Femtocell Market Status...UMTS and end-to-end LTE femtocell support • March 2010: First CDMA...

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Femtocell Market Status

Femtocells have arrived and are shaping up into a key tool for mobile broadband service delivery

Andy GermanoVice Chairman, Femto Forumandy@femtoforum.orgwww.femtoforum.org

VendorsCarriers

The Femto Forum Aims

• Promoting & enabling femtocells• Not-for-profit, founded in 2007• Independent, Inclusive, International

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77 providers of femtocell technology covering all aspects of the ecosystem

58 operators covering over 1.5 billion mobile subscribers – 33% of global total

End to endsystem providers

NetworkElements

Componentsand So ware

Otherenablers

Products

Why Femtocells?

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Explosion of internet connected devices

Exponential growth of mobile data traffic

Source: Signals Research Group

Home

Office

Out of home / officeOn the move

Source: Informa

Traffic increasingly indoors

“Wireless data traffic on the AT&T network has grown more than 5,000 percent over the past three years...We see this usage trend continuing in the years to come.”- John Donovan, AT&T CTO, 14 Feb 2010

“ three per cent of the ...smartphone users generate 40 per cent of wireless data traffic”- Ralph de la Vega, AT&T CEO , December 2009

“The O2 network has seen an 18-fold increase in

data carried over the network in the last year

and traffic continues to double every three

months.” Matthew Key, O2, November 2009

Vodafone expects network traffic to double year-on-year. 7% of cell sites hitting congestion – defined as up to 90% utilisation -in the busiest hour.- Vitorio Colao, Vodafone CEO, February 2010

About Femtocells• Simple, low cost, easy-to-install cellular access point for homes

(& offices & metro areas)• Delivering fast, reliable service to standard phones over licensed spectrum• Supported in 3G and next-generation standards by 3GPP, 3GPP2, WiMAX

Forum, Broadband Forum

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The shape of mobile networks has changed...

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Cells in US mobile networks

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Deployments up ~3x in 12 months

Rapid future growth expected• ABI Research estimates > 60

ongoing operator trials• Further deployments expected

shortly• Significant growth reaching

just under 49 million femtocell access points (FAP) in the market by 2014 and 114 million mobile users during that year Source: Informa

• Healthy growth predicted with femtocell unit sales reaching 25 million in 2014.

• Femtocell based 3G service revenue $9bn per annum by 2014 Source: Juniper Research Fig 2. Femtocell access point and user forecasts – Jan 2010

Fig 1. Femtocell worldwide trial activity

Consumer Research – Key findings

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• Femto technology has wide range of applications• Cost-effective deployment in offices, high-traffic or low coverage locations• Enterprise femtocells: overlay currently, integrated in future • Metrozone: capacity offload for rapid-response LTE service• Rural and developing markets via wireless backhaul

Macrocells – wide area coverage and mobility

Femtocells aren’t only for home

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Enterprise femtocells

Domestic femtocells

Outdoor femtocells

Standards – Completing the Picture

•April 2009: Release 8 provided end-to-end UMTS standard, with Broadband Forum management data model•April 2010: Release 9 provides feature enhancements for UMTS and end-to-end LTE femtocell support

• March 2010: First CDMA femtocell standard announced by 3GPP2/CDG/Femto Forum

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• June 2010: WiMAX femtocell standard publication announced by WiMAX Forum and Femto Forum

• Femtocells now supported by all major mobile technologies(c) Femto Forum Ltd. 2010 - All rights reserved

Further Information

12available from www.femtoforum.org

Upcoming Events

CES, Las Vegas, January 2011MWC, Barcelona, Feb 2011CTIA, Orlando, FL, March 2011

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Quarterly Plenary Events in USA, Europe & Asia for Members

Summary

• Femtocells address immediate needs• Femtocells are here now• Femtocells are growing fast• Femtocells provide a unique platform for mobile services

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“Delivering a great mobile experience to one billion users via

femto technology”