Post on 30-May-2020
1
Femtocells as a Tool for Data Off-Load November 18th 2010
CDG-Femto Forum Live Webinar
How Femtocells are Enhancing CDMA Networks
Sameer Lalwani Staff Manager Qualcomm
2
Attractive Femtocell offering
Maximize End-User Value and Reduce Network Costs
New Services home
tariffs and bundles
Enhanced
Coverage
Increased Capacity(reduce backhaul site costs)
Enhanced user
Experience
Subsidy Model
Reduced CostReduced Churn New Revenue
Added End-User Value
3
Data Usage Increasing RapidlymdashMajority of Voice and Data Usage Indoors
Femtocells are a low cost solution to increase indoor coverage
increase capacity and enhance user experience
By 2014 monthly worldwide mobile data traffic will exceed the total for all of 2008
ndashABI Research August 2009
ldquo
rdquo
Mobile data expected to grow with compounded annual growth rate (CAGR) of close to 75 over the next 5 YearsndashUS Mobile Data Consumption Trends January
2010 FROST amp SULLIVAN
ldquo
rdquo
70 of all voice and data traffic indoor in 20081
ndashInforma 2008
ldquordquo
Average MB per subscriber will increase with CAGR of 40 -60 over the next 4 years
ndashSmartphones Arms Race of Today
amp Future Issues ABI Research August 2010
ldquo
rdquo
55 - 70 of all mobile data traffic happens indoor ndashCisco Visual Networking Index Global
Mobile Data Traffic Forecast 2010
ldquordquo
4
Network Traffic Characteristics
0
20
40
60
80
100
0 10 20 30 40 50 60
o
f S
ite
s
BH
cdf
0
5
10
15
20
25
30
0 5 10 15 20 25
o
f S
ite
s
Hour
Dense
Rural
Suburban
Urban
Total
bull For majority of sites is between 700pm to 1100pm
bull Most people are indoors
Busy Hour
bull For majority of sites is between 10 to 25
Busy Hour (traffic during Busy Hour)
bull Reduce Busy Hour (BH) Traffic
bull Offload BH traffic generated by users who are indoors since they dont require mobility offered by WAN
bull Reduction in BH traffic translates to reduction in BTS Backhaul BSC expenditure
Goal Reduce Network Expense
5
Network Traffic Distribution The 80-20 rule
0
10
20
30
40
50
60
70
80
90
100
0 20 40 60 80 100
o
f N
etw
ork
T
raff
ic
of Subscribers
1 ATampT estimates that 35 of all smartphone users generate more than 200MB per month with 2 of these generating as much as 2 GB per month
httpwwwattcomgenpress-roompid=17991ampcdvn=newsampnewsarticleid=30854ampmapcode=financial|Wireless
2 The top 1 percent of broadband connections is responsible for more than 20 percent of total Internet traffic The top 10 percent of connections is responsible for over 60
percent of broadband Internet traffic worldwide
Cisco Visual Networking Index Global Mobile Data Traffic Forecast Update 2009-2014
httpwwwciscocomenUSsolutionscollateralns341ns525ns537ns705Cisco_VNI_Usage_WPpdf
bull 10 of highest users generate 70 of network traffic
bull Disproportionate impact on Network traffic when compared to their count
bull Reducing traffic generated by Data Hogs reduces Total Network Traffic significantly
―Data Hogs
High Data
Subs
6
CDMA2000 Network Architecture amp Benefits of Femto
Handset BTS BSC PDSN Internet
Handset
Reduction in Traffic
over Air Interface
(Improved User Exp) Lower BTS
Requirement
(Lower NetEx)
Lower
Backhaul
Requirement
(Lower Opex)
Reduced Processing amp
Traffic Req
( Improved User Exp)
Femto AP
BTSBSC
functions Femto
SeGWInternet
BTS Base Station
PDSN Packet Data Serving Node
Femto SeGW Femto Security Gateway provides Access authentication and IPSec connection
Macro
Network
Femto
Network
7
Traffic Offload CaseResidential Femto Users
