Embedding LTE into Netbooks &
          Consumer Electronics
                             Manish Singh
               Vice President, Product Line Management

www.ccpu.com                                        Confidential and Proprietary
At a Glance

                                              Our Customers = Our Success


               Protocol Software



                     LTE
                     DPI
                   Femtocell


    ATCA &                     Professional
  cPCI Hardware                  Services




                            www.ccpu.com
                   See our display in the Exhibit Area
www.ccpu.com                                                  Confidential and Proprietary   2
Mobile Broadband: Huge Demand, Huge Challenges
 Mobile voice revenues saturating

 Mobile broadband driving growth
     Traffic up 130% per year
     Doubling every 9 months!

 BUT new base stations & spectrum
                                                                                               Source: IDC
adding only 20% capacity / year
                                                                      Traffic
 Video is the true network killer app                                                  Revenues &
                                                                                       Traffic Gap
     Will bring mobile networks to its knees!                                           Widening
     Data streams are no longer bursty          Voice Era
        Ex: Peer-to-peer (P2P) & streaming                                                Revenues

                                                                                Data Era

  The “Exa-Flood” is coming…
                                                Sources: Cisco Visual Networking Index, 2009; Pyramid Research

www.ccpu.com                                                              Confidential and Proprietary       3
What Is Driving this Growth?
    Demographics                Devices                 Demand
                                                    Internet Applications
    Internet Generation   Mobile Internet Devices
                                                          & Content




www.ccpu.com                                                 Confidential and Proprietary   4
LTE Devices
       Good news – first LTE devices have appeared
               Data only
               Example: Samsung’s LTE dongle
               2.6GHz
               3GPP R8



       But, what about…
               Voice + Data
               Spectrum Aspects
               Backward Compatibility




www.ccpu.com                                     Confidential and Proprietary   5
Challenges
       Voice + Data – Voice support is imminent
               Leverage converged EPC
               Voice over LTE: fragmented
                  Circuit Switched Fallback
                  VoLGA
                  IMS-based VoIP
       Radio Aspects
               Spectrum harmonization, or lack thereof
                  2.6GHz, 700MHz, 900MHz / 1800MHz Re-farming…
               MIMO
                  2x2, 4x4?
                  Battery Life
       Global Roaming
               Nationwide LTE coverage will have a long way to come
               Multiple legacy standards – GSM, 3G, HSPA, CDMA2K…
               FDD vs. TDD?

www.ccpu.com                                                          Confidential and Proprietary   6
Opportunities

     Smartphone, Netbooks, Notebooks…




   Smartphones                   Netbooks                     Notebooks




     Cameras, eReaders, Med Devices, Gaming, Navigation…



                                               Personal
         IP Cameras   eReaders              Medical Devices     Gaming Consoles      Navigation Systems



www.ccpu.com                                                                 Confidential and Proprietary   7
Potential
                                                 Connected Devices                                   M2M Connectivity
                      12                                                                                Today, predominantly WiFi
                                                                              th                        Coverage limited to HotSpots
                      10                                                row
                                                                 ic   eG                             Consumer Opportunity
                                                               ev
Relative Comparison




                       8
                                                         d   D                                          Social networking phenomenon
                                                   e cte                                                   Facebook, YouTube…
                                               n
                                            on
                       6
                                          C                                                             Wireline on the decline
                       4          3 .5x                                                                    Emergency, home security…

                       2                                                                             Enterprise Opportunity
                                                                                                        Operational efficiencies
                       0                                                                                   Smart meters, tracking...
                                   2009                       2015                       2020
                                                              Year
                                                                                                        Inventory management
                           Connected Devices Legend:
                                                                                                     BUT, there are challenges
                                 Consumer Electronics – Cameras, eReaders, Gaming Consoles,
                                 Personal Medical Devices, Smart Meters, Retail PoS terminal, etc.      Security – embedding SIM
                                 Traditional Mobile Devices – Cellphones, Smartphones, Netbooks,        Indoor coverage
                                 Data Cards, Dongles
                                                                                                        Cost!! Cost!! Cost!!
                      Sources: various analyst reports, Continuous Computing estimates

                       www.ccpu.com                                                                                    Confidential and Proprietary   8
Business Model Complexity

      Retailers   Manufacturers   Today’s Business Chain
                                    Consumer      Retailer          Manufacturer
                                    Mostly, pay one-time

                                  Embedding LTE in consumer device
                                    New entrant: Operator
                                    Recurring business model opportunity
                                    Netbooks already setting the trend
                                    Pay usage-based, application-based

                                  Addressing the cost challenge
                                    Operator subsidizes devices, OR
      Operators    Consumers
                                    Mfgr subsidizes & shares revenue

