CDG Technology Forum Las Vegas, November 15th, 2011

Leveraging CDMA2000 Small Cells with LTE to Increase Overall Network Capacity and User Experience

Andy Germano - Vice Chairman Femto Forum

© Femto Forum Ltd. 2011 1 Contents • Industry and Market Overview • Femto technology • Frequency and access mode considerations • Operator Best Practices Guide • Innovative New Services • Summary Aims The Femto Forum • Promoting & enabling femtocells • Not-for-profit, founded in 2007 • Independent, Inclusive, International

Partners Operators Technology providers

ƒ 66 operators covering 1.99 billion mobile ƒ 71 providers of femtocell technology subscribers – 34% of global total

© Femto Forum Ltd. 2011 3 Femto Forum Vision “Delivering a great mobile experience to one billion users via femto technology”

Femto Forum Scope We support the whole range of applications enabled by femto technology.

Femto Technology = chipsets + standards + know-how and other technology elements delivering scalable licensed-spectrum access points for mobile services This technology has been created via the advent of residential femtocells, but enables a much broader range of small cell applications

4 112% Growth in Deployments in the Last Year Eight of the top ten operator groups by revenue now offer femtocell services

5 3G Femtocells Now Outnumber 3G Globally!

Global 3G Cells

6 So what is femto technology? • Standards, chipsets, know-how and other technology Femto elements delivering scalable licensed-spectrum access Technology points for mobile services • Developed originally for residential applications, where consumer electronics volumes enable and require a customised, highly intelligent approach • So why are small cells different with femto technology? • Key attributes: - Scalability - Automated configuration and optimisation - Rapid, cost effective deployment - Efficient use of available backhaul - High capacity density and user experience

7 Applications of femto technology An increasingly wide range of femto-enabled small cells Femto Forum works to enable and promote all of these

Home Office Outdoors Rural

etc!

Femtocell Enterprise femtocell Outdoor / Metro femtocell Rural Metro cell femtocell Microcell User deploy Enterprise / SI or operator Operator deploy Operator / deploy community deploy Shared Shared or dedicated Dedicated wired or backhaul Dedicated backhaul backhaul wired or wireless backhaul Sprint’s Commitment to Small Cells*

Home FemtoCell Applications 5-C’s of Small Cells Low power, Desktop device, Home ISP network Opportunities: ‰ 2007 initial launch ‰ More than 500k deployed ‰ Expected to surpass 1M by 2013 ‰ Expected to surpass 1M by 2013 ‰ Coverage Benefits: traditional macro systems aren’t enough Enterprise FemtoCell Applications Low/Med power, Wall mount, Enterprise ISP ‰ Cost Reduction: operators must ‰ Successful Beta Program do more with less ‰ Launch in November 2011. ‰ Yearly deployments in the thousands expected. ‰ Customer Satisfaction: consumers demand high voice and Indoor PicoCell Applications data performance Med/High power, carrier provided backhaul ‰ Conservation: Lower power ‰ Wimax deployed 2011 consumption and extended handset ‰ LTE coming in 2012 battery life is eco-friendly

Outdoor PicoCell Applications ‰ Capacity: Targeted capacity High power, carrier provided backhaul where the user demands it.

‰ Wimax deployed 2011 ‰ LTE coming in 2012

* World October 25, 2011 Frequency Reuse: Macro and Femto Dense frequency reuse is essential to sustain the mobile industry • The ‘central magic’ of cellular systems is the ability to accommodate an unlimited quantity of demand (users or bits) in a limited quantity of spectrum • This is enabled by careful and appropriate management of interference amongst cells: so (managed) interference is a good thing! • Continuing growth means that only smaller cells can meet the demand sustainably and economically Strong Operator Interest in LTE Small Cells > 60% of operators surveyed consider small cells will be more important to LTE deployments than macrocells

Informa Operator Survey: May 2011 12 • Architecture Overview • Features • System Guidelines • Planning • Access Control & Security • Mobility • Hand-off • Services • Performance

13 Frequency Assignment Options

Femtocells (a) • ‘Correct’ configuration depends Macrocells on existing operator spectrum Frequency f1 f2 f3 holdings and the way in which they are used currently Femtocells (b) Starting with a clear channel for Macrocells • Frequency femto is common where f1 f2 available, but is not essential Femtocells

(c) • Ultimately highest spectrum Macrocells Frequency efficiency from avoiding ‘hard’ f1 f2 rules, but adjusting according to Femtocells location and loading (d) Macrocells Frequency f1 f2 Access mode Closed Mode • In closed mode, may have adjacent Only users on white list devices on femto and macro which can access femtocell have very different power levels • Choice of access mode is a key Hybrid Mode design decision Users on white list have priority access to • Choice may be constrained by femtocell, but all users can regulatory issues and by desired access if capacity available consumer proposition • Best choice often different between residential (often closed) and Open Mode All users can access enterprise (often open or hybrid) femtocell Spectrum Possibilities with Femtocells Femto Services

“5 Bar” Indoor Coverage

An Application Sweet Spot

High Speed Femto Low Cost Location Data & Voice Awareness

17 © Femto Forum Ltd. 2011 © Femto Forum Ltd. 2011 Consumer Willingness to Pay

// 60% €4.99/2.99/0.99 Yen 499/299/99 51% 50% 47% 47% 41% 41% 38% 38% 38% 40% 35% 35% 32% 32% 31% 32% 30% 25% 25% 26% 22% 22% 20% 17% 17% 13% 15% 12% 10%

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5 / 3 / 1 Summary

• The femtocell market is seeing its fastest growth to date • Applications of femto technology are spreading to include all types of small cells • Femtocells are the natural solution for mobile traffic offload • The use of femtocells & small cells enables 4G experiences over 3G networks • Femto Forum is working to enable the next wave of femtocell evolution

www.femtoforum.org 21 CDG Technology Forum Las Vegas, November 15th, 2011

THANK YOU!!!

Leveraging CDMA2000 Small Cells with LTE to Increase Overall Network Capacity and User Experience

Andy Germano - Vice Chairman Femto Forum

© Femto Forum Ltd. 2011 22 Reference

23 CDMA2000 Femtocell Network Architecture

24 CDMA2000 Femtocell Network Architecture

25 CDMA2000 Femtocell Network Architecture

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