alcatel femto - small cells for home, enterprise and metro

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 1

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

SMALL CELLS FOR HOME, ENTERPRISE AND METRO

FEBRUARY 2012



AGENDA

• Market Landscape

• Next Generation HetNet

• More Choices for Coverage and Capacity

• Small Cells Business Cases

• Alcatel-Lucent Small Cell Solution Architecture

• Small Cell Access Points

• Key Features

• Small Cell APIs and Application Ecosystem

• Small Cells – a Major Part of our Mobile Broadband Future



DEVICE TYPE AND NETWORK LOAD30x GROWTH EXPECTED IN NEXT 5 YEARS!

Source: Alcatel-Lucent analysis of various customer networks using Bell Labs tools

iPad is 2x that of iPhone!

406394

171

118

223

77

15

iPhone Blackberry Android Datacard

Data Calls per Day (signaling)

Megabytes per Day (bandwidth)



A SIGNIFICANT DEVICE AND USER SHIFTFROM CIRCUIT TOWARD IP AND MULTIMEDIA

Source: iGR Inc., June 2011 and available industry statistics

• 250 millionFacebookmobile subs

• 2 billion videos per month watched on Facebook

• 2 billion videos per day watched on YouTube

From basic communicationsto entertainment

and social networking

What would you like to do?

0% 20% 40% 60% 80%

Watch TV

Surf Internet

Watch videos

Play games

Talk

Text

What do you currently do?



KNOWN CURES FOR IMPROVING USER EXPERIENCE

• Introduce LTE / 4G technology- Upside: Raises the amount of network capacity and

improves the user experience (similar to improvements made in wired networks of DSL or cable data)

- Downside: Requires more equipment, usually in another band (which can have worse loss characteristics)

• Move antennas closer to user to decrease over-the-air loss

- Upside: Improves network capacity

- Downside: Requires even more equipment (more transmitter / receiver combinations; small cell sites)

The Industry Goal is to Become Less-Obtrusive while using Less Power



ADDRESSING AN EXPLODING MARKET POTENTIALISSUES WITH A MACRO-ONLY APPROACH

Poor in-building Penetration

• Data loads can exceed capacity, necessitating new carriers or new sites / cell splits

Rural Access

Poor Residential Coverage

• RF penetration through glass, steel and concrete

Indoor HotspotsOutdoorHot Spots

• Expensive for rural coverage



CELLULAR COVERAGE IS NOT CREATED EQUALDISTANCE = LOSS = LESS RELIABLE THROUGHPUT

60% of Broadband Subscribers are Interested in Small Cells!

Do you Experience?• Dropped Calls: 16-47%• Poor voice quality: 19-49%• Slow Internet: 32-72%• Slow email: 21-61%

Source: Parks Associates data commissioned by Femto Forum



THE LIMITS OF MACRO BTS-ONLY STRATEGYCLAUDE SHANNON PREDICTED OUR DILEMMA

Source: Bell Labs analysis

2

4

-5 +5 +15

Peak

dat

a ef

ficie

ncy

(bps

/Hz)

Signal-to-noise ratio (dB)

Limits of 2G, 3G, 4G

SHANNON-BOUND

Infeasible region

EV-DO

LTE

HSDPA

A good experience

A bad experience

Network load, frequency band, and distance all make a difference



WHAT’S REQUIRED IS A NEW KIND OF NETWORKTHE NEXT GENERATION HETNET

• Support a multi vendor environment

• Mitigate interference

• Incorporate intelligent traffic management features

• Provides a seamless end user experience

HETNET COORDINATES WITH MACRO NETORKS

• Ubiquitous coverage

• High bandwidth capacity

• Superior QoE

• Cost efficient capacity and coverage in all environments

HETNET PROVIDES

Small Cells Are a key Component of Any HetNet



SMALL CELLSMORE CHOICES FOR COVERAGE AND CAPACITY

Enterprise Small Cell

Home Small Cell

Metro Cell

Enterprise Small Cell

WiFi Hotspots

DistributedAntenna

3G/4G Macro3G/4G Macro

WiFi

9361 Home Cell

9362 Enterprise

Cell9363

Metro Cell Indoor

9364 Metro Cell Outdoor


W-CDMA (Wi-Fi optional)

9362 Enterprise

Cell

Private Small Cells Public Small Cell

9768 Metro Radio

Outdoor

9764 Metro Cell

Outdoor LTE 2X1W


LTE 2X5W


MS/Wi-Fi



THE HOME CELL BUSINESS CASERETENTION & PERFORMANCE IS OFTEN STEP 1

The simple case- First costs

- Subscriber remarketing and acquisition costs: $250-400*

- A retained revenue stream

Femtocell $160Other costs $80Sub-total $240Paid by customer ($50)

