way to make mobile calls,

Orange’s Unik PC is a new solution. That is, if you’re lucky enough to be a customer of Orange in France.

Inserting the USB key into a PC transforms it into a mobile telephone. Unik PC allows subscribers to call freely when in France or traveling abroad from any PC connected to the Internet. The service can be used over any internet connection, whether at home, a public hot spot or hotel room. Users can easily access contact lists and dial numbers from Outlook or the Internet with one click.

Calls made from a Unik PC-enabled computer to other company mobiles or any landline in mainland France are unlimited from anywhere in the world 24 hours a day/seven days a week. Other calls are deducted from the subscriber’s mobile package at the same cost as a call made when in France. This allows companies to control costs linked to mobile calls, especially those made from abroad.

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UMA Turns 3(G)


UMA/GAN technology is growing up quickly, and its innovators look on proudly as it continues to develop. It seems like just yesterday 3GPP ratified the Generic Access Network (GAN) specification into Release 6. In fact, it was three years ago. Oh, how time flies.

In the past three years, the technology has passed a number of major developmental milestones. Several key global mobile operators have made UMA the foundation of their overall fixed-mobile convergence (FMC) strategies. More than 30 UMA handsets have been introduced into the market. UMA is being used to support a number of additional FMC services, including fixed terminal adaptors and even softmobiles. The standard itself has also continued to evolve within 3GPP, adding support for 3G handsets and 3G core network interfaces.

UMA/GAn TUrns 3G Despite this tremendous progress, many in the mobile industry still think of UMA/GAN as a 2G technology. With mobile operators rapidly deploying 3G networks and pushing 3G handsets and services, this has presented a bit of a perception challenge for the UMA industry.

However, with the recent announcement from Orange about adding 3G support to its UMA deployment, as well as the announcements from Samsung, LG and Sony Ericsson about their new 3G UMA handsets, this perception issue is set to be quickly addressed.

Back in September 2008, Orange announced it had extended its industry-leading Unik service to become the world’s first UMA service to also support 3G handsets.

“With the launch of the world’s first 3G UMA service, we are making life as simple as possible for our customers, whilst helping them get more from their mobile phones,” says Georges Penalver, senior EVP of Group Strategic Marketing at Orange. “Orange was one of the first to bring the benefits of UMA technology to our customers in 2006 with the launch of our Unik service. Today, with our new 3G UMA platform, our Unik customers will be able to take advantage of 3G’s capabilities delivering exciting multimedia services, such as Orange Music, Downloads, TV and Video. We have increased the benefits of this innovative technology, delivering a simple and cost-effective solution to meet our customers’ needs. Orange is now able to extend the benefits of improved coverage, high-speed data access and the Unik home zone service to subscribers with 3G services. That’s why UMA is at the heart of our convergence strategy.”

Orange is now able to extend the benefits of improved coverage, high-speed data access and Unik home zone services to subscribers with 3G handsets.

3G UMA PHOnEs COMInG rAPIDLY Coincident with the Orange 3G UMA service announcement, Samsung, LG and Sony Ericsson all announced their first three 3G UMA handsets.

Samsung announced the P270, an extension to its successful portfolio of UMA-enabled handsets. Sony Ericsson, the latest (and last) of the major handset

vendors to support UMA, announced the G705u, a multimedia powerhouse providing cutting-edge music, video and photo capabilities, along with advanced 3G/UMA capabilities. LG’s newest offer is a 3G UMA handset called the Secret (KF 757). In addition to UMA, the LG Secret features a large 2.4” LCD FT touch screen, a 5 megapixel camera, and powerful new multimedia capabilities designed to take advantage of high-speed, low-cost broadband access.

John Delaney, research director with IDC Research, stated: “Users of such [3G/UMA] phones are taking advantage of Wi-Fi to stream and download multimedia to their phones more quickly and more cheaply than they can over cellular.”

3G sErVICEs Orange, however, is not only the first operator to support 3G UMA handsets. It is also the first to begin leveraging the true performance advantages of UMA when delivering mobile data services. In conjunction with its 3G UMA announcement, Orange announced its high-definition TV (HDTV) service for Unik handsets. With more than 60 mobile HDTV channels and an on-screen program guide, 3G Unik subscribers have access to a cutting-edge mobile TV experience when on Wi-Fi at home, the office or on the road.

According to Roaul Roverato, Orange’s executive vice president in charge of new growth businesses: “Our proximity to the customer and our understanding of their

That’s why UMA is at the heart of our convergence strategy.Georges Penalver, Senior EVP, Group Strategic Marketing, Orange

expectations means we are able to react more quickly to their changing needs. For example, in France, 40% of mobile TV usage is enjoyed at home, and this trend is growing. Over 58% of customers access video on demand (VoD) services, and 32% watch live TV when at home. By providing better handsets with bigger screens, seamless network access and exciting, high-quality content, Orange is shaping the future of mobile TV.”

The launch of Orange HDTV for Unik is the first of what is expected to be a number of UMA-based home zone services. Starting with a ‘low-cost calling’ proposition to consumers, UMA can be used to expand into high-speed data services, grow into value–added multimedia applications and culminate into a full-blown ‘connected home’ strategy. Orange continues to shape the future of UMA through innovation of its Unik service.

WI-FI – An UnLICEnsED FEMTOCELL As an alternative to UMA and Wi-Fi, some operators are investigating femtocells as a means to improve indoor 3G coverage and reduce costs. Femtocell trials abound globally, and it’s widely expected that some operators will leverage the technology to offer an alternative home zone service, especially in markets where Orange has a stronghold.

By adding 3G support to its existing UMA service, Orange is staying one step ahead of its competitors. In effect, Orange has immediately enlisted Wi-Fi access

points across France to act as ‘unlicensed’ femtocells. These Wi-Fi access points can now deliver the same benefits as 3G femtocells, but at a cheaper cost, with a larger service footprint and with no detrimental impact to their existing outdoor 3G network.

T-Mobile US, another major supporter of UMA/GAN technology, is likely to follow suit quickly with its own 3G extensions. T-Mobile is the last US operator to deploy a

3G network and is in the midst of a massive rollout. As users and markets expand, leveraging Wi-Fi and UMA to improve coverage and offload the macro network in the home and office appears to be a practice approach to overcoming 3G network limitations. UMA/GAn WILL sOOn TUrn 4G UMA/GAN is proving to be a resilient protocol capable of expanding to meet operator business, service and network needs. How long will it be before UMA turns 4(G)? The long-term evolution (LTE) and 4G chatter is growing louder (see LTE article, p.16).

In a November 2008 article in Unstrung, China Mobile Communications Corp. says it is already planning its LTE network. Bill Huang, general manager at China Mobile Research Institute, talked about the importance of supporting voice over LTE, and said UMA is an option.

“We could carry voice over UMA,” Huang said. “We will have an LTE network that supports voice -- it doesn’t matter what protocol we’ll use. We’ll use voice as the application.”

Soon we may be singing, “Happy 4G to UMA.”

Low Cost CallingDiscounted mobile

calling on Wi-Fi

Compelling DataGreat mobile web and

TV experience on Wi-Fi

HomeZone ServicesHome-triggered presenceupdates and file tranfers

DONE

Connected HomeConnected mobile phone

to services on WLAN

Time

Value

Beyond Voice: The Evolution of HZ2.0 Services in the Home

08 SPRING 2009UMA TODAY

Nanoradio´s ”Always On WiFiTM” solution is commercially launched inside the world´s first 3G UMA phone. The same solution was also recently launched in a 2.5G UMA phone. The two phones, (P250, P270) are being released by Samsung in multiple countries.

