Keeping Mobile Carriers Competitive Femtocells Keeping Mobile Carriers Competitive Gibson Ang Sr. Product Manager

What is Femtocell Femtocells are small cellular base stations that plug into a residential DSL or cable modem Use license spectrum Attach to cell phones in the same manner as cell phones attach to macro base stations Customers can use existing cell phones with the Femtocells Mobile voice and data services are carried back to the wireless operator’s core network via the residential broadband connection Guaranteed coverage within the home Higher quality than typically experience on the macro cell at home Reduce churn Frees up cell tower capacity Carriers get more from their existing spectrum

Femtocell Baseline Architecture Femto Management System FAP-MS FGW-MS Fm Fg HPLMN Core Network Fr Femto GW Subscriber Database Fb-cs CS Core UE Fa Femto Access Point Home GW Access NW Fb-ps PS Core FL SeGW Radio I/F Fb-ims IMS Core HPLMN RAN Source: FemtoForum

Soft Switch Wireless Gateway Network Connectivity Soft Switch Wireless Gateway Data Core IP Router PCF IP Router FAP Manager IP Router IP Router Security Gateway IP Router Femtocell AP (FAP)

Mobile consumers are inundated with choices and decisions daily What’s Behind the Femtocell Move? Mobile Subscribers, Mobile Lifestyles, and Mobility-enabling Providers Consider the Impact of the Apple iPhone The iPhone represents only 2% of the smartphone market. But it already drives 70% of mobile Internet usage with its full-feature, easy-to-use iPhone browser. It’s all about understanding a population that embraces mobile and digital lifestyles. Mobile consumers are inundated with choices and decisions daily

What Mobile Subscribers Want in Services, Security, and Choices Today and Tomorrow’s Users What mobile subscribers want: Seamless quality of service Exceptional quality of experience Knowledge that their mobile sessions are secure Access from anywhere to anywhere on any device 6

The Mobile Lifestyle -> Unprecedented Data Growth Extracted from Heavy Reading: Comments made in public forums provide evidence of unprecedented data traffic growth: T-Mobile said 3G data volume in Q3 2007 increased 57% from Q2 2007. Telefonica-O2 said it saw doubling of data volume every quarter in 2007. Ericsson says that in 3G networks monitored by Ericsson, total data traffic now exceeds voice traffic. By August 2007, more than 60% of WCDMA traffic was data. Nokia Siemens Networks sees greater volumes of data than voice in several European HSPDA networks. In some networks, data accounts for 80% of the traffic volume. AT&T Mobility said in February 2008 that wireless data traffic was four times greater in 2007 than 2006 Source: Heavy Reading 7

Implications of Data Explosion Growing Strain On Today’s Access Networks Femtocells, Handsets Dual Mode Offload – Move to next generation Access Technologies –LTE, WiMax Indoor coverage – not optimal Growing Strain On Today’s Access Networks

Operator Considerations for the Femto Integration Throughput bottleneck will shift from the Access Network to the core – first point - Femto Gateway The Operator’s Core must evolve to keep up Need for flatter network architecture - Network element consolidation/elimination – eg. Platforms – ATCA, Direct tunneling More devices, more sophisticated applications -Security and QoS requirements at the edge will be key factors Access-agnostic core - Mobility between networks (Mobile IP, GTP) Huge bandwidth and scale requirements for the Femtocell gateway Direct tunneling - Bypassing the serving gprs node in the data path Growing demands on the Femto Gateway standard to evolve!

Evolving Network Integration Model Operator needs a migration plan as the operator’s network evolves…

Evolution to LTE/SAE Internet & Broadband LTE Femtocell Network S1

NextPoint’s Integrated Border Gateway for Femtocell Deployments: A Unified Quality of Experience In conclusion, NextPoints solutions help the operators provide a unified quality of experience. by enabling seamless subscriber mobility as the packet core evolves by providing consistent and scalable secure access, By ensuring a positive voice, data and multimedia experience through a policy driven QoS scheme as the mobile data explodes and finally protecting the carriers infrastructure from existing and new attacks In summary, operators need a migration plan as their network evolves…deploying NextPoint’s IBG solutions helps the operator future proofs their investments.

Questions & Comments gang@nextpointnetworks.com