Alcatel-Lucent Small Cells-Femto. FEMTO RPEC Team

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1 Alcatel-Lucent Small Cells-Femto FEMTO RPEC Team

2 Why Femto Where do you use your mobile? Coverage related QoS issues lead to customer churn (~30%) % 2 fully indoor coverage % 70 indoor usage Source Yankee Group 2008

3 Why Femto

4 Full Plug & Play Step0 : Factory Product Product identifications identifications are are programmed programmed and and labeled labeled (bar (bar code code and and identification identification Step1 : User s Subscription Step2 : Subscription Confirmed The The user user subscribes subscribes to to the the service service (in (in a a shop shop or or on on the the web) web) He He selects selects the the type type of of Femto Femto and and service service set set He He fill-in fill-in his his personal personal details details End End user user receives receives confirmation confirmation of of the the subscription subscription and and login login information information Includes Includes the the Femto Femto if if he he had had subscribed subscribed by by web web Step3 : Plug the Femto Power-on Power-on the the Femto Femto Auto-Configuration Auto-Configuration procedures procedures starts: starts: A. A. Initialization Initialization to to connect connect to to BSR BSR Gateways Gateways B. B. Authentication Authentication C. C. Auto-configuration Auto-configuration of of initial initial parameters parameters D. D. Check Check Femto Femto location location E. E. Registration Registration of of authorized authorized UE UE Step4 : Femto is working! Users Users received received a a confirmation confirmation call call or or SMS SMS on on his his mobile mobile Register Register up up to to UE UE BSR Femto System fully integrated in Customer s IT to enable Plug & Play

5 Femto Comparison Expensive To achieve good UMTS inbuilding coverage HomeBSR coverage UMTS Core Network UMTS air interface 100 BaseT ethernet In home UMTS air DSL interface connection Ethernet 100 BaseT HomeBSR Existing BSR Core Network Integration Technology Cheap IP Access Network HomeBSR controls Internet bandwidth allocation for QoS IPSec Router Signalling Gateway

6 Explosion of traffic leads to technical challenges Macro Cells Heterogeneous Radio Quality Throughput Network Congestion Average Throughput Focus on Data Quality of Experience 6 Alcatel-Lucent Small Cells Solution February 2010

7 Alcatel-Lucent Small Cell Solution For better data quality of experience Macro Cells Macro Cells + Small Cells Better Coverage Distribution Throughput Better Capacity distribution Macro Cell Average Throughput Macro Cell + Small Cell Average Throughput Cell Center Throughput Adding small cells to enhance end users data QoE within a geographical area 7 Alcatel-Lucent Small Cells Solution February 2010

8 Alcatel-Lucent Small Cell Solution Less Impact on Environment Macro Cell Received Power Small Cells Distance Integrated in the urban environment Small devices with low footprint Lower Power 8 Alcatel-Lucent Small Cells Solution February 2010

9 Small Cells Big gain Alcatel-Lucent: largest volume production of Small Cells. Gearing up for network transformation by delivering network capacity Efficient heterogeneous Network, Traffic Offload from macro and Core Network more experience Improve satisfaction lead to customer retention and Acquisition more value: Application enablement Coverage at Lower Cost Lower Capex: Cheap device, Existing backhaul Lower Opex: Self everything Plug&Play Why Alcatel-Lucent: Small Cell Expertise, Proven Portfolio, True Plug & Play

10 Operator issues addressed Increasing Quality of Experience A practical proven means of expanding network capacity indoors / out doors (hot spots) by offloading traffic from the macro. Increasing locations where new high data demand services can be delivered Brings the network closer to user, delivering a more responsive better quality of service Solving Need to reduce TCO to enable operator to service the explosion of traffic delivering flattish revenue Small cells enable operators to sweat their existing spectrum inventory Governments are looking to mobile phone operators to operate at low levels of power..(btk)

11 Operator issues addressed Improving business bottom line Contains CAPEX and OPEX costs New revenues generated from increased usage (made possible by increased capacity and reach) and application enablement. Happy customers stay and their recommendation to others in family and business will create positive churn.

12 Product Portfolio

13 Product Portfolio

14 Femtocell Vendors E2E solutions Integrated Integrated Partners for gateway and CPE Self deployed + 2 new own CPEs + CPE partners Partners for CPE + gateway Open CPE partners CPE+ Gateway + partners CPE +partners Silicon/ Software Femtocell/CPE Gateways/ Connectivity OAM&P and Security Standalone Integrated

15 Product Portfolio

16 Alcatel-Lucent Small Cell Installation Solution Portfolio targeted Home Cell Category Product Naming Capacity Max Power Installation Owner Users Access Other Remarks Residential Indoor Home Cell 4 to 8 users 20 mw End user Open or Closed Enterprise Indoor Enterprise Cell 8 to 32 users 100 to 250 mw Local IT team Open or Closed Public Indoor Metro Cell Indoor 8 to 32 users 100 to 250 mw Operator Open Public Outdoor Public Outdoor Metro Cell Outdoor 8 to 64 users Up to 250 mw Operator Open Specific advanced characteristics with LTE product (Multi beams/ Mimo (SNAP) Alcatel-Lucent products in line with market needs 16 Alcatel-Lucent Small Cells Solution February 2010