Morphology
Dense Urban
Urban
Suburban
Night Pops
[Million]
175
15
38
3G Subs [Million]
036
031
079
Operator Household [Thousand]
280
220
550
Femto[Thousand]
11 - 28
9 - 22
22 - 55
bullOperator Market Penetration 35
bull3G Device Market Share 60
bullHouseholds with Femto 4 - 10
bullFemto per Household 1
8
10 of Total Subs are High
Data Subs
Impact of Increasing Traffic on Site Count
-
200
400
600
800
1000
1200
1400
1600
0 500 1000 1500 2000
Sit
e C
ou
nt
Traffic (MBSubMonth)
Site Count vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
Delay Cell Splitting
with Femto
Macro Cell Splitting
bull Offloading ―data hogs to femtocell substantially reduces macro networksrsquo traffic
Data Offloading
bull In many areas it is not possible to add more new sites leaving operators with very few options
Macro Cell Splitting
9
Impact of Site Count on NetEx
0
50
100
150
200
250
0 500 1000 1500 2000
An
nu
al
NetE
xS
ub
US
D
Traffic (MBSubMonth)
NetEx vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
45 Saving
in NetEx
bull ~10 of subscribers use 70 to 80 of bandwidth1
ldquoData hogsrdquo too costly
bull NetExMBSub2 for 1GBSub case is 40 lower when 60 of ―data hogs moved to Femtocells
Femtocellssubstantially improve network economics
Sources
1 various operators
2 NetExSubMonth Calculated using $GB values for Today from ―Femtocells --- Natural Solution for Offload
3 Residential Femtocell Cost $175 Amount paid by subscriber $50 Gateway amp provisioning cost $50
4 Enterprise Femtocell Cost $500 Gateway amp provisioning cost $100
5 White Paper ―Femtocells a cost-effective solution for network traffic offload available on request
NetEx Depreciated Capex + Opex
10
Conclusion
Femtorsquos Can be Used to Delay Cell Splitting or the Need for Additional Carriers
Targeting Heavy Data Users Provides More Bang for the Buck
Femto Cost Recovery From Subscribers Would Result In Savings at Lower Traffic Levels
11
Questions Connect with Us
httpwwwqualcommcomfemto
httpwwwqualcommcomblogcontributorsprakash-sangam
qualcomm_tech
httpmqualcommcomfemto
12
Thank You
2
Attractive Femtocell offering
Maximize End-User Value and Reduce Network Costs
New Services home
tariffs and bundles
Enhanced
Coverage
Increased Capacity(reduce backhaul site costs)
Enhanced user
Experience
Subsidy Model
Reduced CostReduced Churn New Revenue
Added End-User Value
3
Data Usage Increasing RapidlymdashMajority of Voice and Data Usage Indoors
Femtocells are a low cost solution to increase indoor coverage
increase capacity and enhance user experience
By 2014 monthly worldwide mobile data traffic will exceed the total for all of 2008
ndashABI Research August 2009
ldquo
rdquo
Mobile data expected to grow with compounded annual growth rate (CAGR) of close to 75 over the next 5 YearsndashUS Mobile Data Consumption Trends January
2010 FROST amp SULLIVAN
ldquo
rdquo
70 of all voice and data traffic indoor in 20081
ndashInforma 2008
ldquordquo
Average MB per subscriber will increase with CAGR of 40 -60 over the next 4 years
ndashSmartphones Arms Race of Today
amp Future Issues ABI Research August 2010
ldquo
rdquo
55 - 70 of all mobile data traffic happens indoor ndashCisco Visual Networking Index Global
Mobile Data Traffic Forecast 2010
ldquordquo
4
Network Traffic Characteristics
0
20
40
60
80
100
0 10 20 30 40 50 60
o
f S
ite
s
BH
cdf
0
5
10
15
20
25
30
0 5 10 15 20 25
o
f S
ite
s
Hour
Dense
Rural
Suburban
Urban
Total
bull For majority of sites is between 700pm to 1100pm
bull Most people are indoors
Busy Hour