Nanoradio´s unique WiFi solution makes high speed wire-less internet access possible in all handheld electronicdevices. The highly integrated WiFi solution enables the lowest possible cost for our customers, and it fully supports both the exploding demand for Voice-over-IP, driven by the fixed - mobile convergence, as well as the digital media revolution such as mobile music downloads and IP TV.

The coming Nanoradio generation can easily add more standard blocks (BT, FM, NFC, GPS) on our connectivity platform architecture.

The combination of a highly skilled development team and world-class products has given us design wins and achieved volume sales to industry-leading manufacturers around the world!

Always On WiFi

Torshamnsgatan 39, 164 40 Kista, Sweden, Phone: +46 8 752 04 90, Fax: +46 8 752 04 91, email:[email protected], url:www.nanoradio.comSales Offices/Representatives: USA: +1 678 343 1215, Europe: +46 733 94 14 00, Japan: +81 90 9825 3960, Korea: +82 11 227 6276

Facts about NanoradioSwedish fabless wireless semiconductorWiFi Product offerings: True one chip, Combo System in Package (SiP) and SW driversLocation HQ: Kista, SwedenEmployees: +60Founded: 2004CEO & President: Tord WingrenSales offices/repr: Sweden, USA, Japan, KoreaKey investors: Nordic Venture Partners,Teknoinvest, Innovacom, Ferd Venture and IndustifondenVenture funding: $55 millionMultiple design wins: Mobile phones Tier 1

Nanoradio is in the melting pot of two ongoing convergences, Digital Media Convergence and Fixed-Mobile Convergence.

TM

Voice/Music

Data/Voice/Audio

GSM

WLAN

WLAN

WiFi SiP802.11b/g

WiFi + Bluetooth

LEAD FREE

RoHSCompliant

Pb

Always-On Wi-Fi

Market analyst firm ABI Research recently projected sales of Wi-Fi-enabled mobile phones could surpass 500 million units in 2012, more than a 10-fold increase from today’s volumes. This growth is being driven by consumer demand for high-speed data access and dual-mode handset services/applications like UMA.

Yet many in the industry remain skeptical about Wi-Fi-enabled mobile phones for a variety of reasons. The presumption of higher cost and power consumption when using Wi-Fi in handsets are two of the more common concerns. It is challenging to add a new radio to a mobile phone, where space and power are already extremely constrained. In addition, Wi-Fi is often viewed as a power-hungry technology not optimized for voice services.

However, the increased demand for Wi-Fi-enabled handsets has brought tremendous innovation to the market

and has addressed the key concerns. Companies are seizing the opportunity to deliver Wi-Fi systems optimized for the unique requirements of a mobile phone.

One company focused on overcoming the perceived power and cost hurdles for Wi-Fi in handsets is Nanoradio. The fabless semiconductor start-up based in Sweden has created, from the ground-up, a low-power, low-cost, small-package wireless LAN solution specifically for the mobile phone market.

“Nanoradio was founded with the vision of designing the lowest cost, lowest power ‘always-on’ Wi-Fi system in the market to capitalize on the tremendous opportunity in mobile phones,” said Carl Elgh, vice president of marketing for Nanoradio. “Today, our system delivers better quality and lower-power consumption than existing Bluetooth radios, and it doubles the talk/standby time of UMA-enabled

How innovative technology companies like Sweden’s Nanoradio are overcoming the power and cost barriers to make Wi-Fi prevalent in mobile phones.


devices when in Wi-Fi mode. We’ve proven that Wi-Fi can actually improve the battery efficiency of mobile phones. ”

According to Nanoradio, its NRX700/2 Wi-Fi chipset is the smallest WLAN solution in the world with a total system footprint possible in only 36mm2. The system is highly integrated with an on-chip power amplifier and power management blocks. Nanoradio is also the only company to offer WLAN chipsets with audio and Hi-Fi stereo capabilities enabling support for Wi-Fi headsets.

OFFLOADInG THE InTErnET Smartphone devices like the Apple iPhone or any of Research In Motion’s BlackBerries, with large color screens and high-end application processors, are feeding consumer demand for a mobile Internet.

To capitalize on this demand, mobile operators have begun offering unlimited flat-rate data plans. As a result, streaming applications like Pandora and YouTube, as well as data access applications like email and Google maps, are proving to be wildly popular, as well as affordable, on mobile phones.

Meanwhile, today’s networks are groaning under the weight of delivering media-rich content, and mobile operators are actively seeking technologies to reduce the impact of non-revenue generating data traffic.

Mobile industry pundit and consultant Dean Bubley identified “offload” as the buzzword for mobile operators in 2009. In a December 2008 blog post, he wrote: “My expectation is that device, OS and application vendors will also take matters into their own hands, and develop their own offload approaches. There will be a rise of smarter connection managers and APIs, that will allow the apps to pick the appropriate bearer and adjust their traffic profile to suit it. They’ll monitor congestion, latency and packet loss. They’ll actively look for their own offload channels, especially via WiFi.”

As if to prove Bubley’s point, a recent survey of the European smartphone market by research firm Canalys reported a stunning 58% of devices now ship with Wi-Fi. Thus, the majority of devices causing the influx of data traffic are already well-equipped to offload traffic to the internet.

For the mobile operator, offloading internet traffic via Wi-Fi is a win-win situation. The subscriber pays a flat rate for data service, regardless of access technology (2G/EDGE, 3G, Wi-FI), while the operator can offload traffic directly to the internet without bearing the burden on the macro network.

COMPLEMEnTInG 3G WITH WI-FI Beyond smartphones, 3G devices and the multimedia services

they enable is driving enormous demand on operators’ macro networks.

Wi-Fi is pervasive in the home and office where the majority of mobile usage occurs and is proving to be the ideal complement to 3G services. It provides a high-speed data connection similar to 3G, yet delivers in-building coverage, which can be lacking from the macro network.

Capitalizing on this opportunity, Wi-Fi (and UMA) market leader Orange/France Telecom is offering its new High Definition TV (HD-TV) service on 3G handsets equipped with UMA/Wi-Fi. Orange clearly sees potential in using in-home Wi-Fi and UMA technology to offload high-bandwidth HDTV services from the macro-outdoor network.

Nanoradio has been at the forefront of this 3G UMA/Wi-Fi trend. Its system is commercially deployed in one of the world’s first 3G/UMA handsets, the Samsung P270.

Pairing UMA/Wi-Fi with a 3G handset offers dramatic performance improvements in both power and data throughput.

First, in a UMA/Wi-Fi environment, all mobile services (voice, SMS, mobile TV, etc.) are delivered over the Wi-Fi radio such that the 3G radio can hibernate. Nanoradio’s Wi-Fi system in standby mode consumes less than 1/10 the milliwatts of power relative to a 3G radio. The result is that normal operations of a 3G/UMA phone with a Nanoradio system can offer substantial battery life improvements versus non-Wi-Fi enabled 3G phones.

Secondly, UMA/Wi-Fi can be used to improve the performance of 3G data services and coverage when indoors. The high-speed 802.11g radio delivers theoretical throughput of 54 megabits/second; certainly fast enough to support today’s mobile phone services. In addition, the use of Wi-Fi in the home provides a strong signal overcoming any macro network signal propagation issues.

EVOLVInG WI-FI In MOBILE PHOnEs The next step in Wi-Fi technology is the new 802.11n specification recently certified by the IEEE. Nanoradio foresees the 802.11n technology integrated into dual-mode phones shortly providing a 10-fold increase in data throughput and significant improvements in range and signal quality.

