Presentation from Continuous Computing at LTE World Summit 2010 in Amsterdam.

1. Delivering Innovative New Wireless
Products & Services
Manish Singh
Vice President
Product Line Management
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2. At a Glance
Over 150 Customers Worldwide
Protocols
LTE
DPI
Femtocell
ATCA Professional
Platforms Services
“Smarter, Faster, Cheaper” Mobile Broadband
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3. LTE’s Momentum
75+ Operators
• Committed LTE plan
• Trials & Rollouts
1st LTE Commercial Network
• Launched in 2009
• TeliaSonera in Sweden & Norway
72 Million LTE Connections by 2013
• 2010 more commercial deployments
• Verizon, NTT DoCoMo, China Telecom
Source: Infonetics Research, 2009
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4. Challenges
Capacity Mind The Gap
• Traffic doubling every 12 months • Flat rate pricing
• LTE spectral efficiency gain = 4X • More for less
Source: Morgan Stanley, Mobile Internet Report 2009 Source: Light Reading, 2009
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5. Options
Increase Revenue Reduce Traffic
• $X / MB • Walled Garden
• Less for More • Traffic Blocking
But, There Is No Going Back…
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6. Alternative
MME / Serving GW MME / Serving GW Capacity
S1 S1
X2
eNodeB eNodeB
Cost
eNodeB
Revolutionary Network Architecture
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7. Disruption
Core
MME / Serving GW MME / Serving GW
RAN-Aware Internet Video
Traffic Shaping Offloading Transcoding
S1 S1
X2
eNodeB eNodeB
Access
Small Cells TD-LTE WiFi Offloading
eNodeB
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8. Network Mutation
Macro Topology Hierarchical Cell Structure
Coverage Era Capacity Era
1990 2010
“The need for 4G picocells and femtocells to enhance coverage and boost
capacity in hotspots is one of the important principles for Verizon's LTE Network”
-Verizon Wireless CTO
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9. DPI Evolution
Pre-DPI Torrent Defensive Monetize
…unregulated, unsustainable …stop the data flood …revenue and QoE
Bulk shaping, typically on Gi interface Putting the customer in control
Necessary step to avoid meltdown, but not Charging & care & policy vendors? Internet offload ?
always popular Improved QoE…create revenue
2007 2008 2009 2010 2011
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10. DPI = Control
Video Conference
Operator VoIP
Gaming
Video on Demand
Email
Business Class VPN
Browsing
P2P
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11. Drivers
Demographics Devices Demand
Internet Generation Mobile Internet Devices Internet Apps & Content
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12. Applications
Context
Presence
Location
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13. And More to Come…
 Smartphones, Netbooks, Notebooks…
Smartphones Netbooks Notebooks
 Cameras, eBooks, Med Devices, Gaming, Navigation…
Personal
IP Cameras eBooks Medical Devices Gaming Consoles Navigation Systems
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14. 50B Connected Devices
Connected Devices
12  M2M Connectivity
10  Today, predominantly WiFi
 Consumer Opportunity
Relative Comparison
8
6
 Social networking
 Healthcare automation
4
2
 Enterprise Opportunity
 Smart meters, tracking...
0
 Challenges
2009 2015
Year 2020
 Capacity
 Coverage
Consumer Electronics
 Cost
Traditional Mobile Devices
Sources: Various analyst reports, Continuous Computing estimates
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15. New Opportunities
Retailers Manufacturers  Today’s Business Chain
 Consumer  Retailer  Manufacturer
 Mostly, pay one-time
 Embedding LTE in consumer devices
 New entrant: Operator
 Recurring business model opportunity
 Netbooks already setting the trend
 Pay usage-based, application-based
 Addressing the cost challenge
Operators Consumers  Operator subsidizes devices, OR
 Mfgr subsidizes & shares revenue
Consumer Device Ecosystem
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16. Infrastructure
Coverage • Both Indoor & Outdoor
Capacity • Reliable Transport
Control • Traffic Management, QoS, QoE
Cost • Lower Cost / Bit
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17. “Smarter, Faster, Cheaper” Mobile Broadband
Femtocells =
Cheapest
Bit Pipe
LTE = Fastest Bit Pipe DPI = Smartest Bit Pipe
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18. LTE Reference Design
 MicroTCA Reference Design
 Trillium LTE Femtocell Software
 3GPP March 2009
 LTE Uu
 FDD & TDD both supported
 S1 & X2 Network interfaces
 picoChip PC7608
 Software defined LTE PHY
 Frequency, bandwidth options
 2 x 2 MIMO operation
 Cavium OCTEON
 Multi-core MIPS64 Processor
 L2 – L7 software execution
 Performance measurements available
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19. Balance
Network Device
Act Now!
Wait…
Femtocell = LTE’s Biggest Opportunity
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20. Signaling Load
MME
IPsec
HeNodeB
Security Gateway
Serving GW
The MME MUST Scale to Handle a HIGH Number of SCTP Connections
Fast Path SCTP Highly
PP50
+ = Scalable
MME
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21. Metered vs. Flat Rate Pricing
 Metered: $X / MB  Flat Rate: $X / Month
 Consumer’s Viewpoint  Consumer’s Viewpoint
 What’s a Megabyte?  Voice = Minutes
 I want to download songs,  Data = Months
emails, web pages, etc.  In control
 Lack of control  Get my songs, emails, web, etc.
 Too complex
 Result:
 Result:
Simplicity Is Key
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22. Bandwidth-Based Pricing
 Fast, Faster, Fastest  $X / Mbps
Pros Cons
 Consumer’s viewpoint  “Guaranteed” data rates, QoE
 I’m in control  Dead spots?
 Easy to understand  Coverage gaps?
 LTE – the right opportunity!  Bit Pipe!
 Leverage context  Revenue / Traffic decoupling
 Real-time service tier upgrades  20% users taking 80% capacity
Tiered SLAs, Tiered Pricing Model
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23. Device-Based Pricing
Traffic  $X / month / device
High
Volume
 Leverage context
 New growth engine
Low High
Mobility
Value  Recurring revenues
 Easy to understand
Low
 In control
Usage-Based, Tied to Device
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24. Summary
 50B Connected Devices
 M2M, Data, Video, Voice…
 Solid Infrastructure Required
1st
 Coverage = Macro
LTE Femtocell
 Capacity = Femto
 Control = DPI
Reference Solution
Launched
 Femto is LTE’s BIGGEST opportunity at MWC 2010
 Networks will mutate
 Lower cost / bit
14 LTE
Design Wins!
 Establish your beachhead NOW!
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25. Questions & Comments
Manish Singh
Vice President, Product Line Management
www.ccpu.com
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