Leslie Bill


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Leslie Bill

  1. 1. <ul><ul><li>Barlow Keener </li></ul></ul><ul><ul><li>Keener Law Group </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>Tel: 617-671-1202 </li></ul></ul><ul><ul><li>Blog: www.whydom.com </li></ul></ul><ul><ul><li>www.barlowkeener.com </li></ul></ul><ul><ul><li>FaceBook: Barlow Keener </li></ul></ul>
  2. 2. Barlow Keener <ul><ul><li>Focused on helping innovators in wireless, internet, telecommunications and Internet media law navigate through the regulatory and legal issues </li></ul></ul><ul><ul><li>Experience </li></ul></ul><ul><ul><li>CEO and Legal Counsel, BrahmaCom, Inc. facilities-based CLEC </li></ul></ul><ul><ul><li>General Counsel, CSA, Inc. direct-to-the-consumer exercise equipment sales using cable and broadcast video ads </li></ul></ul><ul><ul><li>General Attorney, BellSouth Telecommunications </li></ul></ul><ul><ul><li>JD Emory University; BA University of the South; MA North Carolina Central University </li></ul></ul>
  3. 3. <ul><ul><li>Overview of Femtocells </li></ul></ul><ul><ul><li>Femtocell Regulations and Standards </li></ul></ul><ul><ul><li>911 Requirements </li></ul></ul><ul><ul><li>Billing Issues </li></ul></ul><ul><ul><li>Interference </li></ul></ul><ul><ul><li>Roaming Charges </li></ul></ul><ul><ul><li>Rogue Femtocells </li></ul></ul><ul><ul><li>Parasitic Use Problems: Deep Packet Inspection, Blocking, Sniffing </li></ul></ul><ul><ul><li>Femtocell Regulatory and Legal Issues </li></ul></ul>
  4. 4. <ul><li>Femtocell Facts </li></ul><ul><ul><li>Micro 10 -6 Nano 10 -9 Pico 10 -12 Femto 10 -15 </li></ul></ul><ul><ul><li>Cell Towers: Macrocell Microcell Picocell Femtocell </li></ul></ul><ul><ul><li>60% of cell phone calls are home and office </li></ul></ul><ul><ul><li>Total world reach: 70m femtocells by 2012 ABI Research </li></ul></ul><ul><ul><li>Femtocell is a $2 billon device market by 2011 </li></ul></ul><ul><li>Carriers use customer’s DSL/Cable to solve carrier dilemma </li></ul><ul><ul><li>#1 Poor coverage in the home – 10-15% of homes </li></ul></ul><ul><ul><li>#2 Growing demand on the towers caused by data </li></ul></ul><ul><ul><li>#3 Cellco will “own” the home taking wireline </li></ul></ul><ul><ul><li>#4 Femtocell Gateway – Storage and communication </li></ul></ul><ul><li>End-User Benefits from Using Femtocells </li></ul><ul><ul><li>For 15% of homes coverage is poor </li></ul></ul><ul><ul><li>New Bundled “unlimited” calling in the home </li></ul></ul><ul><ul><li>Data speed increases – 4 bars all the time </li></ul></ul>Femtocells - Basics
  5. 5. Femtocells: The Market Drivers and Rollouts <ul><li>Femtocell goals </li></ul><ul><li>Replacement of wireline phone – gives “perfect” home service </li></ul><ul><li>Carrier fix for looming data problem with mobile video </li></ul><ul><li>Consumer FMC converging the wireline phone into wireless </li></ul><ul><li>Trials and Rollouts </li></ul><ul><li>Softbank July 2007 Trial in Japan </li></ul><ul><li>Telefonica O2 Trial in Madrid </li></ul><ul><li>Sprint Airave rollout in Denver, Indianapolis, and Nashville </li></ul><ul><li>Organizations and Standards </li></ul><ul><li>Femtocell Forum Founded July 2, 2007 with 59 members </li></ul><ul><li>13 Different Architectures working to simplify to promote the technology </li></ul>
  6. 6. Femtocells: The Vendors <ul><li>Femtocell Back-End Systems – Controller Sytems </li></ul><ul><ul><li>Sonus - mobilEdge, Zynetix, $13m, femtocell MSC controller with IMS, HLR </li></ul></ul><ul><ul><li>Airvana - controllers, radios, Qualcomm investment, Verizon </li></ul></ul><ul><ul><li>Tatara – connecting femtocells to network </li></ul></ul><ul><ul><li>Bitwave - Software defined radio femtocell </li></ul></ul><ul><ul><li>Alcatel-Lucent – in the lab, femtocell controllers </li></ul></ul><ul><li>Femtocells </li></ul><ul><ul><li>IP.access 250 employees, Cisco tied into Linksys gateway </li></ul></ul><ul><ul><ul><li>6 