bull For majority of sites is between 10 to 25
Busy Hour (traffic during Busy Hour)
bull Reduce Busy Hour (BH) Traffic
bull Offload BH traffic generated by users who are indoors since they dont require mobility offered by WAN
bull Reduction in BH traffic translates to reduction in BTS Backhaul BSC expenditure
Goal Reduce Network Expense
5
Network Traffic Distribution The 80-20 rule
0
10
20
30
40
50
60
70
80
90
100
0 20 40 60 80 100
o
f N
etw
ork
T
raff
ic
of Subscribers
1 ATampT estimates that 35 of all smartphone users generate more than 200MB per month with 2 of these generating as much as 2 GB per month
httpwwwattcomgenpress-roompid=17991ampcdvn=newsampnewsarticleid=30854ampmapcode=financial|Wireless
2 The top 1 percent of broadband connections is responsible for more than 20 percent of total Internet traffic The top 10 percent of connections is responsible for over 60
percent of broadband Internet traffic worldwide
Cisco Visual Networking Index Global Mobile Data Traffic Forecast Update 2009-2014
httpwwwciscocomenUSsolutionscollateralns341ns525ns537ns705Cisco_VNI_Usage_WPpdf
bull 10 of highest users generate 70 of network traffic
bull Disproportionate impact on Network traffic when compared to their count
bull Reducing traffic generated by Data Hogs reduces Total Network Traffic significantly
―Data Hogs
High Data
Subs
6
CDMA2000 Network Architecture amp Benefits of Femto
Handset BTS BSC PDSN Internet
Handset
Reduction in Traffic
over Air Interface
(Improved User Exp) Lower BTS
Requirement
(Lower NetEx)
Lower
Backhaul
Requirement
(Lower Opex)
Reduced Processing amp
Traffic Req
( Improved User Exp)
Femto AP
BTSBSC
functions Femto
SeGWInternet
BTS Base Station
PDSN Packet Data Serving Node
Femto SeGW Femto Security Gateway provides Access authentication and IPSec connection
Macro
Network
Femto
Network
7
Traffic Offload CaseResidential Femto Users
Morphology
Dense Urban
Urban
Suburban
Night Pops
[Million]
175
15
38
3G Subs [Million]
036
031
079
Operator Household [Thousand]
280
220
550
Femto[Thousand]
11 - 28
9 - 22
22 - 55
bullOperator Market Penetration 35
bull3G Device Market Share 60
bullHouseholds with Femto 4 - 10
bullFemto per Household 1
8
10 of Total Subs are High
Data Subs
Impact of Increasing Traffic on Site Count
-
200
400
600
800
1000
1200
1400
1600
0 500 1000 1500 2000
Sit
e C
ou
nt
Traffic (MBSubMonth)
Site Count vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
Delay Cell Splitting
with Femto
Macro Cell Splitting
bull Offloading ―data hogs to femtocell substantially reduces macro networksrsquo traffic
Data Offloading
bull In many areas it is not possible to add more new sites leaving operators with very few options
Macro Cell Splitting
9
Impact of Site Count on NetEx
0
50
100
150
200
250
0 500 1000 1500 2000
An
nu
al
NetE
xS
ub
US
D
Traffic (MBSubMonth)
NetEx vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
45 Saving
in NetEx
bull ~10 of subscribers use 70 to 80 of bandwidth1
ldquoData hogsrdquo too costly
bull NetExMBSub2 for 1GBSub case is 40 lower when 60 of ―data hogs moved to Femtocells
Femtocellssubstantially improve network economics
Sources
1 various operators
2 NetExSubMonth Calculated using $GB values for Today from ―Femtocells --- Natural Solution for Offload
3 Residential Femtocell Cost $175 Amount paid by subscriber $50 Gateway amp provisioning cost $50
4 Enterprise Femtocell Cost $500 Gateway amp provisioning cost $100
5 White Paper ―Femtocells a cost-effective solution for network traffic offload available on request
