Small cells and femtocells are needed to address increasing mobile traffic demands and provide better coverage and service. They offer several benefits: 1) They provide more network capacity and better performance by offloading traffic from the macro network. This keeps pace with exponentially growing traffic demands. 2) They enable lower capital and operating expenses compared to traditional macro cells by reducing costs of site acquisition, installation, and power/maintenance needs. 3) They improve the user experience indoors where most data is used by enhancing service availability, data rates, and quality of service in bandwidth-constrained areas.

1. Small Cells and Femto Cells
For Future Mobile Broadband
PIMRC – 21st Annual IEEE International Symposium on Personal, Indoor
and Mobile Radio Communication
Turkey – 28th Sep 2010
Dr Shahram G Niri
Director of LTE/SAE Global Strategy & Solution – NEC Europe

2. Femto for Operators and End Users
The Requirements Of Changing Industry
Services will grow in multiplicity, diversity and richness
 New services with the Internet at the heart the services
New ecosystem & new player, new business and revenue models
More powerful and enabled devices
Users will grow in importance
 Customer delight is absolutely essential
 Adopting new habits (e.g. social media)
 More demanding on the quality, interactivity, personalisation,
Networks will grow in complexity
Walled Garden will change to Open Networks
High capacity pipes with intelligent plumbing
Self managed and automated networks Relay
Femto
Communication delivered through SW on standards / generic HW Small
Micro/Pico
Macro
Communication networks to improve in intelligence, flexibility,
automation, resilience, efficiency, speed, security, privacy, latency YET
lower delivery cost per bit/per sub/per sq km
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3. Diverged Traffic & Revenue Growth
50 Telecoms Price Development
 From Kilo (103 ) bytes to Tera (1012 ) and Zeta (1021 )
40 Mobile
bytes
Broadband
 Global ubiquitous Internet-based solution with hyper 30
Euro/Month
Connectivity
 Hundred-fold increase in network flow brought by mass 20
terminals and mass digital content, and the thousand-
fold, increase in traffic flow on mobile networks 10
0
 Users are spending more time on the phone & internet 2002 2003 2004 2005 2006 2007 2008 2009
 Average household spending on communication falls
 Consumer pay less while getting better value -> they
Traffic
pay ~30% less than 5 years ago
Complexity
 Significant growth in traffic while slow in revenue
 User experience at risk
 What do we do with a surging traffic Gap
 Is it a problem or an opportunity?
Revenue
Time
Overall cost reduction is a very critical but not at the cost
of compromising the service quality
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4. Innovation & Reform Towards More Sustainability
Significant growth in traffic while slow in revenue
Cost Vs Revenue does not add up
User experience at risk
Limit/control it (e.g. Cap in flat rate)
Bring the cost of it down (e.g. More efficient deliveries in radio, transport and core network,
Optimizations and other means of traffic handling
Turn it to revenue (e.g. Innovative solutions, New revenue streams and sources)
LTE
Bigger, Smarter & Cheaper pipe
Cheaper NW operation
Higher performance
Femto
Intelligent Indoor Solution
 New services & applications
Cost saving and revenue generation
Carrier Cloud
 New service & revenue model
 Service differentiation
Cost optimization
Lower cost & better performance and new revenue streams needed
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5. More Capacity & Better Performance by Small Cells / Femto Cells
Network Capacity offered per device V.S.
Forecast Traffic per device HSPA
30.00
3000
Specturm
Network Capacity/Forecast Traffic
25.00 MIMO More usage due to
HSPA+
Modulation & Coding 2500 improved performance
20.00
LTE with small
cells & Femto LTE &
2000
(MB/month)
HSPA
15.00
1500 LTE &
10.00 HSPA &
Femto
1000
Traffic
5.00 per
device
500
0.00 Potentia
GSM GPRS EDGE HSDPA HSPA+ LTE l traffic
0
2008 2009 2010 2011 2012 2013 2014
Spectrum is scarce and number of antennas is also limited
 LTE and HSPA link level spectrum efficiencies close to theoretical limits
 Other factors such as Coding & Modulation, MIMO and more spectrum contribute towards higher capacity –
Spectrum highest contributor!
Alternative LTE deployments (Small Cell - Pico /Femto cells) needed to avoid capacity shortfalls
Allows for faster, more flexible, cheaper and easier deployment and operation
Also improves the QoS in the network – better user experience
A constant challenge to keep ahead of future traffic increase
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5 © NEC Corporation 2009