years of Picocell experience </li></ul></ul></ul><ul><ul><li>Ubiquisys – Google and T-Mobile invested </li></ul></ul><ul><ul><li>RadioFrame Networks </li></ul></ul><ul><ul><li>Huawei – strongest mover in femtocells </li></ul></ul><ul><li>Chips and Femtocells </li></ul><ul><ul><li>PicoChip – ABIS chip in all femtocells except Huawei </li></ul></ul><ul><ul><li>Huawei – 500 employees, built own chip, rolling out Mar 2008 </li></ul></ul><ul><li>Gateway – Owning the Home </li></ul><ul><ul><li>2Wire AT&T investor </li></ul></ul><ul><ul><li>Thomson – 27,000 emp, Airvana partner Cisco – Linksys </li></ul></ul><ul><ul><li>Netgear </li></ul></ul>
  7. 7. Femtocells v UMA <ul><li>$19.99 per month for unlimited calls at home </li></ul><ul><li>Choice of 3 phones </li></ul><ul><li>WiFi routers $49.99 </li></ul>UMA WiFi service Femtocell service Sprint Airave <ul><li>$15 per month for unlimited calls at home </li></ul><ul><li>Any Sprint phone </li></ul><ul><li>Airave femtocell $49.99 </li></ul>
  8. 8. <ul><li>Verizon fined $1m for “unlimited” advertisement </li></ul><ul><li>Verizon announces 5G limit on EDVO use </li></ul><ul><li>Ultra Mobile PC connected via cell data service </li></ul><ul><ul><li>Coverage </li></ul></ul><ul><ul><li>Frequency effect </li></ul></ul><ul><ul><ul><li>Fact 1: To have same coverage on frequency 2x higher, 4x more base stations are required for similar coverage </li></ul></ul></ul><ul><ul><ul><li>Fact 2: 2G->3G </li></ul></ul></ul><ul><ul><li>Bandwidth Effect </li></ul></ul><ul><ul><ul><li>Fact 3: To upgrade data service from 64kbps to 2Mbps, 10x * more base stations are required for similar coverage </li></ul></ul></ul><ul><ul><ul><li>Fact 4: Advertised data service moving: 384kbps->8Mbps </li></ul></ul></ul><ul><li>Femtocell Cost – Complaints from the carriers </li></ul><ul><ul><li>Carriers seeking $100 - $200 femtocell </li></ul></ul><ul><ul><li>Churn $250 to obtain a new customer </li></ul></ul><ul><li>Towers: 1 Mobile Video download = 100 voice calls </li></ul><ul><ul><li>Tower cost $50,000 equipment + legal </li></ul></ul><ul><ul><li>Power, Rent, Backhaul </li></ul></ul><ul><ul><li>Femtocells become more cost effective than new towers </li></ul></ul>Femtocell -- The Cellco Broadband Problem
  9. 9. <ul><li>Femtocell Nomadicity </li></ul><ul><ul><li>New set of problems as femtocells usage from Europe and Asia could start showing up in the US without restrictions </li></ul></ul><ul><ul><li>Difficult to monitor and enforce – Consumers are in control </li></ul></ul><ul><ul><li>Consumers are not educated, FCC Enforcement Bureau is weak </li></ul></ul><ul><ul><li>Proliferation of femtocells will be tremendous – one per home </li></ul></ul><ul><ul><li>100 wireless providers in the US: Will all use locked and blocked femtocells? </li></ul></ul><ul><li>FCC Regulations: </li></ul><ul><ul><li>No FCC Orders dealing directly with femtocells by name or device description </li></ul></ul><ul><ul><li>911 regulations: a mix of VoIP and Wireless for femtocells </li></ul></ul><ul><ul><li>Licensed spectrum geography restrictions: FCC Enforcement Bureau </li></ul></ul><ul><li>FCC Device Regulation </li></ul><ul><ul><li>Unregulated Cell Amplifiers “Repeaters” are being looked at by FCC staffers </li></ul></ul><ul><ul><li>Informal complaints by carriers of “unauthorized” amplifiers interference </li></ul></ul><ul><ul><li>Public Safety complaints to FCC about repeater interference </li></ul></ul>Femtocells: No Standards, No Regulations