                                  Unified Billing is a must
  Consumer Device Ecosystem         User might have multiple devices
www.ccpu.com                                                 Confidential and Proprietary   9
Threat
     Apple sold 7.4M iPhones in Q3
     Intel reports blowout Q3 on strong mobile business; Atom rev up 14%
     AT&T sells Nokia netbooks for $300 with 2 year contract
     Verizon’s CTO: “Metered broadband is the future”

  And…                                     Operators need…

               Traffic
                         Revenues &                                  Femtocells =
                         Traffic Gap                                  Cheapest
                          Widening                                     Bit Pipe

Voice Era
                           Revenues

                     Data Era

                                            LTE = Fastest Bit Pipe                  DPI = Smartest Bit Pipe


                                Network Infrastructure Meltdown
www.ccpu.com                                                                        Confidential and Proprietary   10
LTE Delivers “Fast Pipes”
                                                                   Significantly increased data rates
      E-UTRAN Architecture
                                                                      ~100Mbps down, ~50Mbps up
                                                                      Low latency for real-time apps
                                                                   We support end-to-end LTE
MME / Serving GW            MME / Serving GW                          EPC: MME, SGW, PDN solutions
                                                                      RAN: Trillium eNodeB, HeNodeB
       S1                          S1
                                                    S1                    S1
                              S1
            S1




                                               S1

                       X2

                X2
eNodeB                        X2    eNodeB               HeNodeB           HeNB Gateway




                                                                                     S1
                                                                                S1
                     eNodeB                                           HeNodeB         HeNodeB

                                   Spectral Efficiency Improved 4X
 www.ccpu.com                                                                             Confidential and Proprietary   11
Femtocells Deliver “Cheap Pipes”
Enables new LTE rollout strategy
                                                         Femtocell Solutions
  New: “Build-as-they-come”
  Old: “Build-and-they-will-come”           Offloads traffic     Provides cell coverage indoors
                                            from macro           Low-power & self-configuring to
                                            network              minimize interference
Pricing: enables combo package deal                              Aligns with 3G / LTE standards
  Ex: Femto bundled with netbook                                 Leverages users’ broadband

  Heavy data traffic offloaded from macro

                 +
Trillium Femtocell software
  Optimized for small memory footprint
  Optimized for high performance
                                            Macro network                        LTE femtocell
                                                               LTE Devices
We have 16 Femtocell customer wins!          base station                      converged device


                   Spectrum Re-use Improved 1,000,000X
 www.ccpu.com                                                           Confidential and Proprietary   12
DPI Delivers “Smart Pipes”




               Still Spectrum Limited; Traffic Management Essential
www.ccpu.com            DPI = Deep Packet Inspection, P2P = Peer-to-Peer   Confidential and Proprietary   13
Key DPI Applications for LTE
1. Traffic Management
     Netbooks will drive P2P traffic   LTE is spectrum limited
     Internet video = Network Killer   Rate limit, throttle traffic
     Network Congestion = Poor QoE     Application aware, user aware


2. Adaptive Traffic Shaping
     Dynamic bandwidth allocation      Not all cell sites loaded equally
     RAN-aware Shaper                  Loading changes with time of day


3. Internet Offload (DPI)
     Offload traffic to the internet   Lower CapEx in wireless core
     Offloading at network’s edge      10 DPI customer wins!

 www.ccpu.com                                           Confidential and Proprietary   14
Dominant Infrastructure Trends
  Hardware = Cost Reduction
    Cost per bit over the life of a project
    Implications
               Standards = ATCA
               Outsourcing
               Commoditization


  Software = Revenue Growth
    Portability & scalability
    Implications
               Open-ness
               Cleverness
               Differentiation

www.ccpu.com                                  Confidential and Proprietary   15
ATCA 40G = Lower Cost / Bit

       40G ATCA essential for EPC to lower cost / bit

       40G ATCA = Scalability + Reliability + Performance


 EPC MME                                      EPC SGW / PGW
        Processing per session                     Processing per packet
        High Availability                          Load Balancing
        Multi-threaded S1-AP, eGTP-c…              Fast Path SCTP, eGTP-u, MIP…
        Encryption support for Snow3G…             Deep Packet Inspection (DPI)

       Continuous Computing enables wide range of LTE products
       From … “Smallest All-in-One EPC”…   …to “Highly Scalable MME / SGW”




www.ccpu.com                                                        Confidential and Proprietary   16
Summary
       Mobile broadband driving growth

       First LTE dongles have arrived                          We can help!
                                                               We can help!
               Data only, voice support to follow

       Next big opportunity: embedding LTE in consumer electronics
               To unlock this opportunity, cost must go down

