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

3. 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

4. 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

5. 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

6. 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

7. 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
Four times annually
Includes:
Commercial services
Industry ecosystem
Market forecasts
Standards development
Regulatory developments
November 2009
50% increase in operator commitments

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

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

10. 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

11. 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

12. 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

13. 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”

14. 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

15. 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 for many more examples
Picture synchronisation & remote control
Virtual fridge notes

16. 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

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

18. 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

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