  10. 10. Femtocells - 911 Issues <ul><ul><li>100,000 911 calls made each day from wireless phones </li></ul></ul><ul><ul><li>FCC: Anyone near a carrier tower - femtocell - including roamers, must have 911 access </li></ul></ul><ul><ul><ul><li>Applies to femtocells that now have subscriber limitations – users at the home </li></ul></ul></ul><ul><ul><li>If femtocell is out of the “approved” location or licensed territory area, should 911 calls be required to be made? </li></ul></ul><ul><ul><li>FCC 911 Antenna location regulation </li></ul></ul><ul><ul><ul><li>Phase I FCC's Order (94-102) require that carriers to deliver location of cell site </li></ul></ul></ul><ul><ul><ul><li>Phase II mandates that carriers must pinpoint a customer's actual location </li></ul></ul></ul><ul><ul><ul><li>2007 FCC 911 NPRM – proposed the idea of a hybrid location requirement using GPS location and tower location in the network </li></ul></ul></ul><ul><ul><ul><ul><li>Problem with GPS Femtocell location inside buildings </li></ul></ul></ul></ul><ul><ul><li>Requirement that carriers provide 911 even in areas that have weak signals </li></ul></ul><ul><ul><ul><li>Automatic A/B Roaming-Intelligent Retry (with some modifications), Adequate/Strongest Signal, and Selective Retry. </li></ul></ul></ul>
  11. 11. 911 Issues - Femtocells look like VoIP <ul><ul><li>Femtocell 911 Location mergers cell and VoIP issues </li></ul></ul><ul><ul><ul><li>Femtocell call: Carried over the customer’s internet service </li></ul></ul></ul><ul><ul><ul><li>Do 911 regulations for VoIP Wireless trump? </li></ul></ul></ul><ul><ul><ul><li>Convergence of VoIP and wireless predicted in orders </li></ul></ul></ul><ul><ul><ul><li>FMC 911 calls from within the large enterprise or university campus </li></ul></ul></ul><ul><ul><ul><li>FMC will drive IMS as the 911 technology solution </li></ul></ul></ul><ul><ul><ul><ul><li>From the computer, VoIP, WiMax, office </li></ul></ul></ul></ul><ul><ul><li>Solutions and Problems: GPS – CDMA – can be used to “lock” the femtocell </li></ul></ul><ul><ul><ul><li>E911 Order requires carriers to report the location of base stations </li></ul></ul></ul><ul><ul><ul><li>A nomadic femtocell can be locked if it moves from the home </li></ul></ul></ul><ul><ul><ul><li>2007 FCC NPRM recommends Automatic Location Identification for VoIP </li></ul></ul></ul><ul><ul><ul><ul><li>VoIP user goes to hotel, location is provided by network, not user </li></ul></ul></ul></ul><ul><ul><ul><li>Non-GPS femtocells could be moved by customers </li></ul></ul></ul><ul><ul><ul><ul><li>GPS is not technically needed for non-GSM femtocells </li></ul></ul></ul></ul><ul><ul><ul><ul><li>GPS does not work in buildings </li></ul></ul></ul></ul><ul><ul><ul><ul><li>GPS is not in all cell phones – this could change, but not solve problem </li></ul></ul></ul></ul>
  12. 12. Femtocell Interference: Traveling Towers <ul><ul><li>Femtocell interference </li></ul></ul><ul><ul><ul><li>If the Femtocell is moved into another licensed area, it will cause interference if not “turned off” </li></ul></ul></ul><ul><ul><ul><li>Licensed areas are exclusive to the licensed carrier </li></ul></ul></ul><ul><ul><ul><ul><li>Nomadic femtocells are the responsibility of the customer’s carrier </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Customers, not carriers, control the location of the femtocell </li></ul></ul></ul></ul><ul><ul><li>Rogue or nomadic femtocells cells </li></ul></ul><ul><ul><ul><li>Femtocell technology provides the opportunity for rogue devices </li></ul></ul></ul><ul><ul><ul><li>Picocells, for example, are used on cruise ships </li></ul></ul></ul><ul><ul><ul><ul><li>A ”traveling licensed area” – along with the traveling picocell </li></ul></ul></ul></ul><ul><ul><ul><li>No regulatory limitations on femtocell devices </li></ul></ul></ul><ul><ul><ul><ul><li>Location of towers controlled where customers use the service </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Femtocells without location controls can be used anywhere </li></ul></ul></ul></ul><ul><ul><ul><li>Interference with rogue femtocells in licensed spectrum </li></ul></ul></ul>
