4 Years Later: The Evolving Femto
     Ecosystem and Value Proposition
     E      t       dV l P        iti
                           Todd Mersch
               Director, Product Line Management




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At a Glance


                                                Over 150 Customers Worldwide

               Protocols



                 LTE
                Femto
                 DPI


   ATCA                 Professional
 Platforms                Services




               See us in the Exhibit Area
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Recent News & Awards

   Trillium Monitoring Software
   • Network utilization, security/fraud info, etc.

   16th LTE Win: BreakingPoint
   • LTE measurement & validation

   Mindspeed + Arraycom + Continuous
        p          y
   • LTE eNodeB reference design
   • Accelerates deployment, reduces cost

   Allot S l
   All Selects Continuous
               C   i
   • DPI / Traffic Management
   • Top 3 traffic mgmt vendor (Infonetics)

   Winner:
   Winner:
   • Femto Forum Awards
   Winner:
   • Informa LTE Awards

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Agenda




Ecosystem Value Prop Predictions



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Ecosystem Evolution




                       Ecosystem



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How Far We’ve Come…


 18 Live Commercial Networks
                                               (    ,     )
     • North America First Femtos – Now Global (EMEA, APAC)
     • Estimated > 60 Trials (ABI Research)


 Over 120 Femto Forum Members
     • 50+ Operators Covering 1.4B Subscribers
     • 65+ Technology Providers = Vibrant Ecosystem
       65


 Just the Beginning
     • 49M FAPs & 114M mobile users by 2014 (Informa)
     • 3G service revenue $9B per annum by 2014 (Juniper Research)



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Femtocell Architecture & Network Elements




                                            Internet                                                       Carrier Wireless
                          Broadband                                               Std Interface             Core N t
                                                                                                            C     Networkk
          Femtocell
                                                                 Femto GW




               FAP Key Components                                                 FGW Key Components

               Application (RRM, IM, QoS)                                           Application (HO, AC Mgmt)
                                                                                                (HO AC,
    O                                                                    O
           Protocols       Timing        GPS                                       Protocols                        Scaling
    A                                                                    A
    &                                                                    &
                    PHY               Security                                          Middleware                         Security
    M                                                                    M
                Radio        Platform / Si                                           Platform                            I/O




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Today’s Vibrant Femtocell Ecosystem




Operators




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Architecture Standards Progression

In The Beginning There Was > 20…

                                               IuCS                                                            IuCS




                                                                               Gateway
                                                                               Security
                  Gateway
                  Security


      Tunneled                    Femto                 MS       Tunneled                         Iu                        MS
        Iub                        RNC                              Iu                       Concentrator
                                                        C                                                                   C

                                               IuPS                                                            IuPS


                                                        SGS                                                                SGS
 Tunneled Iub                                           N
                                                              Tunneled Iu                                                  N

  AAA System (e.g. HSS)
                                                                        IuCS
                             Diameter

                    UMA‐based
                                                                 3G                   MSC                   GGSN
                                        IuCS                                                                                      IMS Call
                                                                                                                                  IMS Call
                     Network 
                     N       k                                  RAN     IuPS
                                                                                                   Gn                 Gi          Control
                     Controller
        UMA‐                                      MS                                  SGSN                             Wi
        based         Security
                                                  C                                                                                     Cx
                      Gateway                                                                                  Gi
                       GANC             IuPS                                                            Packet Data              AAA System 
                                                                                                                           Wm
                                                                                                         Gateway                  (e.g. HSS)


                                                 SGSN                                                        SIP

 UMA/UNC Based
 UMA/UNC Based                                                IMS Based
                                                              IMS Based


                                                                                                                                                    And Then There Was One…
        Rapid alignment on standard
        • 3GPP & 3GPP2
                                                                                                                                                                     Iu‐CS
                                                                                                                                                                     Iu CS
        • WCDMA, CDMA2K & LTE




                                                                                                                                                Gateway
                                                                                                                                                Security
                                                                                                                                                            Femto            MSC
                                                                                                                                         Iu‐h              GateWay