       LTE well suited for netbooks & notebooks
               Significant impact on network traffic                We deliver
                                                                     We deliver
                                                               Software Solutions
                                                                Software Solutions
       Traffic Management essential for QoE                 for eNodeB & Femtocells
                                                             for eNodeB & Femtocells
               Network capacity limited by spectrum                     ++
                                                          Integrated ATCA Platforms
                                                           Integrated ATCA Platforms
       Cost / bit must go down                                   for FGW & EPC
                                                                  for FGW & EPC
               40G ATCA = lower cost / bit                     (MME, SGW, PGW)
                                                                (MME, SGW, PGW)

www.ccpu.com                                                         Confidential and Proprietary   17
Questions & Comments
                            Manish Singh
                Vice President, Product Line Management

               www.ccpu.com/products/trillium/lte.html
www.ccpu.com                                        Confidential and Proprietary

Embedding LTE into Netbooks & Consumer Electronics

  • 1.
    Embedding LTE intoNetbooks & Consumer Electronics Manish Singh Vice President, Product Line Management www.ccpu.com Confidential and Proprietary
  • 2.
    At a Glance Our Customers = Our Success Protocol Software LTE DPI Femtocell ATCA & Professional cPCI Hardware Services www.ccpu.com See our display in the Exhibit Area www.ccpu.com Confidential and Proprietary 2
  • 3.
    Mobile Broadband: HugeDemand, Huge Challenges Mobile voice revenues saturating Mobile broadband driving growth Traffic up 130% per year Doubling every 9 months! BUT new base stations & spectrum Source: IDC adding only 20% capacity / year Traffic Video is the true network killer app Revenues & Traffic Gap Will bring mobile networks to its knees! Widening Data streams are no longer bursty Voice Era Ex: Peer-to-peer (P2P) & streaming Revenues Data Era The “Exa-Flood” is coming… Sources: Cisco Visual Networking Index, 2009; Pyramid Research www.ccpu.com Confidential and Proprietary 3
  • 4.
    What Is Drivingthis Growth? Demographics Devices Demand Internet Applications Internet Generation Mobile Internet Devices & Content www.ccpu.com Confidential and Proprietary 4
  • 5.
    LTE Devices Good news – first LTE devices have appeared Data only Example: Samsung’s LTE dongle 2.6GHz 3GPP R8 But, what about… Voice + Data Spectrum Aspects Backward Compatibility www.ccpu.com Confidential and Proprietary 5
  • 6.
    Challenges Voice + Data – Voice support is imminent Leverage converged EPC Voice over LTE: fragmented Circuit Switched Fallback VoLGA IMS-based VoIP Radio Aspects Spectrum harmonization, or lack thereof 2.6GHz, 700MHz, 900MHz / 1800MHz Re-farming… MIMO 2x2, 4x4? Battery Life Global Roaming Nationwide LTE coverage will have a long way to come Multiple legacy standards – GSM, 3G, HSPA, CDMA2K… FDD vs. TDD? www.ccpu.com Confidential and Proprietary 6
  • 7.
    Opportunities Smartphone, Netbooks, Notebooks… Smartphones Netbooks Notebooks Cameras, eReaders, Med Devices, Gaming, Navigation… Personal IP Cameras eReaders Medical Devices Gaming Consoles Navigation Systems www.ccpu.com Confidential and Proprietary 7
  • 8.
    Potential Connected Devices M2M Connectivity 12 Today, predominantly WiFi th Coverage limited to HotSpots 10 row ic eG Consumer Opportunity ev Relative Comparison 8 d D Social networking phenomenon e cte Facebook, YouTube… n on 6 C Wireline on the decline 4 3 .5x Emergency, home security… 2 Enterprise Opportunity Operational efficiencies 0 Smart meters, tracking... 2009 2015 2020 Year Inventory management Connected Devices Legend: BUT, there are challenges Consumer Electronics – Cameras, eReaders, Gaming Consoles, Personal Medical Devices, Smart Meters, Retail PoS terminal, etc. Security – embedding SIM Traditional Mobile Devices – Cellphones, Smartphones, Netbooks, Indoor coverage Data Cards, Dongles Cost!! Cost!! Cost!! Sources: various analyst reports, Continuous Computing estimates www.ccpu.com Confidential and Proprietary 8
  • 9.