NetEx Depreciated Capex + Opex
10
Conclusion
Femtorsquos Can be Used to Delay Cell Splitting or the Need for Additional Carriers
Targeting Heavy Data Users Provides More Bang for the Buck
Femto Cost Recovery From Subscribers Would Result In Savings at Lower Traffic Levels
11
Questions Connect with Us
httpwwwqualcommcomfemto
httpwwwqualcommcomblogcontributorsprakash-sangam
qualcomm_tech
httpmqualcommcomfemto
12
Thank You
3
Data Usage Increasing RapidlymdashMajority of Voice and Data Usage Indoors
Femtocells are a low cost solution to increase indoor coverage
increase capacity and enhance user experience
By 2014 monthly worldwide mobile data traffic will exceed the total for all of 2008
ndashABI Research August 2009
ldquo
rdquo
Mobile data expected to grow with compounded annual growth rate (CAGR) of close to 75 over the next 5 YearsndashUS Mobile Data Consumption Trends January
2010 FROST amp SULLIVAN
ldquo
rdquo
70 of all voice and data traffic indoor in 20081
ndashInforma 2008
ldquordquo
Average MB per subscriber will increase with CAGR of 40 -60 over the next 4 years
ndashSmartphones Arms Race of Today
amp Future Issues ABI Research August 2010
ldquo
rdquo
55 - 70 of all mobile data traffic happens indoor ndashCisco Visual Networking Index Global
Mobile Data Traffic Forecast 2010
ldquordquo
4
Network Traffic Characteristics
0
20
40
60
80
100
0 10 20 30 40 50 60
o
f S
ite
s
BH
cdf
0
5
10
15
20
25
30
0 5 10 15 20 25
o
f S
ite
s
Hour
Dense
Rural
Suburban
Urban
Total
bull For majority of sites is between 700pm to 1100pm
bull Most people are indoors
Busy Hour
bull For majority of sites is between 10 to 25
Busy Hour (traffic during Busy Hour)
bull Reduce Busy Hour (BH) Traffic
bull Offload BH traffic generated by users who are indoors since they dont require mobility offered by WAN
bull Reduction in BH traffic translates to reduction in BTS Backhaul BSC expenditure
Goal Reduce Network Expense
5
Network Traffic Distribution The 80-20 rule
0
10
20
30
40
50
60
70
80
90
100
0 20 40 60 80 100
o
f N
etw
ork
T
raff
ic
of Subscribers
1 ATampT estimates that 35 of all smartphone users generate more than 200MB per month with 2 of these generating as much as 2 GB per month
httpwwwattcomgenpress-roompid=17991ampcdvn=newsampnewsarticleid=30854ampmapcode=financial|Wireless
2 The top 1 percent of broadband connections is responsible for more than 20 percent of total Internet traffic The top 10 percent of connections is responsible for over 60
percent of broadband Internet traffic worldwide
Cisco Visual Networking Index Global Mobile Data Traffic Forecast Update 2009-2014
httpwwwciscocomenUSsolutionscollateralns341ns525ns537ns705Cisco_VNI_Usage_WPpdf
bull 10 of highest users generate 70 of network traffic
bull Disproportionate impact on Network traffic when compared to their count
bull Reducing traffic generated by Data Hogs reduces Total Network Traffic significantly
―Data Hogs
High Data
Subs
6
CDMA2000 Network Architecture amp Benefits of Femto
Handset BTS BSC PDSN Internet
Handset
Reduction in Traffic
over Air Interface
(Improved User Exp) Lower BTS
Requirement
(Lower NetEx)
Lower
Backhaul
Requirement
(Lower Opex)
Reduced Processing amp
Traffic Req
( Improved User Exp)
Femto AP
BTSBSC
functions Femto
SeGWInternet
BTS Base Station
PDSN Packet Data Serving Node
Femto SeGW Femto Security Gateway provides Access authentication and IPSec connection
Macro
Network
Femto
Network
7
Traffic Offload CaseResidential Femto Users
Morphology
Dense Urban
Urban
Suburban
Night Pops
