The webinar provided an update on the growing small cell market. Key points included: 1) Femtocells are becoming more established, with forecasts that there will be more femtocells deployed globally than traditional macrocell base stations by the end of 2012. 2) The small cell market is expected to experience rapid growth over the next few years, with small cells projected to make up 88% of all base stations globally by 2016. 3) Recent industry reports and operator announcements indicate increasing deployments of small cells in the hundreds of thousands by single operators, demonstrating the scalability of small cell solutions.

1. www.smallcellforum.org

2. A Webinar update on the small cell market
Andy Germano, Vice Chairman
andy@smallcellforum.org
www.smallcellforum.org
© Small Cell Forum Ltd 2012

3. The Small Cell Forum
Aims
67 operators covering 1.99 billion mobile 74 providers of small cell technology
subscribers – 34% of total representing all parts of the ecosystem
www.smallcellforum.org © Small Cell Forum Ltd 2012 3

4. Small Cell Market Status
• Report published today
• Available for free download from
www.smallcellforum.org
• Comprehensive overview of current and
forecast deployments of
• Femtocells
• Picocells
• Microcells
• Metrocells
www.smallcellforum.org © Small Cell Forum Ltd 2012 4

5. Femtocells have become established and are
growing strongly
60
In the last 3 months:
50 Deployments 52 53 • Vodafone Portugal
Commitments 43 44 • Hutchison 3G in UK
40
34 36 37
40 • Free in France
30 30 31
24 • Regional US operator Mosaic
20 16 17 18
12 13 19 Telecom
68 9
10 • World’s first LTE femtocell
0 deployment by SK Telecom
Q3 2009 2010 • Deployment commitments
Q1 Q2 2010
Q3 2010 2010
Q4 Q1 2011 from Telefónica-O2 and Telenor
Q2 2011 2011
Q3 Q4 2011
Q1 2012 Group
www.smallcellforum.org © Small Cell Forum Ltd 2012 5

6. More Femtocells than Macrocells
• June 2011: There were more 3G femtocells than 3G macrocells
• By the end of 2012, there will be more femtocells than
macrocells for all technologies combined
• Clear evidence that the shape of mobile networks has changed
70,000,000
60,000,000
Femtocells
50,000,000
40,000,000
Macrocells
30,000,000
20,000,000
10,000,000
-
2011 2012 2013 2014 2015
www.smallcellforum.org © Small Cell Forum Ltd 2012 6

7. Small Cells Will Make Up Almost
90% of All Base Stations by 2016
• 20x growth in small cells from 3.2 million in 2012 to 62.4 million by
2016
• Small cells will then constitute 88% of all
base stations globally
• Femtocells will continue to dominate in units
(95%) 2.5 million in 2012 to 59 million in 2016 – a 24x increase
• Public access small cells will evolve from traditional
designs to next generation models based on femto
technology
“Small cells are set to drastically reshape mobile networks over the next few
years as they become comfortably the most common form of base station
worldwide. “
- Dimitris Mavrakis, Informa Telecoms & Media
www.smallcellforum.org © Small Cell Forum Ltd 2012 7

8. Recent Theme: Operators talking up
deployments in the hundreds of thousands
• At least four operators with deployments in the hundreds of
thousands in a single nation
• “More than 500k deployed”
• “Hundreds of thousands of registered users”
• “Expected to surpass 1M”
• Demonstrating scalability and ongoing positive customer feedback
• Paves the way to deployments in the millions
www.smallcellforum.org © Small Cell Forum Ltd 2012 8

9. Recent Theme: Free Femtocell Offers
Driven by Competitive Markets
• Femtocell services are currently available in 23 countries around
the world, 43% of which have multiple operators offering the
technology
• The majority of countries with competitive consumer femtocell
offerings include at least one operator who offers the devices free of
charge.
• Currently, subscribers in France, Japan, Russia and the United
States have access to free femtocells
www.smallcellforum.org © Small Cell Forum Ltd 2012 9