17 Femto Network

18 Femto Cluster

19 Femto BSR

20 Femto Firewall 1. A Firewall between the fbsr and the operator s network. 2. An IPSec router 3. The BSR Voice Gateway (BVG) and the 4. The BSR Packet Gateway (BPG) Processor: 3.6 GHz Main Memory : 2 GB RAM Ethernet ports Fourteen 10/100/1000-Mbps BaseT Ethernet ports Six GigE optical Ethernet ports

21 Femto ALSMS The Alcatel-Lucent Security Management System (ALSMS) is the O&M system for the ALVF Brick.

22 Femto AP First Connection

23 Femto FMS The management of the BSR Femto devices is performed using the Femto Management System OAM solution (FMS). The Home Network Manager (HNM), well established product for the management of TR69 based Customer Premises Equipment (CPE) for: Suitable for customer care centers Zero-touch provisioning, interfacing with CPE, configuration updates in conjunction with WMS Software upgrades Problem diagnosis and troubleshooting Event Management of the BSR Femto devices

24 Femtocell Activities (all vendors) Ukrtelecom Swisscom, Switzerland TeliaSonera T-Mobile T-Mobile Vodafone& Telenet Telefonica 02 T-Mobile Verizon 2G Femto Sprint 2G Femto AT&T 3G Verizon Orange, FT, SFR Sonocom, TMN Vodafone, Telefonica 02 Go Mobile Cosmote Greece Mobilkom Austria SoftBank* SK Telecom, KTF Docomo* Trials in 2007 Etisalat, Egypt Vodafone Italy, WIND Italy SingTel Singapore 2G Deployments 2008 StarHub Singapore Telstra * Docomo / SoftBank deployment on hold ALU has been a front runner on Femtocell trials (13 trails so far)

25 Market Share & Sales Targets

26 Roadmap Overview - Software Oct 2008 June 2009 July 2010 Q BCR BCR2.2 BCR2.4 BSR3.0 Coverage & Capacity Coverage & Capacity Basic UMTS services Basic UMTS services (CS, PS, HSDPA) (CS, PS, HSDPA) Basic Mobility Basic Mobility (handover to macro) (handover to macro) Emergency call Emergency call handling handling Femto Specific Femto Specific Auto-Configuration Auto-Configuration Self-Optimization Self-Optimization 3G/2G network listing 3G/2G network listing Open/Closed access Open/Closed access and Access Control and Access Control Home Tariff & Visitor Home Tariff & Visitor Coverage Indicator Coverage Indicator Security Security IPSec & AAA IPSec & AAA 3GPP R6 Compliant 3GPP R6 Compliant Compliant Iu-CS & Iu- Compliant Iu-CS & Iu- PS interface PS interface Coverage & Capacity Coverage & Capacity HSUPA and improved HSUPA and improved HSDPA throughput HSDPA throughput Multiple PDP contexts Multiple PDP contexts Femto Specific Femto Specific Tone Generation Tone Generation Dynamic LAC/SAC Dynamic LAC/SAC allocation allocation Enterprise Enterprise Handover between Handover between Small Cells Small Cells 8 call capacity 8 call capacity Small Cell Groups Small Cell Groups Security Security National Location Lock National Location Lock Legal Requisition Legal Requisition Transport Transport Enhanced Call Enhanced Call Admission Control Admission Control 2 IPSec tunnels 2 IPSec tunnels PPPoE PPPoE Coverage & Capacity Coverage & Capacity Full rate HSDPA Full rate HSDPA Macro to Small cell Macro to Small cell Handover Handover Metro Cells Metro Cells Isolated cell Isolated cell Service based redirection Service based redirection Application Enablement Application Enablement Presence API Presence API Home Local Routing Home Local Routing Offload Offload Direct Tunnel Direct Tunnel Architecture Architecture All in one gateway All in one gateway Support of 3rd party Support of 3rd party security Gateway security Gateway IuFlex IuFlex Initial Iuh compliancy Initial Iuh compliancy USIM authentication USIM authentication AT&T content AT&T content 850/1900 Dual Band 850/1900 Dual Band GPS localization GPS localization Coverage & Capacity Coverage & Capacity HSDPA Cat 9 & 10 and HSDPA Cat 9 & 10 and 64QAM (hw dependant) 64QAM (hw dependant) HSUPA category 4, 5 HSUPA category 4, 5 and 6 (hw dependant) and 6 (hw dependant) Controlled RF emission Controlled RF emission (green Femto concept) (green Femto concept) Capacity & Coverage Capacity & Coverage self-optimization self-optimization Enterprise Enterprise PBX-Femto integration PBX-Femto integration Enterprise Gateway Enterprise Gateway Extended ACL Extended ACL Mobility/RRM Mobility/RRM Femto/Macro PS Femto/Macro PS Handover Handover Always On over Always On over Cell_FACH Cell_FACH Cell Broadcast Services Cell Broadcast Services PS Streaming PS Streaming Operability Operability TR.196 TR.196 GPS based synch & GPS based synch & location (HW location (HW dependant) dependant)

27 Thank you for joining ASC Impact of Femto Cells BG SC110 January 2009

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