Net first costs $190

* new equipment included

• Up to 60% downlink improvement• Up to 26% uplink improvement• 20-50% network traffic offload



HOME CELL BUSINESS CASEGAINS IN SEVERAL DIMENSIONS

Macro offload savings (CAPEX) 6%

Churn reduction savings/ Secured revenue 13%

Additional ARPU 15%

Market share gain (3G ) 26%

Macro offload savings (OPEX) 3%

Femto fees 3%

Value added services 11%

Market share gain ( xDSL) 24%

Femto network CAPEX 15%

Femto OPEX 17%

Other expenses (G&A, Bad debt) 4% DSL network (CAPEX/OPEX) 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Revenue/Savings Expenses

Market Share Gain (50%)

Churn Reduction 13%

Macro Offload Savings (9%)

Incremental ARPU (26%)

Posi

tive

NPV

Home Cells Business Case Revenue and Expense Split

DPP = 25 monthsIRR = 194%NPV = 21,595 M€

Source: Bell Labs analysis



ENTERPRISE CELL BUSINESS CASEMORE BUSINESSES COVERED FOR LESS

Enterprise Cells 8 usersEnterprise Cells 16 usersPico cellDAS

50 €

100 €

150 €

200 €

250 €

0 €

SOHO SME Corporate

Cos

t pe

r Em

ploy

ee (

in E

uros

)

5 Year Total Cost of Ownership

Enterprise Cells, the Most Cost-effective Solution for All Business Sizes

Source: Bell Labs business modeling Mar 2010



METRO CELL BUSINESS CASEBETTER COVERAGE, HIGHER THROUGHPUT, LESS TCO

Source: Bell Labs analysis based on dense urban area using dedicated carrier

Year 1 Year 2 Year 3

Macro BTS

MacroBTS

MacroBTS

Metro Cells

Metro Cells

Metro Cells

OPEX CAPEX Backhaul

Total cost of ownership (000 Euros)

0

200

400

600

800

1,000

1,200

640K€ vs. 1.4M€!

<3 Mb/s

<5 Mb/s

<10 Mb/s

>10 Mb/s

YEAR 1

<3 Mb/s

<5 Mb/s

<10 Mb/s

>10 Mb/s

YEAR 2

<3 Mb/s

<5 Mb/s

<10 Mb/s

>10 Mb/s

YEAR 3

<5 Mb/s<10 Mb/s

>10 Mb/s

YEAR 4

USER THROUGHPUT BASED ON LTE MODEL

NUMBER OF SIMULTANEOUS USERS

90% Coverage



ALCATEL-LUCENT SMALL CELL SOLUTIONSOLUTION ARCHITECTURE

• Alcatel-Lucent pre-integrated E2E solution

• Highly scalable, high capacity solution

• True flat IP architecture

• Bell Lab’s SON innovation

• 3GPP standards compliant, including IuhRelease 8 interface

• Proven comprehensive security mechanisms

• Applications enablement with APIs and SIP interface to presence/application server

