Femto Forum – Market Status Update Femtocells have arrived and are shaping up into a key weapon for mobile broadband service delivery Prof. Simon Saunders simon@femtoforum.org Chairman, Femto Forum www.femtoforum.org

Aims The Femto Forum Promoting & enabling femtocells Ecosystem Development Market Education Driving open standards Promoting & enabling femtocells Not-for-profit, founded in 2007 Independent, Inclusive, International Operator Members 55 operators covering 1.4 billion mobile subscribers – 27% of total 67 providers of femtocell technology

Why Femtocells? Dramatic growth in mobile broadband Consumers increasingly sensitive to coverage for both voice and data– especially at home and in the office Operators need to meet this demand – but quickly and at reduced cost-per-bit Explosion of internet connected devices Exponential growth of mobile data traffic Traffic increasingly indoors On the move Out of home / office >80% indoors Office Source: Signals Research Group Home Source: Informa

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

Benefits for Consumers and Operators Alike Consumer Service Propositions Operator Business Case 16.7x RoI Household Lifetime Value (€) 288% 383% Source: Signals Research Group With full operator management, in existing spectrum, at reduced cost-per-bit With my phone, in my home and my office

Femto Forum Market Status Report February 2010 Launches gathered pace in late 2009 Reflecting the accelerating market, Femto Forum recently launched its market status report Available for free from www.femtoforum.org Four times annually Includes: Commercial services Industry ecosystem Market forecasts Standards development Regulatory developments November 2009 50% increase in operator commitments

The Flourishing Femtocell Ecosystem End to end system providers Other enablers Products Network Elements Components and Software

Femto Forum Femtocell Product Showcase 24 access point vendors, providing a wide range of consumer-friendly form factors and functions

50% growth in operator commitments in 3 months Femtocell market undergoing rapid growth globally with multiple deployments in Asia, North America and Europe Operator commitment to femtocells increased by 50% in last 3 months 9 live commercial networks, 3 further deployment commitments France’s SFR, Portugal’s OPTIMUS and China Unicom have all launched commercial services in past 3 months Vodafone re-launched its offering as ‘Sure Signal’ with significantly increased marketing and is realising considerable success in the UK

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 1. Femtocell worldwide trial activity Fig 2. Femtocell access point and user forecasts – Jan 2010

Standards Progress April 2009: Release 8 provided end-to-end UMTS standard, with Broadband Forum management data model Release 9 will provide feature enhancements for UMTS and end-to-end LTE femtocell support Phase 1 cdma femtocell standard expected shortly Phase II features are under consideration now Phase 1 expected for completion shortly Phase II to include advanced network features and air interface optimization Femto Forum is actively supporting all three activities

Regulation Femto Forum regulatory white paper Regulators recognising and acting on femtocells Risks of hidden hurdles and slow action remain Regulator Progress European Radio Spectrum Committee Concluded that existing national regulations should support femtocells in the context of increased spectrum efficiency Japanese Ministry Revised regulations in December 08 to be femtocell-friendly Ofcom (UK) Proposed changes to spectrum regulation in June 09 “[Femtocell] technology …has the potential to enable new forms of competition across communications networks: fixed-mobile convergence.”” ITU-R Recognised description of “Femto Access Node” in August 08 FCC (US) Chairman stated FCC will encourage use of femtocells in October 2009 MIIT (China) Director of State Radio Regulatory Committee stated “Femtocell is worth to be adopted, and worth to be promoted greatly”

First Femto Forum UMTS Femtocell Plugfest + Collaboration with European Telecommunications Standards Institute (ETSI) Taking place March 2010, with intensive preparatory work and staging tests in the intervening months Interoperability tests between femtocell network gateways, security gateways, femtocell access points and chipsets Verifying the Release 8 Iuh interface and associated security protocols Over 20 signed-up participants, including access point, gateway, chipset and software vendors of all sizes

Femtocell-enabled Services Chameleon home screen Secure home access Presence, location, context and remote access A bridge between the mobile and home networks Unlocking content, sharing and social networks on your mobile Home messaging See www.femtoforum.org for many more examples Picture synchronisation & remote control Virtual fridge notes

Femtocells aren’t only for home Femtocell economies of scale can deliver cost-effective deployments in offices, high-traffic or low coverage locations Femtos in the enterprise: overlay currently, integrated in future Metrozone: capacity offload and rapid-response next-gen provisioning Cost-effective access to rural and developing markets via appropriate backhaul solutions Macrocells – wide area coverage and mobility Enterprise femtocells Domestic femtocells Outdoor femtocells

Femtocells in Next-Generation Systems Next-gen Femtocells Performance Business Case Revenue impact Time-to-market Cost savings Services Deployment Approaches

2010 Femto Forum Priorities Overall goal: Facilitating world-wide femtocell adoption amongst operators and consumers and preparing for future evolution Services Enabling an ecosystem for service development Market Status Tracking market activity and responding to issues arising from deployments Operator case Capturing and spreading operator best practice, value proposition and evolution options Enterprise applications Requirements, supporting standards and deployment practices Rural and developing market applications Exploring the potential of femtocells to promote inclusive access to mobile services Standards Encouragement of defined standards and supporting standards enhancements with 3GPP, 3GPP2, WiMAX Forum, Broadband Forum Interoperability Enabling plugfests and broader IOT according to published standards and market requirements Next generation Business case, deployment models and technology Broadband and in-home networking Easy and efficient routing, configuration and interworking of home networks involving femtocells Geography and ecosystem Broader international geography and ecosystem. Engaging with developers and handset manufacturers

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