        Focus now on IOT                                                                                                                                             Iu‐PS
        • FemtoForum sponsored PlugFests                                                                                        FAP

        • OA&M, Security & Interfaces                                                                                                                                        SGSN
                                                                                                                            New Iu‐h
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Silicon Supply Explosion

 In The Beginning There Was One…




 Large, Growing, Attractive Market = Competition




               SoC    Increased                   Drastic                                        Users &
                     Integration    Cost        Reductions                        Perf          Throughput




                            Must Preserve Software Investment
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Component Standards



                                      FAP Key Components

           Mgmt                       Application (
                                       pp         (RRM, IM, QoS)
                                                      , ,      )
                             OA
          Protocol           &M
         TR69 / TR196                 Protocols          Timing              GPS

                                           PHY                        Security
                                                                                                          FRMI
                                        Radio               Platform / Si                                Module
                                                                                                           Std




                            FAP             Silicon                      Optimized
                          Diversity       Innovation                      Costs




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Supply Chain Metamorphosis


I iti l Supply Chain
Initial S   l Ch i
 Components          FAP OEM
                                                  Tier 1 OEM                                         Operator
  (SW / HW)            ODM




  Components
                     FAP OEM                        Tier 1 OEM                                        Operator
   (SW / HW)



    Turnkey            ODM                                               Today’s
   Integrated                                                          Supply Chain


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Value Proposition Progression




                       Value Prop



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It’s Not Your Parents Femtocell…


Residential Femtocell (2006 + )




 Images Courtesy Femto Forum
                                      Everything’s a Femtocell (2009 + )
 Extension of Femto
 • Enterprise
        p
 • Public Access

 Radio Interface Progress
                    g
 • 2G / 2.G, 3G & LTE
 • Multi-Mode



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Revolutionizing Network Architectures


               M
               Macro T   l
                     Topology                 Hi
                                              Hierarchical C ll St
                                                     hi l Cell Structure
                                                                    t




                                Courtesy AirHop Communications


         Coverage Era                                                                  Capacity Era

   1990                                    2010


    “2011 to 2012 is [the] relevant timeframe for launching LTE femtocells”
                                           - Managing Director, NTTDocomo

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Value Proposition Geographically




    US First            Europe
   Coverage           Coverage &
    Centric           Performance                                                                     APAC
                                                                                                   Performance




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Operator Marketing




                Coverage Dominates Marketing Message

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Consumer Technology Reviews




         “My verdict is that the AT&T MicroCell can, indeed, dramatically improve cellular reception and reliability, but it's not a silver
                               bullet. I found it works best in truly dire coverage locations, with little or no service




                      “400-500k 3G iPads activated since March 2010 - 75% chose largest monthly plan
                “Of course the sceptics amongst us can see Vodafone's evil plan from the get go
                 Of                                                            Vodafone s            go.
                                                (2GB/month)” – July 2010
                They get you to pay for the shortcomings of their network while at the same time
                boosting your phone's capabilities in your home or office so you'll use it more…
                While that is probably true, the benefit here is that you don't have to move house
                or provider because you can't make or receive a damn call.”




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Predictions




                       Predictions



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Beachhead Opportunity



               3G              LTE
                                                                                       Act N !
                                                                                       A t Now!



                                                                                                 Wait…


                LTE = Femto’s Biggest O
                                      Opportunity

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Public Dual-Mode Femtocell



         Multi-Mode            Femtocell Aggregator                                       Core Network
         Femtocell
                                                                           Iu
                                                                           I                    3G Core
                               Security
                    Iuh                    HNB GW
                               Gateway


                    S1
                               Security     HeNB
                                                                           S1
                               Gateway       GW                                                      EPC



               Increase 3G and LTE capacity and coverage in single device
               Upgrade path from 3G to LTE
               Support for mixed subscriber base
               Leverage same IP backhaul


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Femto Services on the Horizon



           Technology
       Introduction Phase
                                                                                                            Compelling
                                                                                                            Femtozone
                                                                           Femtozone                         Services
                                                                           Data Plans
                                           Throughput and
                                             Call Quality