• Internet traffic offload, minimizing impact on SGSN and GGSN

• SCMS OA&M solution integrates both with macro network OA&M and customer care

Small Cell Access Points

Small Cell Gateway

Small Cell Management System

3GPP UMTS Core Network

Small Cell Gateway SCMSWPS

Motive HDM WMS

9365 BSR Gateway

SeGW

IPC

AAA

NTSALSMS

MSC Server SGSN

GGSNPresence/ Application

ServerHLR

3GPP Interfaces (IuCS, IuPS, MAP and SIP)SNMP and TR069

3GPP Iuh or Iu’IPSEC Tunnel

9361 Home Cell

9362 Enterprise

Cell

9363 Metro Cell

Indoor





SMALL CELLS - FOR HOME, ENTERPRISE AND METRO

9361 HOME CELL

9362 ENTERPRISE

CELL

9363 METRO CELL INDOOR

9364 METRO CELL OUTDOOR

9764 METRO CELL

OUTDOOR

• W-CDMA• Integrated

omnidirectional antenna

• 4 to 8 users

• W-CDMA• Integrated or

external omnidirectional antennas

• Rx diversity• Small cell net• 8 to 32 users

• W-CDMA• Tamper resistant • Integrated or

external omnidirectional antennas

• Rx diversity• HSDPA 64 QAM• Small cell net• 16 to 32 users

• W-CDMA• Ruggedized design• External omni

directional antenna• Rx diversity• HSDPA 64 QAM• Range 2 KM at

120m/h• 16 to 32 users

• W-CDMA• Outdoor for indoor

or outdoor coverage• 2 integrated

directional lightRadiocube antennas

• Integrated BBU• RX diversity• Modular metro dock

design• Optional Wi-Fi AP• Up to 32 users

9768 METRO RADIO

OUTDOOR• LTE• Outdoor for indoor

or outdoor coverage• 2 integrated

directional lightRadiocube antennas

• Distribute BBU• RX diversity• 2X2 MIMO• CPRI • Up to macro-like

capacity daisy chaining



HOME CELL SW LICENSING FOR MORE DEVICE CHOICES

WHAT IT MEANS FOR END USERS WHAT IT MEANS FOR OPERATORS

• More device choices for home coverage

• Less home networking devices

• Reduces complexity of home networks

• Easier installation, operation and maintenance of home networking devices

• Enables operators to maintain or extend existing relationships with CPE vendors

• Enables operator customized designs

HOME CELL INTEGRATEDRESIDENTIAL GATEWAYS

FROM 3rd PARTY CPE VENDOR

NETGEAR 9361 HOME CELL

SW ENABLED HOME GATEWAY

THIRD PARTY CPE VENDOR HW & SW

ALCATEL-LUCENT

9361 HOME CELL SW

TECHNOLOGY REFERENCE

DESIGN



INTRODUCING THE NEW 9362 ENTERPRISE CELL V2.2 WITH PAY-AS-YOU GROW CAPACITY

• 16 users upgradable to 24 & 32 with licensing

• 100 mW upgradable to 250 mW with licensing

• Rx diversity for improved RF performance

• Minimum to no radio planning: SON & small cell net

• Free standing or wall mountable

• Flexible power: AC/DC power adaptor or Power over Ethernet+

• Ethernet backhaul with pass-through Ethernet RJ45 for additional device

Pay for Only What You Need When You Need It



INTRODUCING LIGHTRADIO CUBE-BASED METROS 9764 METRO CELL OUTDOOR AND 9768 METRO RADIO OUTDOOR

• 3G metro trials under way in Europe

• 4G trials in the US and Europe

• Commercial 3G and 4G products available in 2012

• Delivers

− Optimized service delivery and installation

− Green bandwidth

− Reduced network TCO

LightRadio Cube-Based Metro Cells and Radios Are Here

lightRadio Cube Inside



9764 METRO CELL OUTDOORPROVIDES INDOOR COVERAGE FROM AN OUTDOOR LOCATION

• W-CDMA all-in-one metro cell operating in 2100 MHz

• 38 dBm (6W) EIRP transmit power

• 2 integrated directional lightRadio cube antennas for higher throughput, lower interference, and greater power efficiency

• Rx diversity for improved RF performance

• Offers integrated Wi-Fi access point with optional Wi-Fi module

• One person install on lamp post, pole, or side of a building

• Installed outdoors for coverage indoors or out

• Fully compatible with Alcatel-Lucent 9360 Small Cell solution

Easily Accessible for Installation, Operations, and Maintenance



9764 METRO CELL OUTDOOR SERVICE MODULE INNOVATION

Metro Dock

RF Box

Assembled Metro Cell

ALCATEL-LUCENT SERVICE MODULE DESIGN

Co-Created with Customers to Meet Customers’ Needs

• Modular metro docks support multiple backhaul options

• Thin metro dock - GigE, GPON, Wi-Fi

• Thick metro dock –DOCSIS, DSL

• Deployment flexibility - site may be prepared separately from technology rollout

• Easier frequency swaps and technology upgrades - just replace RF module

• Investment optimization – LTE only when and where needed



Provides High Bandwidth to Stadiums, Malls, Convention Centers, Large Enterprises, etc.

• LTE distributed Metro Radio operating in 2.6 GHz

• 2 integrated directional lightRadio cube antennas

• 34 dBm EIRP at each antenna

• 2-path Rx diversity and 2x2 MIMO-enabled cross-polarization for improved RF performance