As a technology platform, Wi-Fi has proven to be extremely successful in adapting to requirements. Technology innovators like Nanoradio have proven that Wi-Fi can be optimized to meet the power, size and cost constraints of the mobile phone market. As demand increases, it’s clear mobile phones are poised to have “always on Wi-Fi.”


08 UMA TODAY FALL 2008

FEMTOCELLS

Building the Perfect Femtocell


The mobile world is buzzing about femtocells. The concept of a small, low-cost, customer deployable home base station that leverages a subscriber’s existing broadband connection for backhaul is an incredibly compelling proposition for mobile operators. Femtocells hold the promise of reducing churn by improving indoor coverage, saving costs by offloading the macro radio network, and generating additional revenue by offering new ‘Home Zones’ services.

However, as the initial femtocell trials are now concluding, and results are being fed back into the market, it’s clear there are a number of technical, standards, business case and regulatory challenges that still need to be addressed before femtocells can really take off in the consumer market.

There is now an opportunity to step back and consider: what are the requirements and capabilities that make the ‘perfect’ femtocell?

THE ‘PErFECT’ FEMTOCELL The perfect femtocell should meet the following

requirements:

Very Low Cost: To justify the femtocell business case, most operators are demanding vendors keep the cost of the device well below €100, and to target the €40 to €50 range. But, in a perfect world, operators would not even need to provide all subscribers with a new access point for them to receive a Home Zone service. Ideally, femtocell capability would have already been incorporated into existing home broadband routers, or subscribers would have already purchased and installed a femtocell for other reasons, like home network connectivity. Any installed base would dramatically reduce an operator’s financial and logistical burden of populating the network with new customer premise equipment (CPE), and would immediately improve the business case.

No Macro Network Interference: The macro radio network is a finely tuned mesh of cell towers designed to maximize connectivity and minimize interference. The ‘perfect’ femtocell could be added into this mix and not have any detrimental effects on the performance of the macro network. In addition, it would not cause any detrimental effects to mobile customers who are not femtocell users but come within range of a femtocell. For example, if you and your neighbor receive service from the same operator and you have a femtocell, the femtocell should not interfere with your neighbor’s handset.

Future-Proof Radio: The perfect femtocell would not have to be replaced as the macro network evolves to include new radio network technologies. Cellular radio technology is constantly evolving, and operators are continually upgrading their macro networks. In the last five to 10 years, many operators have evolved their macro networks from GSM to GSM+GPRS to GSM+EDGE to UMTS to UMTS+HSDPA to UMTS+HSD/UPA. Soon, they’ll evolve to HSPA+ and LTE. In addition, the perfect femtocell would be able to support handsets no matter what macro radio technology they used (e.g. GSM/EDGE, UMTS, HSDPA, or even HSPA+ and LTE in the future).

Predictable Indoor Coverage: The perfect femtocell would enable operators to provide a predictable wireless coverage range within a home. That coverage range shouldn’t fluctuate based on how near or far a subscriber may happen to live from a macro cell tower. For marketing reasons, it’s imperative operators are able to accurately set subscribers expectations for the service.

Access Point Mobility: People move, and the perfect femtocell would be able to move with them — no matter where in the world they may go.

Enable Local Internet Offload: One of the biggest selling points for femtocells is their ability to offload rapidly growing mobile data traffic (think iPhone) from the macro network. However, the vast majority of that data is standard Internet traffic, and not operator-specific mobile-data services. As a result, the perfect femtocell would allow mobile operators to let Internet related traffic route directly to the Internet and bypass their core data network.

Facilitate Connected Home Services: In-home networking is an important trend for consumers. Traditionally, mobile phones have been completely excluded from the ‘connected home’ because they maintained a direct cellular connection to the mobile network. The perfect femtocell would overcome this limitation and would enable mobile phones to communicate directly with other devices in the home.

Add Value to Other Consumer Electronics in the Home: The perfect femtocell would add value to other devices in the home; not just mobile handsets. It would work with any and all devices in the home or office which require wireless connectivity.

FEMTOCELLS

WHAT ABOUT WI-FI ACCEss POInTs? Now, reviewing the list above, there seems to be a technology option missing in this discussion. What about Wi-Fi access points?

However, Wi-Fi alone does not meet the requirement for a perfect femtocell, because it does nothing to improve the coverage or performance of mobile service.

But when used in conjunction with 3GPP UMA/GAN technology, the situation would seem to change. By enabling all mobile services to be extended over Wi-Fi to dual-mode handsets, the 3GPP UMA/GAN standard can effectively turn any Wi-Fi access point into a femtocell. In fact, with UMA/GAN, Wi-Fi access points can become the “new perfect” femtocells.

Let’s think about how that works:


Requirement

Very Low Cost

No Macro Interference

Future-Proof Radio

Predictable Indoor Coverage

Access Point Mobility

UMTS Femtocell

Current UMTS access point cost estimates are in the €150 to €200 range. In addition, there is no installed based of UMTS access points for an operator to leverage.

By definition, UMTS access points will have some level of interference with the macro network, as well as with the handsets of non-femtocell users. However, much hard work is underway to try to minimize the detrimental effects.

As the macro network evolves to support HSPA+ and LTE, UMTS femtocells will need upgrades. But by definition, UMTS femtocells will only be able to support UMTS handsets.

In order to mitigate interference with the macro network, the wireless cov-erage range for a UMTS femtocell will vary based on how close a subscriber lives to a macro radio tower. The closer to the tower, the smaller the effective access point range.

UMTS femtocells allow for some level of mobility. However since they use licensed spectrum, they can only operate in a territory where the operator has a license to use that spectrum.

Wi-Fi/ UMA “Femtocell”

Wi-Fi access points under €50 are readily available from many large consumer electronics vendors. In addition, almost 50% of broadband households in many countries already have a Wi-Fi access point installed.

By definition, Wi-Fi access points do NOT interfere with the macro network or with the handsets of non-“femtocell” users.

It is not necessary to upgrade a Wi-Fi “femtocell” access point as the macro network evolves to HSPA+ and even LTE. In addition, it can support handsets based on any macro radio technology: GSM, UTMS, HSPA or even LTE.

As Wi-Fi “femtocells” operate in a different spectrum range from the macro network, they provide predictable wireless coverage and don’t vary based on the proximity of a subscriber’s house to the nearest cell tower.

Wi-Fi ”femtocells” operate in unlicensed spectrum, so they can be moved and used anywhere in the world.

UMTS Femtocell

A UMTS femtocell can identify and route relevant traffic directly to the Internet, without going through an operator’s core network. However, in some countries, there may be regulations that require all traffic traveling over licensed spectrum to first be routed through a mobile operator’s core network prior to the Internet.

A UMTS femtocell can function as a proxy to enable handsets to access resources on the home network.

As the macro network evolves to support HSPA+ and LTE, UMTS femtocells will need upgrades. But by definition, UMTS femtocells will only be able to support UMTS handsets.

UMTS femtocells operate in a specific operator-licensed spectrum, so they can only support UMTS devices that also have a subscription with that mobile operator.

Wi-Fi/ UMA “Femtocell”

With Wi-Fi “femtocells,” handsets can route Internet-related traffic directly to the Internet, and not back through an operator’s core network.

A Wi-Fi “femtocell” enables handsets to directly access resources on the home network.

It is not necessary to upgrade a Wi-Fi “femtocell” access point as the macro network evolves to HSPA+ and even LTE. In addition, it can support handsets based on any macro radio technology: GSM, UTMS, HSPA or even LTE.

Wi-Fi “femtocells” are standard Wi-Fi access points and can be used by any Wi-Fi-equipped devices in the home for network connectivity.