10. Recent Theme: CDMA femtocells
moving on up
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11. The advent of femtocells has created a much
broader opportunity than residential
• Standards, chipsets, know-how and other
technology elements delivering scalable licensed-
spectrum access points for mobile services
• Developed originally for residential
applications, where consumer electronics volumesFemto Technology
enable and require a customised, highly intelligent
approach
• So why are small cells different with femtocell
technology?
Key attributes:
• Scalability
• Automated configuration and optimisation
• Rapid, cost effective deployment
• Efficient use of available backhaul
• High capacity density and user experience
www.smallcellforum.org © Small Cell Forum Ltd 2012 11

12. Applications of small cells
etc!
User deployed Enterprise / SI or Operator deployed Operator /
operator deployed community
deployed
Shared backhaul Shared or dedicated Dedicated wired or Dedicated wired or
backhaul wireless backhaul wireless backhaul
An increasingly wide range of femto-enabled small cells:
Small Cell Forum works to enable and promote all of these
www.smallcellforum.org © Small Cell Forum Ltd 2012 12

13. The Small Cell Market Opportunity
• ABI Research:
• 4.3 million small cells (including femtocells, picocells and
microcells) will be shipped in 2012
• Rising to 36.8 million shipments in 2016, valued at $20.4 billion
• Currently: residential and enterprise models dominate small cell
shipments with 62% and 30% respectively.
• By 2016, indoor small cells will be 94% of total shipments, but
outdoor small cells will make up 64% of the revenue.
www.smallcellforum.org © Small Cell Forum Ltd 2012 13

14. Small cells of all types form an
integral part of modern mobile
networks
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15. Our scope – illustrated
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16. Burgeoning Operator Interest in
LTE Small Cells
• 17 vendors adopted Forum LTE APIs
• Incl. key silicon vendors: TI, Broadcom, Mindspeed
• Already in commercial deployment by SK telecom
www.smallcellforum.org © Small Cell Forum Ltd 2012 16

17. The chips are up…
• Chip with the right functionality and cost-effectiveness are a key
enabler for LTE femtocells/small cells
• Femto Forum Publishes APIs to Advance LTE Femtocell Development
(October 2010)
• Seventeen vendors adopt Femto Forum LTE small cell APIs to meet
demand from operators including China Mobile, Vodafone, SK Telecom
and NTT DoCoMo (7th Feb 2012)
• Included in the SK Telecom commercial deployment of LTE femtocells
www.smallcellforum.org © Small Cell Forum Ltd 2012 17

18. The Small Cell Apps Opportunity
• Consumer research says almost 60% of
consumers find femtocells either very or
extremely appealing
• 72% of consumers who found
femtocells appealing were very
interested in at least one advanced
femtocell service and half of these were
willing to pay $4.99/month for their
single favourite service or $9.99/month
for a bundle of their favourite three
• What needs to be done to enable this
huge opportunity for operators and
consumers?
• Specifications
• Engagement with developers
www.smallcellforum.org © Small Cell Forum Ltd 2012 18

19. Small Cell Apps: So Far…
• March 2011:
• Small Cell Forum published first APIs that define how to
create and write new mobile applications based on small
cell technologies.
• Also worked with Broadband Forum who published
management specs to enable operator management of
small-cell APIs
• Our APIs are already being implemented in operator-
driven services (e.g. Telecom Italia)
• 22 Feb 2012: Small Cell Forum announced a cooperation
agreement with the Open Mobile Alliance(OMA), an
international specifications setting body, to develop open API
standards for small cells on a global scale
www.smallcellforum.org © Small Cell Forum Ltd 2012 19

20. Small Cell Forum Launches Mobile
Developer Community
Now giving wider developer community
tools to start creating apps
Forum providing suite of tools and resources to help
developers create mobile applications that take
advantage of small cells
• Developer Forum
• APIs
• Application specifications
• Tutorials
• Code Samples
• Information on use cases and wider small cell
opportunity
• APIs have already been used by Telecom Italia and
Alcatel-Lucent to develop a museum application that
provides multimedia information about specific exhibits in
closest proximity to the user
www.smallcellforum.org © Small Cell Forum Ltd 2012 20

21. Small Cell Apps: Developer Forum
www.smallcellforum.org/developers/
www.smallcellforum.org © Small Cell Forum Ltd 2012 21