• One person install on lamp post, pole, or side of a building

9768 METRO RADIO OUTDOORDELIVERS MACRO-LIKE CAPACITY TO WHERE IT IS NEEDED



9768 METRO RADIO OUTDOORDISTRIBUTED eNodeB ARCHITCTURE

Offers Deployment Flexibility Coupled with Optimized Use of BBU Digital Assets

• Reduces costs by leveraging same BBU resources as macro network

• Deployment flexibility - works with conventional and clustered BBUs

• CPRI daisy chaining enabling multiple MROs to share same backhaul to BBU

• Fully compatible with Alcatel-Lucent 9926 d2U

BBU orBBU cluster

SGW PGW

CPRI

CPRI daisy chaining



WI-FI INTEGRATED SMALL CELLSLEADS TO NEW OPPORTUNITIES

Smartphone Popularity

Cellular Data Growth

Wi-Fi Popularity

New Business Models

Expanded Capacity

Expanded Enterprise Business

Reduced TCO with 1 Site Location, 1 Installation, 1 Backhaul and Daisy Chaining

Market Conditions

New Opportunities


9363 Metro Cell Indoor MS

Plus Alcatel-Lucent

Wi-Fi Integrated Small Cells

Integrated Residential Gateway based on 9361 Home Cell SW Licensing



9365 BSR GATEWAYA POWERFUL PERFORMER

• Single gateway for Home, Enterprise and Metro Cells

• High capacity – 6X more capacity

• Highly scalable with pay-as-grow capacity

• Based on Alcatel-Lucent field proven ATCA v2 platform

• Carrier grade reliability with no single point of failure

Ready for Massive Small Cells Rollout



• Handles every task related to Small Cell management, including:‐ zero-touch provisioning‐ configuration updates‐ software upgrades‐ problem diagnosis & troubleshooting

• CPE-vendor-agnostic system capabilities based on the Broadband Forum TR-069 standard

• Proven solution‐ Over 80 global customer references‐ More than 40 million CPE under

management

MOTIVE HDMPART OF THE AWARD-WINNING DIGITAL HOME CARE SOLUTUION

Home Device Manager(HDM)

Customer Service Management

CSR CSCIPTV VoIP HSIA Firewall / Security …VoD

Network Analyzer

(5530 NA)

DevicesApplications

ServicesHome Networking

Security…

Call CenterOperationsMarketing

TR-69 Devices

Other Devices

Support

Maintenance

Activation

Assurance

SSC

Application Lifecycle Manager(ALM)

SMP



SELF-CONFIGURING AND SELF-OPTIMIZINGAVOIDING OPERATIONAL COMPLEXITY

Interference ManagementSelf-configuration Automatic Neighbor

Relation Handover

Optimization Load Balancing

Minimized Call DropsPlug & Play Reduced

Handover FailurePainless Network

Densification

Optimized Resource Usage &

Improved QoE

Integration

Optimization

Site acceptanceContinuous

optimizationOAM

Bell Labs SON Innovation



SECURITYTHREE LAYERS OF SECURITY

3GPP W-CDMA Network• 3GPP subscriber authentication• 3GPP ciphering for air interface

security

Small Cell Gateway• Network firewall• Authentication of small cell

signaling messages• Enforcement of ACL based on

operator consent

Small Cell Access Points• Sealed tamper-evident unit• Secure boot and upgrade procedure• Integrity checking of critical stored

data• Embedded network firewall

• IPSec Tunneling• Small cell authentication

‐ Shared secret based authentication

‐ Certificate-based authentication

‐ Dual certificate and USIM authentication (Future)

Between Small Cell Access Points and Small

Cell Gateway



SMALL CELLSFOR DEDICATED AND SHARED CARRIER DEPLOYMENT

Carrier #1 (macro)

Carrier #2 (small cell)

Shared single carrier

Shared multi-carrier

Increased in

novation

INTERFERENCE MANAGEMENT

Automatic power control

Automatic code allocation

Automatic coverage optimization

Network listening techniques

Automatic carrier selection

Optimized access point selection

Idle mode distribution

eICIC & frequency selective scheduler

Better coverageImproved spectral efficiencyReduced unnecessary handoversReduced signalling load

Directional and multi-array antenna technologies



HANDOVERSSEAMLESS MOBILITY WITH MACRO AND OTHER SMALL CELLS

Small Cell to Small Cell• Handovers supported for all calls (CS, PS and CS+PS)• Small cell to small cell within the same group• Small cell to small cell within different groups (future)

Small Cell to Macro Handovers• Handovers supported for calls (CS, PS and CS+PS)• Small cell to 3G macro• Small cell to 2G macro• UE assisted small cell to macro (increases success rate)• Intra-frequency small cell to 3G macro Mobile Assisted

Handover ( MAHO) (shared carrier deployment)

Macro to Small Cell Handovers• Handovers supported for all calls (CS, PS and CS+PS)• 3G macro to small cell• 2G macro to small cell



END-TO-END QUALITY OF SERVICEASSURING END USER SATISFACTION

SMALL CELL SOLUTION FEATURES

• DSCP QoS classification and Marking• Layer 2 QoS• Queue management• Traffic shaping• CAC• Backhaul bandwidth measurement• Dynamic MTU size adaptation• 2 IPSec tunnels• Real-Time Monitoring of backhaul bandwidth• RTCP for IuCS over IP