WHAT’s PErFECT?So, will the ‘perfect’ femtocell at the right price with the

right features appear anytime soon? Are Wi-Fi access points with UMA/GAN technology actually a ‘perfect’ femtocell already available and widely used around the world?

There is certainly a lot of debate from vendors and operators alike. Regardless of the technology choice, it’s clear that delivering a home zone service is a priority for mobile operators. The ‘perfect’ solution is poised to capitalize on this pent-up demand. It’s clear that there are many elements to developing the `perfect’ femtocell. These elements all contribute to meeting the operator’s requirements to deliver on the promise of femtocells, improving in-building performance, offloading the macro-network, and supporting a Home Zone service offer.

So, will the `perfect’ femtocell at the right price with the right features appear anytime soon? Clearly there is tremendous industry investment from the femtocell ecosystem of femtocell vendors to meet the `perfect’ femtocell requirements.

Are Wi-Fi access points with UMA/GAN technology actually a `perfect’ femtocell already? Wi-Fi and UMA/GAN certainly meet the requirements and is widely used around the world today. As more UMA-enabled, dual-mode phones enter the market, Wi-Fi is poised to play a critical role in helping the mobile operator own the home.

Regardless of the technology choice, it’s clear that delivering a home zone service is a priority for mobile operators. The `perfect’ solution is poised to capitalize on this pent-up demand.

Requirement

Internet Offload

Enabled Connected Home Services

Future-Proof Radio

Provide Value to Other Devices in the Home



Delivering Telephony services in an LTE network

COVER STORY


LTE: A KEY nEXT sTEP In MOBILE nETWOrK EVOLUTIOn The next-generation, all-IP access network is on the minds of all mobile industry leaders. Deployment of a Long Term Evolution (LTE) access network has quickly emerged as an important next step in mobile network evolution. With very high data transfer rates and exceptionally low latency, LTE promises to provide users with a true mobile broadband experience.

At the same time, the tremendous success of 3G/HSPA data solutions over the past year has demonstrated strong consumer demand for mobile Internet access services. The GSM Association (GSMA) recently reported that 3G data has become the fastest growing broadband service in the world, with millions of new subscriptions monthly. As LTE enables operators to offer an even higher performance mobile broadband service at a significantly lower cost structure than their 3G/HSPA networks, they are looking to leverage the technology to capitalize on this proven consumer demand for a true ‘mobile Internet.’

To meet this demand, a number of major mobile operators are now targeting LTE market trials as early as the second half of 2009. ABI Research Analyst Nadine Manjaro was recently quoted saying “some operators may choose to bypass 3G and move directly to LTE, putting increased pressure on equipment vendors to meet accelerated timelines.”

THE OPErATOr IMPErATIVE: VOICE OVEr LTE As mobile operators plan for this next generation of mobile Internet, they are keen to avoid mistakes made by many fixed-line operators. The deployment of high-speed broadband networks left many fixed operators delivering a ‘dumb pipe,’ ideal for ‘over-the-top’ service delivery. Alternative service providers were able to quickly flourish by delivering voice over the top of fixed broadband networks, because the fixed operators themselves were slow to bring out their own competitive VoIP offers.

The mantra for mobile operators is to be ‘smart-pipe’ providers. This approach acknowledges consumer demand for a mobile broadband pipe providing straight forward Internet access. But rather than leaving it solely to over-the-top competitors to deliver voice services over these pipes, there is an imperative for mobile operators to seamlessly weave their own voice services into the broadband connection. Consumers can, and likely will, still subscribe to alternative VoIP providers, but a mobile operator’s goal should be to put their own voice service front and center.

Adding the operator’s telephony service to an LTE deployment from day one has another benefit. Revenue from a broadband ‘pipe’ is flat rate and declining. Mobile broadband services in the UK, for example, have been struck by a price war which effectively halved the price of monthly service in less than 12 months. Layering in telephony to an LTE service from the beginning enables operators to increase ARPU (average revenue per user) with voice. In turn, the return on investment (ROI) for LTE will be shorter.

Interestingly, there is also a very real negative element to not supplying voice with LTE. LTE was architected from the beginning to support VoIP services. The absence of an operator’s own voice service will encourage alternative VoIP providers to fill the void. An LTE network without a bundled core telephony service is an invitation to VoIP competitors.


calling on Wi-Fi

Compelling DataGreat mobile web and

TV experience on Wi-Fi

HomeZone ServicesHome-triggered presenceupdates and file tranfers

DONE


to services on WLAN

Time

Value

COVER STORY


THE CHALLEnGE: CHAnGEs In THE IMs MArKET Until recently, it had been presumed that most operator services delivered over LTE, including mainstream telephony services, would be IMS-based. When LTE standardization efforts began several years ago, it was assumed that most mobile operators would be well progressed in their IMS deployments by the time LTE became a commercial reality.

In this presumed approach, an operator would continue to leverage their existing circuit-based core voice networks to service subscribers when connected to the operators 2G/GSM or 3G/UMTS access network. However, to service subscribers when connected to LTE, the operator would leverage a new IMS-based core network, upon which all of their current services would have been replicated (Figure 1).

However, several key trends in the communications market have emerged over the last several years that have caused significant changes in the IMS deployment plans of many mobile operators. For example, with the success of Internet-based search, commerce, music and Web 2.0 services, some operators are now rethinking their overall mobile data service strategy. Rather than putting effort into conceptualizing, developing and delivering their own mobile data services, many operators are now focusing

on doing a better job at working with, and mobilizing, successful Internet-based services.

The success of Release 4 soft-switch MSCs is also having an impact on operator IMS plans. These new voice switches are providing all the feature richness of legacy MSCs, while providing the capital and operational cost advantages of all-IP systems. Still in the early stages of deployment, these systems face many years of depreciation. And unlike

moving to an IMS-based telephony core network, softMSCs enable operators to continue to leverage all their existing (and expansive) operational support systems (billing, provisioning, services, customer care…).

As a result of these trends, the market is now starting to see several categories of mobile operators emerge when it comes to IMS. For some, the plan of record remains an eventual migration of all services to an IMS-based core network, albeit more slowly than originally anticipated. However, for a growing number of other operators, while they may still plan to deploy IMS, they are looking to focus those efforts on the introduction of new services rather than the recreation of existing services (e.g. telephony) in the IMS domain. The IMS Rich Communication Suite (RCS) effort within the GSMA is a good example of this new focus (see sidebar, p. 20).

Circuit Services

Pres. Share

WAP MMSVMSSMSTel.

...Tel. SMS VMS

IMS

Packet Services

GERAN UTRAN

Replicate basic telephony services in IMS domain for devices connected via LTE?

BSC RNC RNC

LTE

EPC

ICS/VCC

Figure 1: Some operators are questioning the need to recreate core telephony services in IMS

THE sOLUTIOn: THE 3GPP GAn sTAnDArD As a result of these changes in the IMS market, a number of operators are now looking for an alternative approach for delivering their mainstream voice services out over LTE.

These operators are keen to identify a method for voice service delivery over LTE that enables them to leverage their proven, installed voice core networks. The concept is to ‘elevate’ an operator’s existing core voice network to act as a packet service delivered over the LTE access network. Rather than attempting to recreate core telephony services in IMS, simply make the existing telephony infrastructure a packet service delivered over IP via LTE. The existing 3GPP Generic Access Network (GAN) standard has quickly emerged as a favored approach for realizing this concept (Figure 2).