[Million]
175
15
38
3G Subs [Million]
036
031
079
Operator Household [Thousand]
280
220
550
Femto[Thousand]
11 - 28
9 - 22
22 - 55
bullOperator Market Penetration 35
bull3G Device Market Share 60
bullHouseholds with Femto 4 - 10
bullFemto per Household 1
8
10 of Total Subs are High
Data Subs
Impact of Increasing Traffic on Site Count
-
200
400
600
800
1000
1200
1400
1600
0 500 1000 1500 2000
Sit
e C
ou
nt
Traffic (MBSubMonth)
Site Count vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
Delay Cell Splitting
with Femto
Macro Cell Splitting
bull Offloading ―data hogs to femtocell substantially reduces macro networksrsquo traffic
Data Offloading
bull In many areas it is not possible to add more new sites leaving operators with very few options
Macro Cell Splitting
9
Impact of Site Count on NetEx
0
50
100
150
200
250
0 500 1000 1500 2000
An
nu
al
NetE
xS
ub
US
D
Traffic (MBSubMonth)
NetEx vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
45 Saving
in NetEx
bull ~10 of subscribers use 70 to 80 of bandwidth1
ldquoData hogsrdquo too costly
bull NetExMBSub2 for 1GBSub case is 40 lower when 60 of ―data hogs moved to Femtocells
Femtocellssubstantially improve network economics
Sources
1 various operators
2 NetExSubMonth Calculated using $GB values for Today from ―Femtocells --- Natural Solution for Offload
3 Residential Femtocell Cost $175 Amount paid by subscriber $50 Gateway amp provisioning cost $50
4 Enterprise Femtocell Cost $500 Gateway amp provisioning cost $100
5 White Paper ―Femtocells a cost-effective solution for network traffic offload available on request
NetEx Depreciated Capex + Opex
10
Conclusion
Femtorsquos Can be Used to Delay Cell Splitting or the Need for Additional Carriers
Targeting Heavy Data Users Provides More Bang for the Buck
Femto Cost Recovery From Subscribers Would Result In Savings at Lower Traffic Levels
11
Questions Connect with Us
httpwwwqualcommcomfemto
httpwwwqualcommcomblogcontributorsprakash-sangam
qualcomm_tech
httpmqualcommcomfemto
12
Thank You
4
Network Traffic Characteristics
0
20
40
60
80
100
0 10 20 30 40 50 60
o
f S
ite
s
BH
cdf
0
5
10
15
20
25
30
0 5 10 15 20 25
o
f S
ite
s
Hour
Dense
Rural
Suburban
Urban
Total
bull For majority of sites is between 700pm to 1100pm
bull Most people are indoors
Busy Hour
bull For majority of sites is between 10 to 25
Busy Hour (traffic during Busy Hour)
bull Reduce Busy Hour (BH) Traffic
bull Offload BH traffic generated by users who are indoors since they dont require mobility offered by WAN
bull Reduction in BH traffic translates to reduction in BTS Backhaul BSC expenditure
Goal Reduce Network Expense
5
Network Traffic Distribution The 80-20 rule
0
10
20
30
40
50
60
70
80
90
100
0 20 40 60 80 100
o
f N
etw
ork
T
raff
ic
of Subscribers
1 ATampT estimates that 35 of all smartphone users generate more than 200MB per month with 2 of these generating as much as 2 GB per month
httpwwwattcomgenpress-roompid=17991ampcdvn=newsampnewsarticleid=30854ampmapcode=financial|Wireless
2 The top 1 percent of broadband connections is responsible for more than 20 percent of total Internet traffic The top 10 percent of connections is responsible for over 60
percent of broadband Internet traffic worldwide
Cisco Visual Networking Index Global Mobile Data Traffic Forecast Update 2009-2014
httpwwwciscocomenUSsolutionscollateralns341ns525ns537ns705Cisco_VNI_Usage_WPpdf
bull 10 of highest users generate 70 of network traffic
bull Disproportionate impact on Network traffic when compared to their count
