Sue Rudd - Strategy Analytics - Microcells, Femtocells and WiFiasterclass d3

Microcells, Femtocells & Wi-Fi What Are the Tradeoffs?

Broadband World Forum Analyst Spotlight

Thursday September 29th 13.30 pm

Presented by Sue Rudd

[email protected]

Director Service Provider Analysis, Strategy Analytics

September 28th. 2011 email: [email protected] Copyright© Strategy Analytics 2011

Outline

• Drivers for Small Cells

• Capacity & Coverage to Deliver Quality User Experience

• Requirements that Demand Small Cells

• Features of Small Cells: Wi-Fi, Femto & Pico/Micocells

• Small Cell Solutions• Femtos for Performance Leap• Wi-Fi Offload to Complement 3G Capacity • Outdoor Femto/Pico cells and Wi-Fi to Leverage Macrocells• Hetnets to Increase Network Capacity and Enhance User

Experience Simultaneously

• Summary of Tradeoffs Today ….& Tomorrow

September 28th. 2011 email: [email protected] Copyright© Strategy Analytics 2011 2

Overall Drivers: Telefonica Focuses on Network Capacity & Indoor Coverage to improve Customer Experience

3Source: Telefonica May 2011


Drivers for Small Cells

• Overall Driver: Capacity & Coverage Required to Deliver Quality User Experience

• Specific Drivers

Traffic Growth Demands New High Capacity Broadband Capacity:• Throughput – Total GigaBytes etc.• Speed – High MBps & Low Latency

Mobile Broadband Peak has shifted to Evening/Night – i.e. at Home Indoors as well as in Automobile

Revenue per GB falling faster than Cost per GB


Traffic Growth Demands New High Performance Broadband Capacity

Worldwide Average Data Use (GBytes/month) 2010 2011 2012 2013 2014 2015

1.763 2.149 2.625 3.155 3.750 4.405

Average Data

Traffic Per PC/Modem

Sub. Will

Double in Many Markets

from 2011 to

2015


Mobile Broadband Peak has shifted to Evening/Night i.e. at Home Indoors as well as in Automobile

6

Source: Bytemobile Mobile Analytics Report June 2011

- Time of Day Peak has Changed:• 6+ hours long

• Evening Not Daytime

Bytemobile Trends – US Mobile Data Generates 6+ Hour Usage Peak

September 28th. 2011 email: [email protected] Copyright© Strategy Analytics 2011

Annual Mobile Data Forecasts through 2016 $Total Cost of Operations (TCO) Per GB vs. Revenue Per GB/Yr.

$0.00

$1.00

$2.00

$3.00

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$6.00

$7.00

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$0.00

$10.00

$20.00

$30.00

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$90.00

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2010 2011 2012 2013 2014 2015 2016

An

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al $ G

B B

y Techn

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gyAn

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Re

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B

Total Revenue Per GB per Year is falling Faster than Cost Per GB

$ GB UMTS/HSPA

$ GB HSPA+

$ GB LTE

Global Revenue/ GB/ Year

N.America Revenue/ GB/ Year

W.Europe Revenue/ GB/ Year

Need to slow decline in Revenue per GB and accelerate decline in TCO per GB


Requirements that Demand Small Cells

• Rapid Growth in Demand for Broadband Capacity

• High Percentage of Indoor Demand

• Highly Localized Congestion at Specific Cells at Peak Times

• Need for Lower Equipment Costs per Access Point/Cell Site to ‘Bend the Cost Curve’

• Need for Low Cost Installation & Min. ‘Truck Rolls’

• Solutions that do not require Costly Fiber Backhaul or even Carrier Ethernet everywhere….

• Seamless ‘Underlay‘ for Macrocells at same or different Frequency (HetNets) to minimize Operational Complexity and reduce OPEX


Smaller Cells Add Capacity and Coverage Rapidly and ‘Bring Network Closer’

• Cellular Wireless Scales by Spectrum Reuse at Lower Power

September 28th. 2011 email: [email protected] Copyright© Strategy Analytics 2011 9Source: Qualcomm

1Leveraging heterogeneous network topology: macro network with added small cells like picocellsand femtocells

Features of Small Cells: Wi-Fi, Femto & PicoComparison of Wi-Fi, Femtocells and Pico/Microcells


Wi-Fi Femtocells Pico/Microcells

Relative Equipment Cost 1X 3-4X 6 - 12X

Indoor

Outdoor Barely

3GPP Auto Registration

Operator Management

Seamless Roaming to Macrocell

Part of Integrated HetNet

No Truck Roll Req'd

Integrated Backhaul Connect Ethernet Home Broadband Operator B'band

Scalable as Needed More Access points More Sectors/Cells

Policy Control & Enforcement

Route to Fixed or Mobile PG/WKey

Strong Feature

Somewhat Capable

Newly Capable

Not Capable

Femtos Can Provide Performance Leap

Indoor Femtos can Add Major Capacity with Fixed Backhaul


Assumptions: Example for HSPA+. 16 Users per cell for dense urban HSPA+ system: 10 macro users and 6 home users served

either by macrocell or added femto cells. Rx diversity and MMSE Equalizer used. The median user data rates are shown.

Note: Also, the worst 10% of macro users get ~15% higher throughput with proper interference management techniques.

Wi-Fi Offload to Smart Gateway can massively Complement 3G Capacity

Smart Wi-Fi Device Client -with Auto Registration and Operator Visibility -can Onload or Offload ‘Bandwidth Hogs’ like Video ‘At the Edge’


Source: Kineto Wireless

Outdoor Femto/Pico cells and Wi-Fi can both Leverage Macrocells

HetNet ‘Underlay’ of Femto/Pico Cells can add significant capacity to Macrocell and Retain Option for WiFi Offload


Hetnets can Increase Network Capacity and Enhance User Experience Simultaneously

HetNets Enhance Data Rate and Allow Variable Range


Assumptions: 4 Picosper Macro randomly dropped within macro coverage, see 3GPP R1-101509. Based methodology in TR 36.814: 10 MHz FDD, 2x2 MIMO, 25 users and500m ISD. Advanced interference management: enhanced time-domain adaptive resource

partitioning, advanced receiver devices with enhanced RRM and RLM 1Similar gain for the uplink

Summary:Tradeoffs Today……Fewer Tomorrow

Today Must Trade-Off

• Initial Equipment Cost Seamless Roaming

• User Owned Fixed Backhaul Operator Optimized Offload and Backhaul

• Zero Truck Rolls Operator Controlled Frequency Management

In Future

• Low Cost Wi-FI and Small Cells Seamless 3GPP Interoperability (NGH)

• Offload & Broadband Routing Operator Policy Enforcement

• Simplified Installation Self Optimizing Networks (SON) or at least Adjacent Frequency Avoidance


Contact Information

Sue Rudd

Director, Service Provider Analysis

Strategy Analytics

www.strategyanalytics.com

email: [email protected]

September 28th. 2011 email:[email protected] Copyright© Strategy Analytics 2011 16

http://www.strategyanalytics.com/

mailto:[email protected]

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Sue Rudd - Strategy Analytics - Microcells, Femtocells and WiFiasterclass d3