ALCATEL-LUCENT EXPERIENCE AND EXPERTISE

• Full End-to-end QoS Management Mastery• #1 in DSL - > 215 M lines shipped• #1 in GPON• Leading position in IP• Full ecosystem testing capabilities



FEATURES PER MARKET SEGMENTFOR ENHANCED HOME, ENTERPRISE AND METRO DEPLOYMENTS

HOMES• Access Control (Open,

Prioritized Open, close)

• Auto-configuration

• Self-optimization

• Handovers to/from macro

• Automatic carrier selection

• Continuous Coverage Optimization Based on Admission

ENTERPRISESHome feature set plus:

• Up to 32 Users per Enterprise Cell

• Small Cell Group Support

• Joint Coverage Optimization (future)

• Auto-configuration of Small Cell Neighbor List

• Small cell to Small Cell Handovers

• Extended ACL Size (up to 10K)

METROEnterprise feature set plus:

• Indoor and Outdoor Metro Cells

• Up to 32 Users per Metro Cell

• Service Based Redirection

• Increased paging Capacity for Large Metro Deployments

• Extended Cell and Speed Range (Rural)

• Enhanced Fault and Performance Management



SMALL CELL API AND THE APPLICATION ECOSYSTEMCAPTURING ADDITIONAL VALUE

• Rapidly create new services

• Provider-based apps or OTT/App content providers

- Enable location-aware services, personalized content push, and interaction with the environment based on proximity

• Blend the power of a trusted network with the innovation of the web

• From years to weeks, while controlling costs

Time

Identity

Location

Status

Apps API

Revenues

Services

Subscribers

Service provider

Developers

Payment

Security

Rich Location

B’cast/multicast



SMALL CELLS BASED APPLICATIONSARTGUIDE – AN EXAMPLE OF MUSEAM APPLICATION

Small Cells

Provides presence and location information via APIs to application server

Provides access control and facilitates user verification

Enables push personalized content and user interaction with the environment.

Museum ticketing service

User presence detection

Automatic Gate

Museum-Backend Systems

Content download and interaction

Software Provisioning

1

2

3

4a

4b

5

6



SMALL CELLS BASED APPLICATIONSEXAMPLE OF PRESENCE APPLICATIONS

Sally moves intogeo fence

•“Try the Pizza there. It’s Great!”

- Mike

•“Try the Pizza there. It’s Great!”

- Mike•I’m @ Club54

•C U there!” – Jen(social networking)

•I’m @ Club54•C U there!” – Jen

(social networking)

• Buy 1 cup get 2nd half off! -[coffee shop](mobile marketing)

• Buy 1 cup get 2nd half off! -[coffee shop](mobile marketing)

• Get 15% off @ -

[show store]

• Get 15% off @ -

[show store]•Antiques show 1 block North –

[show organizer]

•Antiques show 1 block North –

[show organizer]

Geo Fence

•Scorsese filmed “Taxi Driver”

here! – [movie trivia]

(premium content)

•Scorsese filmed “Taxi Driver”

here! – [movie trivia]

(premium content)



SMALL CELLS SERVICESSERVICES FOR FASTER MORE SUCCESSFUL MARKET LAUNCHES

• Market Entry Strategy

• Pricing Strategy• Financial Impact• Sensitivity Analysis• Network

Deployment• Risk Identification

• BSS integration for self-care, billings, and customer support

• OSS integration for simplified provisioning and troubleshooting

• RF planning and design services customized to meet enterprises’coverage and capacity needs

• Locates data traffic hotspots

• Calculates macro offload potential

• Performs economic modeling

• Makes recommendation

OPTIMAL HOTSPOT COVERAGE WITH

METRO CELL SERVICES

OPTIMIZED IN-BUILDING

COVERAGE WITH ENTERPRISE RF

SERVICE

IT INTEGRATION FOR SIMPLIFIED

SERVICE INTRODUCTION

DE-RISKED MARKET LAUNCH WITH

BUSINESS MODELING

Macro

Small CellMacro Only



Small Cells

1

3

2

WE ARE NEARING THE PRACTICAL LIMITS OF INFORMATION THEORY

• Small cells will become an absolute necessity

TODAY’S APPLICATION FOR COVERAGE AND CAPACITY IS JUST THE TIP OF THE ICEBERG

• Further development of the application ecosystem will yield additional value

ALL “SMALL CELLS” ARE NOT THE SAME• Omni and directional• Big and small• Full solutions versus point products• Diffusion of technology

alcatel femto - small cells for home, enterprise and metro

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