The 3GPP GAN standard, also commonly referred to as the UMA standard, is the technology behind a number of ‘home zone’ services deployed by leading operators worldwide. The premise behind GAN has always been to extend existing mobile services over any generic broadband access network. Originally applied to fixed broadband networks like DSL and cable, it quickly became clear that GAN also applies directly to mobile broadband networks, such as LTE.

The UMA/GAN standard, initially introduced in 3GPP Release 6, has been vetted and proven in commercial

deployments worldwide with millions of subscribers today. The GAN specification was extended in Release 8 in 2008 to also include support for 3G core network interfaces (Iu), in addition to 2G (A/Gb) interfaces. Leveraging the 3GPP GAN standard as the basis for voice service delivery over LTE has a number of advantages:

Investment protectionClearly, basing LTE telephony services on an existing (expansive) voice core network protects a substantial capital investment..

Proven service coreThe existing, expanding and evolving voice core network is a proven, reliable resource at the heart of mobile networks worldwide.

Low-operational disruptionExpansive operation support systems (OSS) and business support systems (BSS) have been developed and integrated with the existing voice core network. These network services can be extended to the LTE environment

3GPP standards-based deliveryThe 3GPP GAN standard has proven an effective and robust method for extending mobile voice services over broadband packet access networks. With only minor modifications, the existing GAN standard can be used to deliver voice over LTE today.


calling on Wi-Fi

Compelling DataGreat mobile web andTV experience on Wi-Fi

HomeZone ServicesHome-triggered presence

updates and file tranfers

DONE


to services on WLAN

Time

Value

Circuit Services

Pres. Share

WAP MMS

VMSSMSTel. ...

IMS

Packet Services

GERAN UTRAN

Enables operators to leverage growing investment in low-cost R4 voice core

BSC RNC RNC

A/lu -CS

GANC

LTE

EPC

1

Enables operators to focus IMS investment on new RSC-type service

2

Enables operators to bring telephony revenues sooner to LTE investment

3

Figure 2: Using GAN to elevate the existing voice service network to be a packet service on LTE

Minimal impact to handset manufacturersA key lesson learned from 3G network deployments was the importance of encouraging early handset development. With 3G networks deployed, operators waited years for viable handsets to begin loading networks. Any confusion over the telephony client will undoubtedly delay the availability of LTE devices. Defining LTE voice to be identical to the existing voice services of the 3G and 2G networks immediately de-risks a large portion of the handset development.

Supported by all major handset vendorsToday every major handset manufacturer, including Nokia, Samsung, LGE, Sony-Ericsson, RIM, Motorola and HTC, has developed GAN handsets. This too aids in de-risking LTE device development

These considerations have made GAN the leading approach for delivering telephony services over LTE.

3GPP UMA/GAn: A LOnG-TErM sOLUTIOn Considering the overall transition to a full LTE environment, UMA/GAN offers a long-term telephony strategy. It is clear that any LTE telephony service or handset must support the 2G/3G as a fall back for service delivery. The use of GAN for telephony simply reuses the existing telephony client which is already required to be present in any LTE handset.

Even in a full IMS telephony deployment, the 2G/3G telephony client will be present in the handset. Similar to the RCS model today, operators can invest in IMS for non-telephony services while continuing to leverage their existing 2G/3G telephony networks for LTE with GAN.

An operator specifying voice over LTE has a fundamental requirement to provide the same service experience – capabilities, functions and quality – which are supported in today’s mobile networks. The existing R4 MCS service core offers a natural platform for delivering these services. The implication is that mobile networks will support 2G/3G telephony services for many years to come.

COnCLUsIOn Operators around the world are looking to accelerate LTE deployments. Rather than delivering an undifferentiated broadband connection, many of these operators are focused on being ‘smart pipe’ providers by weaving their existing telephony services into the offer.

Leveraging the 3GPP GAN standard to extend voice services from an existing core voice network over LTE offers the fastest, lowest risk path to LTE telephony. For all operators grappling with approaches for delivering voice over LTE, GAN provides long-term investment protection, as well as short-term service acceleration designed to deliver profitable telephony services today.

Even for those mobile operators looking to eventually migrate all services, including mobile telephony, to IMS, the GAN-based approach offers a good mid-term solution for voice over LTE.

Voice-over-LTE and the Rich Communications Suite (RCS)

To help facilitate IMS deployment, a number of operators and vendors are now working on the IMS Rich Communications Suite (RCS) specification. IMS RCS is a well-defined set of IMS-based services, consisting of three new applications (presence, instant messaging and active directory) all tied into basic telephony.

RCS, like IMS in general, is envi-sioned to be access-network indepen-dent, meaning it has been defined to work over today’s 3G network, as well as LTE.

Pragmatically, RCS in a 3G network relies on the existing voice service core network and transport to deliver telephony, while adding new multimedia services over the packet access network.

Ironically, this serves as a model for GAN telephony over LTE: leverage the existing and proven 2G/3G telephony network while adding new applications as packet services.

This model also extends the RCS vision seamlessly into LTE with a GAN-based telephony service. As GAN enables operators to continue leveraging their existing core voice network over LTE, the RCS service continues to function in the same manner as it is transitioned into LTE versus a 3G access. The telephony component of the RCS service remains off the existing voice core, while the new aspects of the RCS services are derived off of the IMS core, mirroring how the service is delivered over the 3G access network.

UMA Innovation Awards 2009Recognizing Leadership in the UMA Market

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Companies and individuals awarded in the following categories:

Best Handset - 3G PhoneBest Handset - Feature PhoneBest Handset - Smart PhoneBest Handset PortfolioBest Handset PlatformBest CPEInnovator’s Award

Winners announced at a ceremony on the Orange stand on February 17th, during Mobile World Congress 2009.

For a full list of winners and more information about the UMA Innovation Awards, visit:

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Making the call:How users will access telephony services over LTE (with GAn)

With operators looking to early long-term evolution (LTE) deployments in the second half of 2010, it is important to consider a potential timeline for adding telephony services to the network. The schedule will be dictated by the types of devices available to access the LTE network.

One thing is certain, the operators aggressive with LTE view telephony as a ‘must have’ service available from day one. Therefore, these operators are considering different classes of LTE devices, each capable of supporting GAN for voice-over-LTE today.

Circuit ServicesVMSSMSTel.

Packet Services

RNC

LTE

EPC

RNC

Internet

LTE MID or UMPC with GAN-enabled Telephony,

SMS and “Click to Call” services

LTE Broadband Routerwith GAN-enabled Terminal Adaptor

LTE Data Cardwith GAN-enabled “Click to Call”

and Softmobile Application

LTE Handsetwith GAN-enabled

Telephony and SMS services

GANC

Figure 1: Embed primary revenue generating voice service into LTE-enabled consumer electronics

SPRING 2009 23UMA TODAY

LTE LAPTOP UsB MODEM An LTE ‘dongle,’ or USB modem, is likely to be the first option provided for consumers of LTE network services. The dongle is a well-known tool for delivering a mobile broadband services USB Modem.

With today’s 3G dongle services, mobile operators don’t typically provide their own branded VoIP service; thus, consumers have a high-speed IP network that invites VoIP competitors.

Before UMA/GAN, mobile operators wanting to deploy a VoIP client would need to invest in a costly and isolated VoIP switch. But today, it is possible to use UMA/GAN technology to provide a softmobile VoIP client, which derives service from the existing mobile voice core.

This softmobile client presents the subscriber’s own mobile service as an application running on the laptop.

Orange recently launched Unik PC in France, which is a perfect example of this service. The softmobile application resides on a USB key and is a self-contained application that runs on the subscriber’s laptop.

