Presented by Todd Mersch at China Femtocell Symposium 2009 on Oct 15.

1. Architecting Femtocell Solutions
The Ten Most Important Steps to Building a Femtocell
Todd Mersch
Director, Product Line Management
Continuous Computing
www.ccpu.com Confidential and Proprietary

2. At a Glance
Over 150 Customers Worldwide
Protocol Software
LTE
DPI
Femtocell
ATCA & Professional
cPCI Hardware Services
“Smarter, Faster, Cheaper” LTE Mobile Broadband
www.ccpu.com Confidential and Proprietary 2

3. Mobile Broadband: Huge Demand, Huge Challenges
Mobile voice revenues saturating
Mobile broadband now driving growth
Traffic up 130% per year
Doubling every 9 months!
BUT new base stations & spectrum Source: IDC
adding only 20% capacity / year
Video is the true network killer app
Will bring mobile broadband to its knees!
Data streams are no longer bursty
Ex: Peer-to-peer (P2P) & streaming
Operators need to act!
Source: Pyramid Research Source: Cisco Visual Networking Index, 2009
www.ccpu.com Confidential and Proprietary 3

4. 3G & LTE Femtocells
Home Base Station Femtocell Solutions
Offloads the Provides cell coverage indoors
most power- Low-power & self-configuring to
Access point (CPE) hungry 3G users
from the
minimize interference
Aligns with 3G / LTE standards
macrocell to a
Leverages users’ broadband
home base
station
Standard air interfaces
Backhaul traffic on users’
broadband IP
Offloads users from macrocell
Macro network Standard 3G 3G femtocell
network base station mobile phone converged device
www.ccpu.com Confidential and Proprietary 4

5. 3C Stifling 3G Adoption
Coverage, Churn, Capacity Unhappy
Customer Base
Coverage
3G suffers from inadequate indoor signal penetration
Consumer spends ~60% - 70% time in indoor environments
Poor Coverage = Poor Voice + Poor Video + Lower Data Rates
Churn Top Line Hit
Consumer paying higher price for 3G / HSPA expects high quality of service
Poor Coverage increases Churn
Churn = ~$100/month ARPU Loss + ~$400 New customer acquisition cost
Capacity
Indoor users transmitting at high power
Bottom Line Miss
High Power = Low Battery Life
More Cell Sites = Higher OpEx + CapEx
Tough to Be a 3G Carrier!
www.ccpu.com Confidential and Proprietary 5

6. Building FAP – Eight Critical Decisions
1. Silicon Selection
2. Protecting Software Investments
3. Supporting Evolving Network Architectures
4. Capacity & Performance
5. Standalone vs. Converged CPE Device
6. RF Interference Management
7. FemtoZone Services
8. Future Proofing, What’s Next
www.ccpu.com Confidential and Proprietary 6

7. Silicon Selection
Integrated Silicon vs. Discrete Components
Modem Functions
Baseband Functions
RRM, RRC, RLC, MAC, PDCP, RANAP, GTP…
Hardware Accelerators
Network Security – IPsec
Encryption Engines – Kasumi, Snow3G…
Timing Synchronization – IEEE 1588, NTP v2…
Integrated Silicon Drives BOM Cost Down
www.ccpu.com Confidential and Proprietary 7

8. Protecting Software Investments
Underlying Hardware Platform will Change
Vibrant silicon eco-system
High cost pressures
FAP Software is Complex
RRM, Management, Security, Signaling, Services…
Protecting Software Investments is a MUST
Software Portability = Flexibility
Silicon roadmaps will evolve
Quickly capitalize on new features and lower cost
Ease of Software Portability will Go a Long Way
www.ccpu.com Confidential and Proprietary 8

9. Evolving Network Architectures
Iu-CS Iu-CS
IP-RAN
Gateway
Gateway
Security
Security
Tunneled Iu MSC Femto MSC
Iu Concentrator Iu-h Gateway
Iu-PS Iu-PS
SGSN SGSN
Tunneled Iu New Iu-h
MSC
AAA System (e.g. HSS)
IuCS IuCS
Diameter IWF AS
3G RAN MSC GGSN
IuCS
SIP / IMS
IuPS IMS Call
Gn Control
Gateway
Gi
Security
SIP
Iu OR Femto CSCF
SGSN Wi
Iu-h Gateway Cx
RTP MGC Gi
MGW
IuPS Packet Data Wm AAA System
Gateway (e.g. HSS)
SIP
Iu-to-SIP FGW SGSN SIP in FAP
www.ccpu.com Confidential and Proprietary 9