22. Small Cell Forum Announced GSMA OneAPI
Support & Launches Developer Tools
• Availability of a hosted small cell emulator
• For use by mobile developers globally
• Inclusion of FemtoZonal Awareness API in GSMA’s OneAPI
• SOAP and Restful interfaces including JSON (HTML/HTTP)
“By giving developers a simple, standard way of leveraging operators’ network information,
they can build a new generation of mobile applications that incorporate capabilities such as
messaging, payment systems and location-based data. The addition of small cell information
can extend the reach and the attractiveness of location-based services,”
said Graham Trickey, Senior Director, GSMA.
www.smallcellforum.org © Small Cell Forum Ltd 2012 22

23. Potential for Integrated
Small Cell / Wi-Fi Networks
• Small cells (licenced spectrum) and Wi-Fi are
complementary
• Products already exist with both
• But by integrating in the network as well as the
access point, the benefits are greater still
• Data can be seamlessly shifted between
the cellular and Wi-Fi networks based on the
user, type of service, network congestion or
quality of service requirements etc.
• More advanced implementations allow both
small cell cellular and Wi-Fi to be used
simultaneously for different traffic flows or
to create a single large pipe for HD media or to
create a highly resilient connection.
Small cells + Wi-Fi
= smart, fine grained offload
www.smallcellforum.org © Small Cell Forum Ltd 2012 23

24. Femtocells established in
SoHo/SMB: but can they scale to
serve LARGE enterprises ?
Femtocell deployments for small businesses are growing rapidly -
demonstrates that they can also be deployed successfully in
enterprises that require multiple-femtocells as long as the right
measures are taken
• Today publishing a guide to enterprise femtocell deployment
best practice
• Enterprise femtocells are now included in almost a third of
operator femtocell offerings
• Potential challenges in larger buildings: larger number of
users and coverage area; RF interactions between femtocells;
mobility and handover from one femtocell to another; large
RF variations inside buildings.
• Conducted detailed analysis, simulations and over-the-air
tests and arrived at a consensus between operators and
vendors surrounding best practice for resolving these
challenges
• Need to optimise handover procedures, but both soft and
hard handover approaches are viable
• Procedures to mitigate these issues can be performed
automatically, with the help of a simple walk test by an IT
technician.
www.smallcellforum.org © Small Cell Forum Ltd 2012 24

25. Public access small cells
• White paper published, focusing on 3G small cells
in outdoor environments
• Demonstrates that interference management
techniques allow small cells and macrocells to
coexist in the same frequencies without causing
undue interference
• Shows that even with conservative
deployments, small cells could offload the majority
of subscribers in busy areas, reducing network
load and improving user experience
• One small cells per macro: 21% of users
offloaded
• Four small cells per macro: 56% offloaded
• Ten small cells per macro: 75% offloaded
• Also covers other critical issues:
• Deployment model
• Backhaul
• Handover
www.smallcellforum.org © Small Cell Forum Ltd 2012 25

26. But that is not all…
• Substantial increase in typical data throughput for all
users, whether connected to the small cells or macrocells
• Great opportunity for increasing user satisfaction and a strong
motivation to install small cells even outside of capacity-limited
areas
600% 523%
500%
% increase in 400%
315%
median
300% 246% All Users
throughput over
macrocells 200% 138% Macro Users
alone 100% 58% 31%
0%
1 4 10
Small cells per macrocell
www.smallcellforum.org © Small Cell Forum Ltd 2012 26

27. In summary
• Femtocells are well established:
• There will be more femtocells than conventional base stations by
the end of this year
• Femto technology is powering the wider set of small cells
• Nearly 90% of base stations globally will be small cells by 2016
• Combined small cell / Wi-Fi networks provide an opportunity for a
rich, fine-grained traffic management and offload
• Femtocells scale to serve the largest enterprises
• Developers can now access a rich set of resources to develop small
cell-enabled apps
Delivering a great mobile experience to billions of
users with small cell technology!
www.smallcellforum.org © Small Cell Forum Ltd 2012 27

28. www.smallcellforum.org