For LTE, it makes sense to bundle a softmobile client into the LTE dongle to deliver integrated broadband and telephony services to users from the start.

LTE BrOADBAnD rOUTEr LTE can be used as a replacement technology for today’s fixed-line broadband connections into the home. With an LTE wide area network (WAN) connection, an LTE broadband router needs local area connections to deliver services to the consumer in the home. Clearly, a basic router and fixed-line hub is required. But given T-Mobile’s extremely successful fixed-line VoIP service, @Home (see Fixed FMC, p. 24), mobile operators must consider adding an RJ-11 port to deliver an integrated home phone service. The fixed-line service is delivered via a GAN client in the broadband router and provides dial-tone in the home, thus enabling the mobile operator to deliver broadband data, as well as fixed and mobile voice service through a single, branded LTE broadband router.

LTE MIDs (Mobile internet Devices) Operators are envisioning a new class of devices that will enable them to capitalize on the LTE network -- mobile internet devices (MID). MIDs are a cross between a mobile phone and laptop, specifically designed to deliver a media-rich mobile Internet experience beyond what a traditional handset can support, but without the overhead of a laptop. The MID would have an embedded LTE radio and be provided as part of a mobile broadband service.

Early Internet tablets, like the Nokia 770, proved the feasibility of the MID concept. Users bought the 770, which had only a Wi-Fi connection, to provide easy, instant access to the Internet. It became a platform for many VoIP client software packages.

Therefore, LTE MIDs will likely learn from this experience and provide an embedded (or downloadable) softmobile client. Using the same UMA/GAN-based softmobile client, operators can embed telephony directly into an LTE MID as part of a technology launch.

LTE HAnDsETs Handset manufacturers will develop LTE devices only when there is a clear mandate for telephony from operators. Any hesitation, confusion or delay in telephony or the approach for delivering telephony will serve to delay the handset market.

For the major device manufacturers, leveraging the existing R4 service components for telephony and utilizing the UMA/GAN engine for packetizing traffic over LTE is relatively straightforward. This approach relies on software elements already proven in the field. The effect of standardizing on GAN for voice over LTE is to de-risk the development of LTE devices and enable manufacturers to focus on the complexities of a newradio resource.

Accelerating the migration of voice minutes in the home from the fixed network to the mobile network (known as fixed-mobile substitution, or FMS) is an opportunity for mobile operators to generate more revenue and growth.

In the US, incumbent fixed-line providers are losing fixed-line and home-phone services at an alarming (if you’re one of them) rate. A recent Morgan Stanley report indicated that the fixed-line loss at the largest US incumbents (Verizon, AT&T, Qwest, Embarq) was 7.7% in Q1 2008 alone.

There were two reasons cited for the loss in business. One was the migration of fixed service to mobile operators. Clearly, FMS is an opportunity where mobile providers are successful.

The second reason subscribers say they are dropping their incumbent fixed-line service, according to the Morgan Stanley report, is to migrate to a lower-cost VoIP service provider. US cable companies were the biggest winners in this market, taking in 5.5 million new fixed-line VoIP subscribers in the last year.

It’s clear the market for fixed-line service isn’t going away any time soon. Consumers like a dedicated home phone number. Plus many consumers prefer the ergonomic advantages of larger cordless phones, along with the convenience of having phones in multiple rooms throughout the house.

Previously, mobile operators had largely been shut out of the market for providing fixed-line services. But new

TERMINAL ADAPTORS

Get More ‘Fixed’ From FMC



UMA/GAN technology has made fixed-line VoIP service a cost-effective reality for mobile providers. And mobile operators are ready for the challenge.

T-MOBILE GOEs FIXED In July 2008, T-Mobile US formally unveiled its newest fixed-line service offer, “@Home.” It provides subscribers with unlimited calling from a fixed-line home phone for just $10/month. The service is equivalent to adding a second line to an existing T-Mobile subscription, yet it connects directly into subscribers’ existing home phone systems. Subscribers must have an existing T-Mobile GSM subscription of at least $40/month to add @Home to their service plans.

“We found that a lot of families don’t want to get rid of their home phone,” said Britt Wehrman, director of product development at T-Mobile. The @Home service was trialed for several months in Dallas and Seattle before the nationwide launch. At the end of the trial, T-Mobile reported that an incredible 97% of users opted to keep the service.

The competition for home phone service is fierce, and prices are coming down. It is estimated that the average fixed-line phone bill from a US incumbent operator is $65/month. Comcast, the nation’s largest cable operator, provides an unlimited fixed-line voice service for $40/month. Vonage, the nation’s largest independent VoIP provider, delivers a similar offer for $25/month. And now T-Mobile, the nation’s fourth largest mobile operator, has undercut the entire market and set the bar at a low $10/month.

UMA/GAn PrOVIDEs MOBILE OPEr-ATOrs WITH MOrE OPPOrTUnITIEs The 3GPP UMA/GAN standard is at the heart of a mobile operator’s fixed-line VoIP service. With a UMA/GAN network infrastructure, mobile operators can extend existing services to deliver a number of compelling fixed-mobile convergence (FMC) services, including dual-mode handsets, femtocells and fixed-line VoIP services, over fixed broadband networks.

T-Mobile is using its UMA infrastructure wisely. The company’s @Home service relies on a UMA-enabled terminal adaptor to bridge the broadband and home phone networks. The initial @Home offer included the Linksys WRTU-54G, a complete home router, Wi-Fi access point with two RJ-11 analog telephone ports to which the consumer’s existing corded and cordless telephones are connected.

In November 2008, T-Mobile added a stripped-down version of the WRTU called the Linksys UTA200-TM. It is a stand-alone terminal adaptor with no IP routing or Wi-Fi capabilities. The UTA200-TM has a single RJ-11 telephone jack and is designed to be added to an existing home network.

UMA-based terminal adaptors enable mobile operators to leverage their existing low-cost, feature-rich R99 or R4 core networks to deliver a fixed-line voice service.

PUTTInG MOrE FIXED InTO FIXED-MOBILE COnVErGEnCE For a mobile operator, offering a fixed-line home phone service is similar to offering a mobile subscriber a second line. Thus a fixed-line service can be positioned as a logical extension to a subscriber’s existing`family plan.’

One key advantage of using UMA/GAN to provide fixed-line home phone service is that the mobile operator simply uses the existing mobile voice core infrastructure (MSCs) to deliver the service. Before the use of UMA, mobile operators wanting to deliver fixed-line service were forced to buy and install a new, stand-alone VoIP switch which was completely independent of the rest of the mobile network.

A second advantage is the fixed and mobile numbers are homed from the same MSC. With both lines on the same voice switch, there are a number of fixed-mobile service integration possibilities. Operators can offer a single voicemail box for fixed and mobile lines. Or with a little development, the service can detect when the subscriber is at home and provide simultaneous ringing on fixed and mobile phones, adding a new level of convenience to mobile service in the home.

T-Mobile’s home phone service will likely generate more than $60m in top-line revenue next year...


FrEE MOnEY FOr MOBILE OPErATOrs Mobile operators are tapping into home phone service because it is a completely new revenue opportunity. There is no overlap with existing mobile service; it’s a pure product extension that can be sold to an existing subscriber base, as well as potential new customers.

For T-Mobile, the results are impressive. Independent industry analysts predict that T-Mobile will sell nearly 500,000 @Home subscriptions in the first six months of service. With a monthly rate of $10, the service will likely generate more than $60 million in top-line revenue next year.

In addition, subscriber acquisition costs are minimal. The target customers are existing T-Mobile subscribers. This is a service extension promoted in store locations and online with little need for broad consumer advertising.