bull Reducing traffic generated by Data Hogs reduces Total Network Traffic significantly
―Data Hogs
High Data
Subs
6
CDMA2000 Network Architecture amp Benefits of Femto
Handset BTS BSC PDSN Internet
Handset
Reduction in Traffic
over Air Interface
(Improved User Exp) Lower BTS
Requirement
(Lower NetEx)
Lower
Backhaul
Requirement
(Lower Opex)
Reduced Processing amp
Traffic Req
( Improved User Exp)
Femto AP
BTSBSC
functions Femto
SeGWInternet
BTS Base Station
PDSN Packet Data Serving Node
Femto SeGW Femto Security Gateway provides Access authentication and IPSec connection
Macro
Network
Femto
Network
7
Traffic Offload CaseResidential Femto Users
Morphology
Dense Urban
Urban
Suburban
Night Pops
[Million]
175
15
38
3G Subs [Million]
036
031
079
Operator Household [Thousand]
280
220
550
Femto[Thousand]
11 - 28
9 - 22
22 - 55
bullOperator Market Penetration 35
bull3G Device Market Share 60
bullHouseholds with Femto 4 - 10
bullFemto per Household 1
8
10 of Total Subs are High
Data Subs
Impact of Increasing Traffic on Site Count
-
200
400
600
800
1000
1200
1400
1600
0 500 1000 1500 2000
Sit
e C
ou
nt
Traffic (MBSubMonth)
Site Count vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
Delay Cell Splitting
with Femto
Macro Cell Splitting
bull Offloading ―data hogs to femtocell substantially reduces macro networksrsquo traffic
Data Offloading
bull In many areas it is not possible to add more new sites leaving operators with very few options
Macro Cell Splitting
9
Impact of Site Count on NetEx
0
50
100
150
200
250
0 500 1000 1500 2000
An
nu
al
NetE
xS
ub
US
D
Traffic (MBSubMonth)
NetEx vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
45 Saving
in NetEx
bull ~10 of subscribers use 70 to 80 of bandwidth1
ldquoData hogsrdquo too costly
bull NetExMBSub2 for 1GBSub case is 40 lower when 60 of ―data hogs moved to Femtocells
Femtocellssubstantially improve network economics
Sources
1 various operators
2 NetExSubMonth Calculated using $GB values for Today from ―Femtocells --- Natural Solution for Offload
3 Residential Femtocell Cost $175 Amount paid by subscriber $50 Gateway amp provisioning cost $50
4 Enterprise Femtocell Cost $500 Gateway amp provisioning cost $100
5 White Paper ―Femtocells a cost-effective solution for network traffic offload available on request
NetEx Depreciated Capex + Opex
10
Conclusion
Femtorsquos Can be Used to Delay Cell Splitting or the Need for Additional Carriers
Targeting Heavy Data Users Provides More Bang for the Buck
Femto Cost Recovery From Subscribers Would Result In Savings at Lower Traffic Levels
11
Questions Connect with Us
httpwwwqualcommcomfemto
httpwwwqualcommcomblogcontributorsprakash-sangam
qualcomm_tech
httpmqualcommcomfemto
12
Thank You
5
Network Traffic Distribution The 80-20 rule
0
10
20
30
40
50
60
70
80
90
100
0 20 40 60 80 100
o
f N
etw
ork
T
raff
ic
of Subscribers
1 ATampT estimates that 35 of all smartphone users generate more than 200MB per month with 2 of these generating as much as 2 GB per month
httpwwwattcomgenpress-roompid=17991ampcdvn=newsampnewsarticleid=30854ampmapcode=financial|Wireless
2 The top 1 percent of broadband connections is responsible for more than 20 percent of total Internet traffic The top 10 percent of connections is responsible for over 60
percent of broadband Internet traffic worldwide
Cisco Visual Networking Index Global Mobile Data Traffic Forecast Update 2009-2014
httpwwwciscocomenUSsolutionscollateralns341ns525ns537ns705Cisco_VNI_Usage_WPpdf
bull 10 of highest users generate 70 of network traffic
