Femto Forum – Market Status Update Femtocells have arrived and are shaping up into a key weapon for mobile broadband s

2. Femto Forum – Market Status UpdateFemtocells 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

3. Aims The Femto Forum • 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? 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 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

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 (€) 383% 288% 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 November 2009 50% increase in operator commitments • 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

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

12. Standards Progress Femto Forum is actively supporting all three activities • 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

13. Regulation • Femto Forum regulatory white paper • Regulators recognising and acting on femtocells • Risks of hidden hurdles and slow action remain

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 www.femtoforum.org for many more examples Picture synchronisation& remote control Virtual fridge notes

16. Femtocells aren’t only for home Macrocells – wide area coverage and mobility Enterprise femtocells Domestic femtocells Outdoor femtocells 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

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

18. 2010 Femto Forum Priorities Overall goal: Facilitating world-wide femtocell adoption amongst operators and consumers and preparing for future evolution

19. Summary Femtocellsaddress immediate needs Femtocellsare here now Femtocellsare growing fast Femtocellsprovide a uniqueplatform for mobile services