For T-Mobile, an operator with mobile as its primary service, it is critical to add new products and services for its subscriber base. Consumers with a single service from an operator are more likely to churn than those with multiple services. By delivering a fixed-line home phone service, T-Mobile can create a stronger relationship with its customer base and develop customer goodwill. A valuable home phone service with branded equipment in the home creates a tighter bond with the subscriber.

Customer premise equipment (CPE) is required to bridge the service from the broadband network to the home phone system. These products are known as Analog Terminal Adaptors, and there are models from consumer electronics giant Linksys/Cisco, as well as broadband specialist Westell.

To further drive customer pick-up of @Home, T-Mobile subsidized the cost of the CPE in return for a one or two-year subscriber service commitment. This is the same strategy many operators use when selling handsets and having customers commit to service agreements.

COnCLUsIOn Customers looking to streamline their phone services and maximize their benefits recognize this as a win-win service offer. Getting a home phone for the cost of a second mobile line is a good deal. For operators, offering a home phone service reduces churn, increases ARPU (average revenue per user) and sets the stage for a range of new FMC services. It seems like fixed is the new mobile.

Linksys WRTU-54G

UMA-EnABLEDTErMInAL ADAPTOrs

Linksys UTA200 - TM

Westell’s UltraVoice UMATerminal Adapter

Westell’s UltraVoice UMA Terminal Adapter

Join the Fixed/Mobile Convergence movement.

Westell’s UltraVoice UMA Terminal Adapter enables mobile service providers to increase subscriber revenue and win new customers with trusted fixed-line phone service; offering subscribers a complete suite of voice services under a single billing plan.

For more information visit www.westell.com.

• Delivers reliable high-performance voice services in the home over fixed broadband connections

• Offers fast, simple setup with no user configuration required

• Assures Quality of Service for carrier-grade voice quality

Freedom of voice... mobile and fixed

Westell’s UltraVoice UMATerminal Adapter

Westell’s UltraVoice UMA Terminal Adapter

Join the Fixed/Mobile Convergence movement.

Westell’s UltraVoice UMA Terminal Adapter enables mobile service providers to increase subscriber revenue and win new customers with trusted fixed-line phone service; offering subscribers a complete suite of voice services under a single billing plan.

For more information visit www.westell.com.

• Delivers reliable high-performance voice services in the home over fixed broadband connections

• Offers fast, simple setup with no user configuration required

• Assures Quality of Service for carrier-grade voice quality

Freedom of voice... mobile and fixed

Research In Motion (RIM), maker of iconic BlackBerry smartphones, is a true innovator and visionary in the mobile industry. An early UMA supporter, the company has maintained a long-term commitment to the technology. Today, RIM supports UMA in a wide range of its industry-leading products, from the consumer oriented BlackBerry Pearl Flip smartphone to the BlackBerry Curve smartphone.

UMA Today caught up with Mike McAndrews, RIM’s VP of product marketing, to learn more about how Wi-Fi and UMA technology fit into the company’s future vision.

UMA Today: Thank you for taking the time to talk with us, Mike. rIM was an early pioneer using Wi-Fi in handsets, even when Wi-Fi was considered by some to be a threat to the mobile operator. What opportunity did rIM see?

McAndrews: Several years ago, as we evaluated the possibility of including Wi-Fi in BlackBerry handsets, we realized that the big opportunity was to focus on offerings that provided benefits not only to end users but also to wireless carriers.

A great example is how Wi-Fi extends the carrier’s wireless footprint to cover a lot of tough-to-reach locations like the basement in your home, or the interior of your sprawling office complex. This is win-win because the customer gets to enjoy their BlackBerry services, like email and web browsing, in more locations without the carrier needing to add more towers to its mobile network.

Wi-Fi also provides users with faster data speeds, which comes in handy for applications like web browsing and file attachment downloads. The carrier also benefits since Wi-Fi helps offload some portion of data traffic from their mobile network, thereby allowing the carrier to add more users without a corresponding increase in infrastructure spending.

UMA Today: Have operators’ opinions towards Wi-Fi changed?

McAndrews: I’ve seen a definite trend in the last few years towards Wi-Fi adoption by many wireless carriers around the world. This trend is fueled by 3 things: 1) Wi-Fi popularity with end users, 2) Increasing smartphone functionality, which leads to greater wireless data usage, and 3) Many carriers now see Wi-Fi as an enabler to their overall strategy. As a result, Wi-Fi is being increasingly requested by wireless carriers in new BlackBerry smartphones.

Many of our carrier partners have used Wi-Fi to create differentiated wireless offerings to the market. Some of our carriers have created compelling voice service plans built around UMA. Other carriers have focused on

BlackBerries, Wi-Fi and UMA

INTERVIEW

Mike McAndrews

VP of Product Marketing

Those operators that have embraced UMA are reaping the economic benefits, and we expect to see adoption and support for the technology continue.


bundling convenient hotspot access as part of a BlackBerry service plan.

UMA Today: How does UMA technology fit into rIM’s strategy?

McAndrews: UMA is a natural extension of what we’ve been doing with Wi-Fi. While Wi-Fi support makes it possible for customers to access their BlackBerry data, the addition of UMA support gives customers access to voice calling over Wi-Fi as well.

UMA is a technology that benefits both mobile operators and end users alike, and we’re glad to support it. To date, we’ve seen enthusiastic support for UMA from some of our carrier partners, including Rogers Wireless, T-Mobile US and Orange.

UMA Today: One of the criticisms of UMA is that it’s only supported by a handful of operators. Do you have an opinion on why more operators don’t support it?

McAndrews: UMA is a relatively new technology, all things considered, and some carriers are evaluating the pros/cons of UMA vs. femtocells.

UMA Today: Interesting that you should bring up femtocells. From the handset perspective, I suspect rIM is neutral. What is your opinion of them?

McAndrews: RIM handsets support both UMA and femtocells. UMA is a proven approach that has already been successfully deployed in large commercial roll-outs. While femtocells can be used on non-Wi-Fi-enabled mobile handsets, there are still some technology challenges.

In any event, we don’t see Wi-Fi going away from mobile handsets – on the contrary, Wi-Fi has become a key feature that many customers look for when purchasing a smartphone.

UMA Today: nice lead in to my next question. What is rIM’s outlook for Wi-Fi and UMA in handsets in the future?

McAndrews: Wi-Fi is an important part of our product roadmap – it’s proven to be a technology that benefits both our carrier partners and end users. Wi-Fi is popular with both business users and consumers. While Wi-Fi cannot

replace the wide area coverage provided by a mobile network, it is becoming more commonplace in homes, hotels, airports, coffee shops, universities and businesses. RIM currently has seven BlackBerry handsets in our lineup that include Wi-Fi, and we anticipate that this number will grow over time.

RIM’s Wi-Fi architecture is designed to allow the handset to connect to the best network available – either the mobile network or Wi-Fi – with no user intervention

required. Once you connect to a Wi-Fi network and save the settings, your BlackBerry handset automatically switches between the mobile network and Wi-Fi network as you move about during the day. This seamless connectivity is an important element of making Wi-Fi truly easy to use.

UMA Today: Has the innovation with Wi-Fi extended to power? One of the complaints about Wi-Fi enabled devices is that the power consumption is much higher. Is that really the case?