bull Disproportionate impact on Network traffic when compared to their count
bull Reducing traffic generated by Data Hogs reduces Total Network Traffic significantly
―Data Hogs
High Data
Subs
6
CDMA2000 Network Architecture amp Benefits of Femto
Handset BTS BSC PDSN Internet
Handset
Reduction in Traffic
over Air Interface
(Improved User Exp) Lower BTS
Requirement
(Lower NetEx)
Lower
Backhaul
Requirement
(Lower Opex)
Reduced Processing amp
Traffic Req
( Improved User Exp)
Femto AP
BTSBSC
functions Femto
SeGWInternet
BTS Base Station
PDSN Packet Data Serving Node
Femto SeGW Femto Security Gateway provides Access authentication and IPSec connection
Macro
Network
Femto
Network
7
Traffic Offload CaseResidential Femto Users
Morphology
Dense Urban
Urban
Suburban
Night Pops
[Million]
175
15
38
3G Subs [Million]
036
031
079
Operator Household [Thousand]
280
220
550
Femto[Thousand]
11 - 28
9 - 22
22 - 55
bullOperator Market Penetration 35
bull3G Device Market Share 60
bullHouseholds with Femto 4 - 10
bullFemto per Household 1
8
10 of Total Subs are High
Data Subs
Impact of Increasing Traffic on Site Count
-
200
400
600
800
1000
1200
1400
1600
0 500 1000 1500 2000
Sit
e C
ou
nt
Traffic (MBSubMonth)
Site Count vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
Delay Cell Splitting
with Femto
Macro Cell Splitting
bull Offloading ―data hogs to femtocell substantially reduces macro networksrsquo traffic
Data Offloading
bull In many areas it is not possible to add more new sites leaving operators with very few options
Macro Cell Splitting
9
Impact of Site Count on NetEx
0
50
100
150
200
250
0 500 1000 1500 2000
An
nu
al
NetE
xS
ub
US
D
Traffic (MBSubMonth)
NetEx vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
45 Saving
in NetEx
bull ~10 of subscribers use 70 to 80 of bandwidth1
ldquoData hogsrdquo too costly
bull NetExMBSub2 for 1GBSub case is 40 lower when 60 of ―data hogs moved to Femtocells
Femtocellssubstantially improve network economics
Sources
1 various operators
2 NetExSubMonth Calculated using $GB values for Today from ―Femtocells --- Natural Solution for Offload
3 Residential Femtocell Cost $175 Amount paid by subscriber $50 Gateway amp provisioning cost $50
4 Enterprise Femtocell Cost $500 Gateway amp provisioning cost $100
5 White Paper ―Femtocells a cost-effective solution for network traffic offload available on request
NetEx Depreciated Capex + Opex
10
Conclusion
Femtorsquos Can be Used to Delay Cell Splitting or the Need for Additional Carriers
Targeting Heavy Data Users Provides More Bang for the Buck
Femto Cost Recovery From Subscribers Would Result In Savings at Lower Traffic Levels
11
Questions Connect with Us
httpwwwqualcommcomfemto
httpwwwqualcommcomblogcontributorsprakash-sangam
qualcomm_tech
httpmqualcommcomfemto
12
Thank You
6
CDMA2000 Network Architecture amp Benefits of Femto
Handset BTS BSC PDSN Internet
Handset
Reduction in Traffic
over Air Interface
(Improved User Exp) Lower BTS
Requirement
(Lower NetEx)
Lower
Backhaul
Requirement
(Lower Opex)
Reduced Processing amp
Traffic Req
( Improved User Exp)
Femto AP
BTSBSC
functions Femto
SeGWInternet
BTS Base Station
PDSN Packet Data Serving Node
Femto SeGW Femto Security Gateway provides Access authentication and IPSec connection
Macro
Network
Femto
Network
7
Traffic Offload CaseResidential Femto Users
Morphology
Dense Urban
Urban
Suburban
Night Pops
[Million]
175
15
38
3G Subs [Million]
036
031
079
Operator Household [Thousand]
280
220
550
Femto[Thousand]