  13. 13. Billing Challenges <ul><ul><li>Flat Rate Service from the Femtocell </li></ul></ul><ul><ul><ul><li>Class action lawsuits Small billing irregularities for wireless providers = trouble </li></ul></ul></ul><ul><ul><ul><li>Oct 2007 AT&T settles with California attorney for not refunding charges on stolen phones $500,000 in legal fees + refunds </li></ul></ul></ul><ul><ul><ul><li>Aug 2007 BellSouth settles class action for $8.2m for charging Kentucky internet tax </li></ul></ul></ul><ul><ul><ul><li>Jun 2005 Cincinnati Bell settles class action for $6m for incorrect roaming billing </li></ul></ul></ul><ul><ul><ul><li>Femtocell Calling: Customers call from home with femtocell service plan but unknowlingly are on the minute clicking macro cell </li></ul></ul></ul><ul><ul><ul><ul><li>A per minute rate is charged without customer’s knowledge </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Difficult for the carrier to determine the problem </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Large numbers of minutes and customers = class action </li></ul></ul></ul></ul><ul><ul><li>Voice and Data Speed Expectations by the Customers </li></ul></ul><ul><ul><ul><li>Femtocells that use 1xRTT will result in slower speeds / or none at home </li></ul></ul></ul><ul><ul><ul><ul><li>Result of unmet femtocell expectations could result in issues </li></ul></ul></ul></ul><ul><ul><ul><ul><li>State Attorney General or Class Actions: False billings </li></ul></ul></ul></ul><ul><ul><ul><ul><li>False Advertising: $1m NY AG against Verizon for “Unlimited” Internet Oct 2007 </li></ul></ul></ul></ul>
  14. 14. Femtocells: Roaming charge issues <ul><ul><li>Customers get excited about femtocells for 3 reasons </li></ul></ul><ul><ul><ul><li>1. Poor cell phone service at home 10-15% of the homes </li></ul></ul></ul><ul><ul><ul><li>2. Taking advantage of the bundle package of “free” calls </li></ul></ul></ul><ul><ul><ul><li>3. Taking the femtocell to the vacation home without cell service </li></ul></ul></ul><ul><ul><li>There are 90 smaller cell phone companies in the US </li></ul></ul><ul><ul><ul><li>Femtocells can be created without GPS or user restrictions </li></ul></ul></ul><ul><ul><ul><li>Customers can move their femtocell to another carriers </li></ul></ul></ul><ul><ul><ul><li>U.S. customer could be charged by a foreign carrier where US customer locks on to foreign Femtocell – Mexico example </li></ul></ul></ul><ul><ul><li>Roaming Issues are created </li></ul></ul><ul><ul><ul><li>Carrier A customer moves femtocell to Carrier B’s licensed territory </li></ul></ul></ul><ul><ul><ul><li>Femtocell is used by customers of Carrier B in the new territory </li></ul></ul></ul><ul><ul><ul><li>Call through femtocell shows up as delivered by Carrier A </li></ul></ul></ul><ul><ul><ul><li>Carrier A bills for roaming charges for call originated Carrier B’s territory </li></ul></ul></ul><ul><ul><ul><li>Difficult to monitor and detect </li></ul></ul></ul>
  15. 15. Parasitic Use Problems <ul><ul><li>Carriers will be transmitting calls through a customer’s internet </li></ul></ul><ul><ul><ul><li>VoIP carriers like Vonage have regularly been called “parasitic” </li></ul></ul></ul><ul><ul><ul><li>The voice call is carried on unrelated 3 rd party’s service </li></ul></ul></ul><ul><ul><ul><li>New opportunities for listening and interfering with calls </li></ul></ul></ul><ul><ul><li>“Wiretapping” by customers at home? </li></ul></ul><ul><ul><ul><li>Assumption is that femtocell will have encryption </li></ul></ul></ul><ul><ul><ul><li>Assumption that femtocell will restrict non-family from use </li></ul></ul></ul><ul><ul><ul><li>But if not, potential for “sniffing” and listening to other cell callers </li></ul></ul></ul><ul><ul><ul><li>Sniffing is not limited to enterprise internet systems </li></ul></ul></ul><ul><ul><li>Blocking: Internet providers have blocked VoIP, P2P </li></ul></ul><ul><ul><li>Deep Packet Inspection: Allows providers to see/listen to all traffic </li></ul></ul>
  16. 16. <ul><ul><li>Barlow Keener </li></ul></ul><ul><ul><li>Keener Law Group </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>Tel: 617-671-1202 </li></ul></ul><ul><ul><li>Blog: www.whydom.com </li></ul></ul><ul><ul><li>Web site: www.barlowkeener.com </li></ul></ul>