                            Femtozone
                           Calling Plans

                                                                                      Technology
                Coverage
                 Booster                                                           Exploitation Phase
                                                                                     p



               2006 thru 2010                                                     2010 & Beyond


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Summary


     F t    ll i d f            i
     Femtocell poised for expansion
       • Ecosystem maturity
       • Standards allowing scale


     Small cells mutating networks
       • Topolog solution to capacity challenges
         Topology sol tion     capacit
       • Key tool in the operator tool chest
                                                                             Leading
                                                                           Femtocell SW
                                                                             Vendor
     Value prop remains coverage
       • Marketing, public opinion, focus
       • Transition to data & services                                               16 LTE
                                                                                     & 26 3G
                                                                                    Customer
     LTE & Dual-Mode the opportunity
           Dual-                                                                      Wins!

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Questions & Comments
                        Todd Mersch
               Director, Product Line Management
                          www.ccpu.com




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4 Years Later: The Evolving Femto Ecosystem & Value Proposition

  • 1.
    4 Years Later:The Evolving Femto Ecosystem and Value Proposition E t dV l P iti Todd Mersch Director, Product Line Management www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 1
  • 2.
    At a Glance Over 150 Customers Worldwide Protocols LTE Femto DPI ATCA Professional Platforms Services See us in the Exhibit Area www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 2
  • 3.
    Recent News &Awards Trillium Monitoring Software • Network utilization, security/fraud info, etc. 16th LTE Win: BreakingPoint • LTE measurement & validation Mindspeed + Arraycom + Continuous p y • LTE eNodeB reference design • Accelerates deployment, reduces cost Allot S l All Selects Continuous C i • DPI / Traffic Management • Top 3 traffic mgmt vendor (Infonetics) Winner: Winner: • Femto Forum Awards Winner: • Informa LTE Awards www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 3
  • 4.
    Agenda Ecosystem Value PropPredictions www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 4
  • 5.
    Ecosystem Evolution Ecosystem www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 5
  • 6.
    How Far We’veCome… 18 Live Commercial Networks ( , ) • North America First Femtos – Now Global (EMEA, APAC) • Estimated > 60 Trials (ABI Research) Over 120 Femto Forum Members • 50+ Operators Covering 1.4B Subscribers • 65+ Technology Providers = Vibrant Ecosystem 65 Just the Beginning • 49M FAPs & 114M mobile users by 2014 (Informa) • 3G service revenue $9B per annum by 2014 (Juniper Research) www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 6
  • 7.
    Femtocell Architecture &Network Elements Internet Carrier Wireless Broadband Std Interface Core N t C Networkk Femtocell Femto GW FAP Key Components FGW Key Components Application (RRM, IM, QoS) Application (HO, AC Mgmt) (HO AC, O O Protocols Timing GPS Protocols Scaling A A & & PHY Security Middleware Security M M Radio Platform / Si Platform I/O www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 7
  • 8.
    Today’s Vibrant FemtocellEcosystem Operators www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 8
  • 9.
    Architecture Standards Progression InThe Beginning There Was > 20… IuCS IuCS Gateway Security Gateway Security Tunneled  Femto MS Tunneled  Iu MS Iub RNC Iu Concentrator C C IuPS IuPS SGS SGS Tunneled Iub N Tunneled Iu N AAA System (e.g. HSS) IuCS Diameter UMA‐based 3G  MSC GGSN IuCS IMS Call IMS Call Network  N k RAN IuPS Gn Gi Control Controller UMA‐ MS SGSN Wi based Security C Cx Gateway Gi GANC IuPS Packet Data AAA System  Wm Gateway (e.g. HSS) SGSN SIP UMA/UNC Based UMA/UNC Based IMS Based IMS Based And Then There Was One… Rapid alignment on standard • 3GPP & 3GPP2 Iu‐CS Iu CS • WCDMA, CDMA2K & LTE Gateway Security Femto MSC Iu‐h GateWay Focus now on IOT Iu‐PS • FemtoForum sponsored PlugFests FAP • OA&M, Security & Interfaces SGSN New Iu‐h www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 9