McAndrews: We have always prided ourselves on great battery life for BlackBerry devices, and we’ve extended our power-saving know-how to Wi-Fi. BlackBerry smartphones are engineered to allow users to leave their Wi-Fi radio turned on all the time. The seamless connectivity I mentioned – the ability for the BlackBerry smartphone to automatically switch between the mobile network and Wi-Fi – is only possible if the Wi-Fi radio is always on. (continued, p.32)

JULY

T-Mobile US launches @Home, its innovative fixed-line home phone service. Suscribers can purchase a new Linksys terminal adaptor with UMA technology and plug it into a broadband connection for fixed-line voice service in the home, driven by the mobile core network.

Cincinnati Bell launches Fusion Wi-Fi, the next evolu-tion of its Home Run UMA service launched June 2007 as the first converged wireless and Wi-Fi service in the Greater Cincinnati and Dayton, Ohio, markets. Fusion Wi-Fi customers receive unlimited Wi-Fi minutes for as little as $10 per month. The service is available with the Nokia 6086 and BlackBerry Pearl handsets.

T-Mobile US announces the availabil-ity of two new phones for subscribers of its UMA-based Unlimited HotSpot Call-ing service. The Nokia 6301 and Sam-sung t339 bring two stylish options to the expanding Unlimited HotSpot Calling family. Customers can now choose from eight UMA-enabled, dual-mode phones, including three smartphones.

Sagem launches its third UMA hand-set, my519X, for subscribers of Orange’s ‘Unik’ service. The new tri-band phone music phone has an MP3 player, mea-sures 108 x 48 x 11mm and weighs only 89g. It’s Orange’s first music phone with UMA technology.

AUGUsT

Heavy Reading reports that early 2010 will be the criti-cal period for commercial trials of femtocells as operators

prepare for full launches later that year or in 2011, ac-cording to its study, “Femtocell Deployment and Market Perception.”

sEPTEMBEr

Orange launches the world’s first 3G UMA platform, accessible to its Unik customers. Launching with exclusive handsets from Samsung and Sony Ericsson, UMA and 3G network technologies will be combined in one device for the very first time. Customers will experience richer content services and faster data speeds on Orange’s 3G and Wi-Fi networks more cost-effectively.

Sony Ericsson launches the G705u, one of the first 3G/UMA devices ever and its first UMA-enabled, dual-mode handset. The device features include a 2.4-inch display with automatic screen rotation courtesy of an accelerometer, aGPS with Google Maps for Mobile, 1GB internal memory, built-in FM radio, an RSS reader, an HTML browser and more rich features.

An Informa Telecoms & Media report predicts more than half of all mobile data traffic will be generated at home within the next five years, with voice not far behind. It says the growth in home usage of mobile services will drive the business case for femtocells, and mobile data traffic generated in the home environment is expected to reach 58 per cent by 2013. Informa expects femtocell deployments to help operators offload up to 8 percent of total mobile traffic to fixed networks via end user broadband lines.

NEC Corporation (NEC) contributes in strategic funding to Kineto Wireless. NEC cites

Kineto’s FMC solutions enabling mobile operators

UMA 2008 newslineKey product & service announcements Q3–Q4 2008

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around the world to deliver a variety of new revenue generating FMC services, including dual-mode handsets, femtocells, terminal adaptors, softmobile clients and more, to facilitate NEC’s aim to be the leading provider of femtocell solutions worldwide.

Research in Motion (RIM) unveils the BlackBerry Pearl Flip 8220 smartphone, the first flip BlackBerry, and says it’s available through T-Mobile US. The UMA-enabled quad-band EDGE-based device is light and features two high-res, light-sensing color displays, an external LCD to easily preview incoming messages and calls and a 240x320-pixel internal LCD. The phone has a number of multimedia, camera and recording features, as well as GPS, BlackBerry maps and mobile streaming.

OCTOBErInfonetics Research reports in “FMC Equipment, Phones and Subscribers” that sales of dual-mode cellular/Wi-Fi phones, hit

$7.6 billion in 2Q08 and are expected to be up 16 percent for the year, indicating healthy growth for converged cellular/Wi-Fi services in both enterprise and consumer market segments. Plus, the FMC network element market grew 5-fold from 2006 to 2007 and is forecast to grow another 7-fold between 2007 and 2011 worldwide.

nOVEMBErWestell Technologies, Inc. licenses Kineto’s industry-leading UMA/GAN client software for integration into UMA-based terminal adaptors and routers for

mobile operators to deliver cost-effective, fixed-line home phone services.

DECEMBEr

Orange announces high definition (HD) mobile TV for Unik, giving customers in France access to more than 60

HD mobile TV channels. Customers can view high-quality TV content on a UMA-enabled, dual-mode handset, whether they are at home, in Orange Wi-Fi hotspots or traveling.

LG Electronics launches its first 3G + UMA handset, the KF757, also known as the Secret. It supports HD mobile TV for Unik, Neon Touch and Touch Media Navigation that allows users to navigate the phone’s media features, such as music, photos, FM radio and more. It has a 5 megapixel camera, video recording, a carbon fiber battery cover and more.

Samsung’s new 3G/UMA handset, the P270, becomes available to Orange Unik subscribers. Orange also adds the Sony Ericsson G705U to its Unik handset roster.

T-Mobile US offers @Home subscribers another terminal adaptor choice, the UTA200-TM HiPort™ adaptor from

Linksys. Subscribers can make unlimited nationwide calls with T-Mobile @Home. The concept is as simple as when it was first launched: Subscribers can take home the new Linksys terminal adaptor with UMA technology and plug it in to the home broadband connection for fixed-line voice service in the home, driven from the mobile core network.

Rogers becomes the first operator to deliver the new BlackBerry Curve 8900 with UMA. Rogers

continues to expand its “TalkSpot” service with the latest UMA-enabled Blackberry that features GPS, a high-resolution 480x320 display, 3.2 mega pixel camera and full QWERTY keyboard on an ultra-thin (0.53 inch) platform.

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INTERVIEW


If a user needs to shut off their Wi-Fi radio to get reasonable battery life, they won’t be able to seamlessly switch to a Wi-Fi connection. This is why we feel that battery life is not a “nice to have” feature, it’s a fundamental part of the BlackBerry Wi-Fi user experience.

UMA Today: A while back, rIM acquired Ascendant, a company which makes PBX extension products for mobile phones. In the rIM portfolio, the product is now called Mobile Voice system (MVs) and has many successful deployments. How do you see UMA and MVs in the market?

McAndrews: We believe UMA and MVS solve different problems. UMA is a transport technology designed to carry mobile services like voice and SMS over Wi-Fi. MVS, on the other hand, is a solution that extends corporate PBX features to the mobile handset.

One of the key features of MVS today is “Single Number Reach.” When someone calls you on your work phone number, the call rings on multiple phones simultaneously – work, home,

mobile or any other phone you designate. As soon as you pick up the call on one of the phones, the other phones stop ringing. This feature allows a business user to list only their work phone number on their business card, but always be reachable no matter where they are.

These two technologies – UMA and MVS – complement one another, and are primarily intended for different markets. While UMA has found great traction in the home market, MVS is designed for business use.

UMA Today: Last question. Any cool new UMA-enabled phones you can leak to UMA Today? We’re constantly on the look out for the next big thing. Also, we have a staff that’s quite happy to test new products if you’re ever in need… McAndrews: [Laughs] Well, nothing I can confirm

right now. But RIM remains committed to UMA, and there are certainly more products on the horizon.

UMA Today: Thank you for your time.

In the beginning, UMA services were limited with just two devices. Today, there are more than 20 UMA-enabled 2G and 3G dual-mode phones, along with UMA-enabled terminal adaptors

and femtocells. What a difference a day makes. For more information, visit us online at www.umatoday.com/mobileHandsets.php.

What a difference

a day makes.

LTE

Technology

Transcript of LTE