10. Trillium Repertoire Loaded – Architecture Agnostic
Control Application Forwarding Application Control Application Forwarding Application
RRC PDCP RANAP Iu-UP RRC PDCP RANAP HNBAP Iu-UP
Stack Manager
Stack Manager
IP-RAN
RLC SCCP RLC RUA
MAC-b,MAC-d,MAC-sh M3UA GTP MAC-b,MAC-d,MAC-sh SCTP GTP
MAC-HS,MAC-ES MAC-E* SCTP MAC-HS,MAC-ES MAC-E*
PHY IP (IP Sec) PHY IP (IP Sec)
Tunneled Iu New Iu-h
Control Application Forwarding Application CC/MM/GMM/SM Forwarding Application
Stack Manager
RRC PDCP
RRC PDCP RANAP Iu-UP
Stack Manager
IuCS
SIP / IMS
RLC
RLC SCCP
MAC-b,MAC-d,MAC-sh SIP / RTP
MAC-b,MAC-d,MAC-sh M3UA GTP
MAC-HS,MAC-ES MAC-E* TCP / UDP SCTP
MAC-HS,MAC-ES MAC-E* SCTP PHY IPSec
IuPS
PHY IP (IP Sec)
Iu-to-SIP FGW SIP in FAP
Network Architectures will Continue to Evolve & Change
www.ccpu.com Confidential and Proprietary 10

11. Capacity & Performance
Performance = CPU Cycles = Cost
Software optimization is a MUST
Aggregate HSDPA Traffic Rates
Classes of Femtocell 80
70
Residential vs. enterprise 60
CPU Usage (in %)
50
Open vs. closed access 40
30
20
Femto vs. Super Femto 10
0
0 1000 2000 3000 4000 5000 6000 7000
Number of active users - 4, 8… Data Rate (in Kbps)
Peak Data Rates
7.2Mbps, 14.4Mbps… 100Mbps+
Software Optimization: Maximize Limited CPU Cycles
www.ccpu.com Confidential and Proprietary 11

12. CPE Convergence - Fixed / Mobile Operator Example
Customer Premises
Standalone
Wireline Fixed Voice
Wireless
Internet Access Mobile Voice
Secure aDSL / FTTX Network IPTV Untrusted Access Network
(20 – 100Mbps) (Security? QoS?)
Set Top Box Femtocell
Compelling IPTV story
Customer Premises True “Quad-Play”
Converged CPE
Reduced Churn
Increased ARPU
“The New Paradigm” Mobile Voice 100% Secure = more content
Fixed Voice
Internet Access Managed QoS reused for voice
Secure aDSL / FTTx Network
IPTV
(20 – 100Mbps) 4 medium blended applications
Drives ROI for FTTx build out
Femto-enabled STB Huge CapEx / OpEx savings
www.ccpu.com Confidential and Proprietary 12

13. RF Interference Management
Self Organizing Network
Femto-to-Macro, Femto-to-Femto
Dead spots Dead Spot
Network Aware FAP
Sniffer mode
Dynamic adjustment of Tx power
Frequency / code allocation
Dead Spot
Ping Pong Handoffs
Increased signaling traffic in core
Handoff delays / Tx power
Corner Cases Exponentially Increase RRM’s Complexity
www.ccpu.com Confidential and Proprietary 13

14. FemtoZone Services, Beyond Voice and Data…
Monetize Dead Minutes Real-Time Notification
Service Integration Real-Time Monitoring
Parental Home
Control Entertainment
3G / IMS Home
Security
Core
Nanny Home
Monitor Automation
Macro Network
Base Station Digital Home
Consistent APIs a Must for Ease of Service Integration
www.ccpu.com Confidential and Proprietary 14

15. 3G Roll-Out Lessons Learned
“Build it and they will come”
But how fast?
Diminishing investor patience
Nationwide network build out = cash burn
Indoor coverage
Higher spectrum = poor indoor signal penetration
2.6GHz > 2.1GHz > 1.8GHz > 900MHz
~60% mobile traffic originates indoors
Deliver where they need it
100Mbps data rates in home, office, café, airport…
Leverage existing GERAN / 3G HSPA for nationwide coverage
www.ccpu.com Confidential and Proprietary 15

16. LTE Rollout with Femtocells
Capacity
Demand-based
LTE
Capacity &
LTE Femto
Coverage
Femto 2.6GHz
LTE
LTE 2.6GHz
Femto
Femto
2.6GHz
2.6GHz
3G / HSPA Networks, 2.1GHz
Nationwide
Network
GSM / GPRS / EDGE Networks, 900MHz / 1800MHz
Coverage
Rural Sub-urban Urban Dense Urban
Low Broadband Proliferation High
www.ccpu.com Confidential and Proprietary 16

17. What’s Next … Trillium Powered LTE Femtocells
Trillium LTE Femtocell
• Reference
application and
management component
Home eNodeB Reference Application
• Integrated support for multiple LTE
Measure, Dynamic femtocell silicon solutions (Silicon
Intercell RB Connection Radio
Config & Resource
RRM Control Mobility Admission
Provision Allocation
Convergence Layer)
Femtocell • Integrated protocol stacks for LTE-
RRC
Management Uu, S1, and X2 Home eNodeB
PDCP S1-AP
Application interfaces
RLC eGTP
MAC • Fully compliant w/ 3GPP LTE (E-
SCTP UTRA) standards (TS 36.x series)
Silicon Convergence Layer
IPSec • Minimized footprint and optimized
PHY IP performance to meet femtocell
LTE-Uu X2, S1 constraints
• Same protocol suite for femto,
pico, and macro eNodeBs
Consistent Software Architecture Eases LTE Integration
www.ccpu.com Confidential and Proprietary 17