Femtocells – Opportunities and Challenges (DRAFT)

Femtocells – Opportunities and Challenges

Chand GundechaCDG Technology Forum Wednesday, May 2, 2007

Motorola IncGlobal Marketing & Strategy,Motorola Networks & Enterprise BusinessMobile Telephone (312) 307-0677E-mail: [email protected]

mailto:[email protected]

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

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1 FMC, Seamless Mobility, Femtocell Overview

Market Drivers

Femtocell Evolution

Challenges and Opportunities

Summary

Agenda


FMC, Seamless Mobility and Femtocell -Overview

− Femtocell - a disruptive technology that can create new business opportunities for Wireless Operators

− Motorola has a broad portfolio of solutions and services in FMC/Seamless Mobility areas

− UMA is the first FMC/Seamless Mobility application− Numerous UMA commercial systems and trials

− Other FMC applications enabled by Motorola IMS− IMS VCC trials underway

− Initial Femtocell focus with UMA with evolution to IMS/SIP


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FMC, Seamless Mobility, Femtocell Overview

Market Drivers

Femtocell Evolution


Summary

Agenda

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91

232

139

175

206

254

Sou

rce:

Inf

onet

ics

-3Q

05

DSL and Cable Subscriber Growth By Region

3350

63 7485 9425

43

56

6674

79

30

40

48

54

58

61

9

12

16

20

6

3

0

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008

Milli

ons

of S

ubsc

riber

s

Asia EMEA NA LAC

Femtocell Market DriversProliferation of Broadband Subs Services


Femtocell Market DriversCellular Subscribers Keep Growing but there

are coverage issues in certain places…Homes, Hotels Basements

Cellular Subscriber Growth By Region

538 664 807 984 1,125 1,248

551688

892

1,016

1,1191,195

127

175

237

274

308

334

222

245

262

275

171

195

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2003 2004 2005 2006 2007 2008Cum

ulat

ive

Sub

scrib

ers

(M)

Sou

rce:

EM

CFe

brua

ry, 2

006

Asia EMEA NA LAC


Femtocell Market Drivers~120M WiFi, Dual Mode Handsets by 2010

Sou

rce:

AB

I Dev

ices

For

ecas

t

Dual Mode WIFI Cellular

WIFI VoIP

2006 2007 2008 2009 2010

100

40

20

60

Femtocell technology allows user to keep the same handset asopposed to a Dual Mode Handsets


Femtocell Market DriversVoIP Over BBN technology is Exploding

0

20

40

60

80

100

120

2006 2007 2008 2009

VoI

P C

umul

ativ

eS

ubsc

riber

s (M

)

Metro WiFi

WiBB

Parasitic VoIPon BB

PON

DSL

Cable (Packet cable 2.0)

VoIP Cumulative Subscriber Forecast


Convergence / Quad Play Has BegunCompetitive differentiation

TeliaSonera Orange

Comcast KT ATT

TIM Time Warner DoCoMo

BT StarHub

Global Momentum

Service Providers Are Evolving to Seamless Mobility, Triple and Quad Play


Service Provider Market DynamicsFemtocell: Initial Interest from UMA Wireless Operators

Greenfield ISPs

Entry into growing wireless market

Increase minutes on IP network

Cable MSOs

Triple-play evolution to quad play

Increase revenue per subscriber

WirelessService Providers

Fixed mobile substitution

Revenue and market expansion

WirelineService Providers

Keep minutes on network

Increase revenue

Reduce churn


Serving diverse end users with

NGN

Optimize with NGN services for both

circuit & packet world

Compete with new applications to

gain differentiation

Increase subscriber penetration in the

places served today

Service Provider/End User ChallengesEnd Users end up having multiple providers/services

Circuit switched services are restrictive

Services are specific to the cellular, wireline networks

Competitive threat from other service providers

Reduce churn, increase operational efficiency

IP Multimedia Subsystem plays a key role in the core network evolution.