  • 10.
    Silicon Supply Explosion In The Beginning There Was One… Large, Growing, Attractive Market = Competition SoC Increased Drastic Users & Integration Cost Reductions Perf Throughput Must Preserve Software Investment www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 10
  • 11.
    Component Standards FAP Key Components Mgmt Application ( pp (RRM, IM, QoS) , , ) OA Protocol &M TR69 / TR196 Protocols Timing GPS PHY Security FRMI Radio Platform / Si Module Std FAP Silicon Optimized Diversity Innovation Costs www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 11
  • 12.
    Supply Chain Metamorphosis Iiti l Supply Chain Initial S l Ch i Components FAP OEM Tier 1 OEM Operator (SW / HW) ODM Components FAP OEM Tier 1 OEM Operator (SW / HW) Turnkey ODM Today’s Integrated Supply Chain www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 12
  • 13.
    Value Proposition Progression Value Prop www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 13
  • 14.
    It’s Not YourParents Femtocell… Residential Femtocell (2006 + ) Images Courtesy Femto Forum Everything’s a Femtocell (2009 + ) Extension of Femto • Enterprise p • Public Access Radio Interface Progress g • 2G / 2.G, 3G & LTE • Multi-Mode www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 14
  • 15.
    Revolutionizing Network Architectures M Macro T l Topology Hi Hierarchical C ll St hi l Cell Structure t Courtesy AirHop Communications Coverage Era Capacity Era 1990 2010 “2011 to 2012 is [the] relevant timeframe for launching LTE femtocells” - Managing Director, NTTDocomo www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 15
  • 16.
    Value Proposition Geographically US First Europe Coverage Coverage & Centric Performance APAC Performance www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 16
  • 17.
    Operator Marketing Coverage Dominates Marketing Message www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 17
  • 18.
    Consumer Technology Reviews “My verdict is that the AT&T MicroCell can, indeed, dramatically improve cellular reception and reliability, but it's not a silver bullet. I found it works best in truly dire coverage locations, with little or no service “400-500k 3G iPads activated since March 2010 - 75% chose largest monthly plan “Of course the sceptics amongst us can see Vodafone's evil plan from the get go Of Vodafone s go. (2GB/month)” – July 2010 They get you to pay for the shortcomings of their network while at the same time boosting your phone's capabilities in your home or office so you'll use it more… While that is probably true, the benefit here is that you don't have to move house or provider because you can't make or receive a damn call.” www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 18
  • 19.
    Predictions Predictions www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 19
  • 20.
    Beachhead Opportunity 3G LTE Act N ! A t Now! Wait… LTE = Femto’s Biggest O Opportunity www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 20
  • 21.
    Public Dual-Mode Femtocell Multi-Mode Femtocell Aggregator Core Network Femtocell Iu I 3G Core Security Iuh HNB GW Gateway S1 Security HeNB S1 Gateway GW EPC Increase 3G and LTE capacity and coverage in single device Upgrade path from 3G to LTE Support for mixed subscriber base Leverage same IP backhaul www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 21
  • 22.
    Femto Services onthe Horizon Technology Introduction Phase Compelling Femtozone Femtozone Services Data Plans Throughput and Call Quality Femtozone Calling Plans Technology Coverage Booster Exploitation Phase p 2006 thru 2010 2010 & Beyond www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 22
  • 23.
    Summary F t ll i d f i Femtocell poised for expansion • Ecosystem maturity • Standards allowing scale Small cells mutating networks • Topolog solution to capacity challenges Topology sol tion capacit • Key tool in the operator tool chest Leading Femtocell SW Vendor Value prop remains coverage • Marketing, public opinion, focus • Transition to data & services 16 LTE & 26 3G Customer LTE & Dual-Mode the opportunity Dual- Wins! www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 23
  • 24.
    Questions & Comments Todd Mersch Director, Product Line Management www.ccpu.com www.ccpu.com Confidential & Proprietary • Copyright © Continuous Computing. All Rights Reserved. 24