6. Small Cells /Femto Cells Benefits
 Better availability of high data rate
 Lower CAPEX due to saving in
multimedia services
site acquisition, installation and
 Service bundling
civil work Optimised
Services  Faster data rates indoors where most of
 OPEX savings due to power, Deployment
the data traffic exists
site rental, operation manpower
 Longer terminal battery life due to lower
 Build as you grow where the
transmit power requirement
investment needed
 Fast LTE deployment
Business  Last mile broadband solution
 More capacity at reduced Performance
 Target high revenue locations
Opportunities
cost per bit  New revenue streams (indoor)
 Higher peak and cell edge  Location-specific tariffs and family
performance contracts
 Churn reduction
Indoor / Outdoor deployment
 Zero Touch, Plug&Play
NO Site acquisition necessary
Indoor / Outdoor
One-Touch and Plug&Play operation
deployment
Fan Less and Air-Cooling
Residential / SOHO
Lowe power consumption
Enterprise for indoor
Commercial Power Adaptation
private
(AC/DC)
Outdoor Public
Small Cells and Femto cells are essential part of the future mobile broadband
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7. Femto for Operators and End Users
Operators End Users
Coverage improvements Better quality and availability,
Capacity improvements Single handset & single subscription
TCO reduction / optimisation Cheaper tariff /free calls
Increased revenues (home zone and family tariff),
•New market and new services Secure broadband mobile data
•Reduce churn, improve quality and New services - Social Networking, Home
encourage more usage voice & data networking, Presence, Content Sharing,
• Increase customer loyalty, FMS
The solution/ proposition different depending on:
 Where you are (region/country),
 Which operator (mobile/hybrid/ new player, small / large, …)
 Which market (residential/ enterprise/various mobile broadband segments)
 Existing investment in high speed mobile broadband
 Cost saving on the capacity will depend on many factors
A very efficient and cost effective solution for a true mobile broadband
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8. 3GPP LTE Femto Status
R99 R4 R5 R6 R7 R8 R9 R10
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
HSPA
HSPA
IMS HSPA
UMTS
EPC
LTE/
LTE
Adv
UL
DL
+
Comm
MMTel
IMS
Rel 8 Rel 9 Rel 10
The key functionalities added
in Release 9 are:
In Rel 8, 3GPP specified UTRA • A novel Hybrid Cell concept
and LTE Femto cells. HeNB • Management of out-of-date
main functionalities that were CSG info Release 10 discussions are still
defined are: • Inbound Mobility (including ongoing.
• Architecture variants proximity reports) Major work items include:
• Closed and open access • Hybrid access control • Enhanced Mobility
control • Operation, Administration • Enhanced ICIC
• Automatic CSG selection and Maintenance for HeNB
• Outbound Mobility • Operator controlled CSG list
• RF Requirements for TDD
and FDD HeNBs
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9. Femto & LTE Femto Architecture Variants
3G Femto with Iuh LTE Femto:
1 - Dedicated HeNB-GW
LTE Femto
2 - No HeNB-GW
3GPP defines 3 options for LTE Femto, the
choice depends on several factors
 Reuse of the LTE ePC
 MME and SGW scaling and expansion LTE Femto
 Connectivity and signalling load 3 - HeNB-GW for C-Plane
 TNL processing and functionality
 3G Femto migration
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10. LTE deployment with Small Cells & Femto Cells
macro
 High cost of outdoor/macro radio
 Data traffic /revenue mainly in hotspots & in-building Macro LTE deployment drivers
Pico
 2G and 3G networks (already provide macro coverage)
Femto
 Invest where the traffic and hence the revenue is (Residential
 Improve your overall data traffic capacity and performance /SME) 4
2
1
 Fast to deploy, cheap and easy to install and operate 3
 Overlay LTE Network - Start small and build as your number of
users / traffic increases 1 Capacity Driven
Hotspots and high traffic zones
 LTE on 2.6 Ghz initially for high data traffic hot spots
 Address indoor coverage and capacity with LTE Femto 4
 Use macro 800 Mhz for LTE wide area coverage 3
 Improve macro (HSPA) coverage by overflowing traffic to LTE
2
1
2G/3G HSPA/LTE (800 Mhz) 2 New Business Driven
2G&3G for ubiquitous voice & Femto and hotspot islands
HSPA mainly data
LTE (1800/2.6 Mhz)
2G&3G for Voice & HSPA for
LTE 1
ubiquitous data & LTE for High
data with small cells and Femtos 3
LTE 4
2G / 3G for voice , HSPA for 2
ubiquitous data & LTE for High Femto
2.6
data 2.6
Mhz
Mhz Coverage Driven
LTE Femto 3
Macro deployment
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11. Concluding Remarks
LTE as a cost effective and future proof technology is a key to future
mobile broadband
 Capacity and cost will remain a challenge in the future mobile
broadband
New innovative solution, lower TCO, flexibility and scalability in the
deployment, simplicity and ease of operation will be key to the success
of mobile broadband
An overlay network with LTE small cells and LTE Femto deployment is
the way forward
Small cells and Femto cells a must in meeting capacity and
performance demand in future mobile broadband
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