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Market Drivers

Femtocell Evolution


Summary

Agenda

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Seamless Services across Networks

Cellular CDMA 1X, DO-A GSM / GPRS / HSDPA /WiMAX /LTE

WiFIHome / Enterprise / Hot Spot

UMA/IMS VCC

SeamlessHandoff

Seamless across Networks and Devices

Cellular / WiFi / WiMAX /LTE / Wireline

SeamlessHandoff

Seamless services across user environments creates opportunities for service providers to increase revenues

Seamless Mobility increases reach ability and productivity

What is Seamless Mobility?


FMC Solutions– Femtocell Evolution

Residential Residential / Enterprise

Advanced Services

Residential / Enterprise

UMAHosted Solution

UMA Evolution to Femtocell

MOTOwi4 Hosted VoIP / Seamless Mobility Solution

GAMA Applications

(Interactive Manager)

Hosted IMS Solution

Mobility Manager, CDMA, GSM networks


UMA Today: Femtocell Opportunity Expanding

UMA moves to “Universal Mobile Access”

SoftmobilesUMTSStandard

3G Handset

Femtocells

Terminal Adaptors

Mobile Core Network

(Circuit, Packet, IMS services)

UMA Network Controller

Dual-Mode Handsets

BroadbandAccess

Wi-Fi Access Point

UMA: A standard, secure, scalable IP interface into the mobile core network


Mobile Core Network

(Circuit, Packet, IMS Services)

UMA Network Controller

Standard Mobile Handsets

GSM/UMTS

Private TDMAccess

BroadbandIP Access

GSM/UMTS

UMA-enabled Femtocell

Standardized, secure IP access to mobile networks and services

Supports ad hoc service activation

Scalable architecture designed for millions of user-installed femtocells

UMA Solves Femtocell Network Challenge


IMS Voice Call Continuity Call routing & HandoffVCC DMH >> Future Femtocell evolution with IMS

Home/SOHO

Access Point

RANRAN

PSTNPSTN

Cellular

Circuit NetworkMSC

WLAN Access Network

Mobility Manager

Packet Network

• Based on 3GPP 23.806 voice continuity draft• Supports active call handoff for

•Cellular Originated/Terminated calls into WLAN•Cellular Terminated calls into WLAN•WLAN Originated calls into Cellular•WLAN Terminated calls into Cellular

1. PSTN Originated Call to the DMH

2. MM Selects Cellular Network for Delivery

3. Handset moves into area of WLAN coverage

4. Handset establishes 2nd call via WLAN to MM

5. MM bridges WLAN and PSTN call legsRemoves cellular leg


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Market Drivers

Femtocell Evolution


Summary

Agenda

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Femtocell - Opportunities and Challenges

Opportunities / Benefits Challenges

Residential 2G/3G CoverageOperator Benefits

Subscriber retentionMacro network offloadIncreased revenue from new services

Subscriber BenefitsIncreased mobile performance at home,

Better coverageHome zone pricing

Femtocell ChallengesLow-Cost Femtocells ~ $200Interference management with

Macrocell network Core network integrationPackaging and selling service to end

users


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Market Drivers

Femtocell Evolution


Summary

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Agenda


Full Suite of Motorola ServicesServing Public, Private, and Enterprise Customers

Operationalizing Seamless Mobility

Managed Services

Out-Tasking

Out-Sourcing

Build, Operate, Manage/Transfer

Hosting Services

Integration Services

Planning & Design

Installation, Commissioning

Turnkey Services

Program Management

Support Services

Support, Training

Operations, Maintenance

Optimization

Security

Network Management

Application Services

Services, Application Delivery Framework

End-User Applications

Hosting Services

Mobile Virtual Network Operator (MVNO)

Seam

less

Mob

ility

Serv

ices

Customer

CONCEPTUALIZEStrategy1Business AssessmentBusiness ModelingNetwork EvaluationSolution DesignImplementation Plan

REALIZEImplementation2Network PreparationSystem IntegrationProgram ManagementTrial – Controlled Introduction

EXTENDSupport3Go-to-Market – Volume IntroductionNew Service Uptake MonitoringEnhancementsTraining


Dual Mode Devices

End-to-End Framework

Proven Portfolio Of FMC Solutions

Full Suite of Motorola Services

Flexible Mobility Management Solutions

The Motorola Difference

Documents

Femtocells – Opportunities and Challenges (DRAFT)