    Business Model Complexity Retailers Manufacturers Today’s Business Chain Consumer Retailer Manufacturer Mostly, pay one-time Embedding LTE in consumer device New entrant: Operator Recurring business model opportunity Netbooks already setting the trend Pay usage-based, application-based Addressing the cost challenge Operator subsidizes devices, OR Operators Consumers Mfgr subsidizes & shares revenue Unified Billing is a must Consumer Device Ecosystem User might have multiple devices www.ccpu.com Confidential and Proprietary 9
  • 10.
    Threat Apple sold 7.4M iPhones in Q3 Intel reports blowout Q3 on strong mobile business; Atom rev up 14% AT&T sells Nokia netbooks for $300 with 2 year contract Verizon’s CTO: “Metered broadband is the future” And… Operators need… Traffic Revenues & Femtocells = Traffic Gap Cheapest Widening Bit Pipe Voice Era Revenues Data Era LTE = Fastest Bit Pipe DPI = Smartest Bit Pipe Network Infrastructure Meltdown www.ccpu.com Confidential and Proprietary 10
  • 11.
    LTE Delivers “FastPipes” Significantly increased data rates E-UTRAN Architecture ~100Mbps down, ~50Mbps up Low latency for real-time apps We support end-to-end LTE MME / Serving GW MME / Serving GW EPC: MME, SGW, PDN solutions RAN: Trillium eNodeB, HeNodeB S1 S1 S1 S1 S1 S1 S1 X2 X2 eNodeB X2 eNodeB HeNodeB HeNB Gateway S1 S1 eNodeB HeNodeB HeNodeB Spectral Efficiency Improved 4X www.ccpu.com Confidential and Proprietary 11
  • 12.
    Femtocells Deliver “CheapPipes” Enables new LTE rollout strategy Femtocell Solutions New: “Build-as-they-come” Old: “Build-and-they-will-come” Offloads traffic Provides cell coverage indoors from macro Low-power & self-configuring to network minimize interference Pricing: enables combo package deal Aligns with 3G / LTE standards Ex: Femto bundled with netbook Leverages users’ broadband Heavy data traffic offloaded from macro + Trillium Femtocell software Optimized for small memory footprint Optimized for high performance Macro network LTE femtocell LTE Devices We have 16 Femtocell customer wins! base station converged device Spectrum Re-use Improved 1,000,000X www.ccpu.com Confidential and Proprietary 12
  • 13.
    DPI Delivers “SmartPipes” Still Spectrum Limited; Traffic Management Essential www.ccpu.com DPI = Deep Packet Inspection, P2P = Peer-to-Peer Confidential and Proprietary 13
  • 14.
    Key DPI Applicationsfor LTE 1. Traffic Management Netbooks will drive P2P traffic LTE is spectrum limited Internet video = Network Killer Rate limit, throttle traffic Network Congestion = Poor QoE Application aware, user aware 2. Adaptive Traffic Shaping Dynamic bandwidth allocation Not all cell sites loaded equally RAN-aware Shaper Loading changes with time of day 3. Internet Offload (DPI) Offload traffic to the internet Lower CapEx in wireless core Offloading at network’s edge 10 DPI customer wins! www.ccpu.com Confidential and Proprietary 14
  • 15.
    Dominant Infrastructure Trends Hardware = Cost Reduction Cost per bit over the life of a project Implications Standards = ATCA Outsourcing Commoditization Software = Revenue Growth Portability & scalability Implications Open-ness Cleverness Differentiation www.ccpu.com Confidential and Proprietary 15
  • 16.
    ATCA 40G =Lower Cost / Bit 40G ATCA essential for EPC to lower cost / bit 40G ATCA = Scalability + Reliability + Performance EPC MME EPC SGW / PGW Processing per session Processing per packet High Availability Load Balancing Multi-threaded S1-AP, eGTP-c… Fast Path SCTP, eGTP-u, MIP… Encryption support for Snow3G… Deep Packet Inspection (DPI) Continuous Computing enables wide range of LTE products From … “Smallest All-in-One EPC”… …to “Highly Scalable MME / SGW” www.ccpu.com Confidential and Proprietary 16
  • 17.
    Summary Mobile broadband driving growth First LTE dongles have arrived We can help! We can help! Data only, voice support to follow Next big opportunity: embedding LTE in consumer electronics To unlock this opportunity, cost must go down LTE well suited for netbooks & notebooks Significant impact on network traffic We deliver We deliver Software Solutions Software Solutions Traffic Management essential for QoE for eNodeB & Femtocells for eNodeB & Femtocells Network capacity limited by spectrum ++ Integrated ATCA Platforms Integrated ATCA Platforms Cost / bit must go down for FGW & EPC for FGW & EPC 40G ATCA = lower cost / bit (MME, SGW, PGW) (MME, SGW, PGW) www.ccpu.com Confidential and Proprietary 17
  • 18.
    Questions & Comments Manish Singh Vice President, Product Line Management www.ccpu.com/products/trillium/lte.html www.ccpu.com Confidential and Proprietary