11 - 28
9 - 22
22 - 55
bullOperator Market Penetration 35
bull3G Device Market Share 60
bullHouseholds with Femto 4 - 10
bullFemto per Household 1
8
10 of Total Subs are High
Data Subs
Impact of Increasing Traffic on Site Count
-
200
400
600
800
1000
1200
1400
1600
0 500 1000 1500 2000
Sit
e C
ou
nt
Traffic (MBSubMonth)
Site Count vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
Delay Cell Splitting
with Femto
Macro Cell Splitting
bull Offloading ―data hogs to femtocell substantially reduces macro networksrsquo traffic
Data Offloading
bull In many areas it is not possible to add more new sites leaving operators with very few options
Macro Cell Splitting
9
Impact of Site Count on NetEx
0
50
100
150
200
250
0 500 1000 1500 2000
An
nu
al
NetE
xS
ub
US
D
Traffic (MBSubMonth)
NetEx vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
45 Saving
in NetEx
bull ~10 of subscribers use 70 to 80 of bandwidth1
ldquoData hogsrdquo too costly
bull NetExMBSub2 for 1GBSub case is 40 lower when 60 of ―data hogs moved to Femtocells
Femtocellssubstantially improve network economics
Sources
1 various operators
2 NetExSubMonth Calculated using $GB values for Today from ―Femtocells --- Natural Solution for Offload
3 Residential Femtocell Cost $175 Amount paid by subscriber $50 Gateway amp provisioning cost $50
4 Enterprise Femtocell Cost $500 Gateway amp provisioning cost $100
5 White Paper ―Femtocells a cost-effective solution for network traffic offload available on request
NetEx Depreciated Capex + Opex
10
Conclusion
Femtorsquos Can be Used to Delay Cell Splitting or the Need for Additional Carriers
Targeting Heavy Data Users Provides More Bang for the Buck
Femto Cost Recovery From Subscribers Would Result In Savings at Lower Traffic Levels
11
Questions Connect with Us
httpwwwqualcommcomfemto
httpwwwqualcommcomblogcontributorsprakash-sangam
qualcomm_tech
httpmqualcommcomfemto
12
Thank You
7
Traffic Offload CaseResidential Femto Users
Morphology
Dense Urban
Urban
Suburban
Night Pops
[Million]
175
15
38
3G Subs [Million]
036
031
079
Operator Household [Thousand]
280
220
550
Femto[Thousand]
11 - 28
9 - 22
22 - 55
bullOperator Market Penetration 35
bull3G Device Market Share 60
bullHouseholds with Femto 4 - 10
bullFemto per Household 1
8
10 of Total Subs are High
Data Subs
Impact of Increasing Traffic on Site Count
-
200
400
600
800
1000
1200
1400
1600
0 500 1000 1500 2000
Sit
e C
ou
nt
Traffic (MBSubMonth)
Site Count vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
Delay Cell Splitting
with Femto
Macro Cell Splitting
bull Offloading ―data hogs to femtocell substantially reduces macro networksrsquo traffic
Data Offloading
bull In many areas it is not possible to add more new sites leaving operators with very few options
Macro Cell Splitting
9
Impact of Site Count on NetEx
0
50
100
150
200
250
0 500 1000 1500 2000
An
nu
al
NetE
xS
ub
US
D
Traffic (MBSubMonth)
NetEx vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
45 Saving
in NetEx
bull ~10 of subscribers use 70 to 80 of bandwidth1
ldquoData hogsrdquo too costly
bull NetExMBSub2 for 1GBSub case is 40 lower when 60 of ―data hogs moved to Femtocells
Femtocellssubstantially improve network economics
Sources
1 various operators
2 NetExSubMonth Calculated using $GB values for Today from ―Femtocells --- Natural Solution for Offload
3 Residential Femtocell Cost $175 Amount paid by subscriber $50 Gateway amp provisioning cost $50
4 Enterprise Femtocell Cost $500 Gateway amp provisioning cost $100
5 White Paper ―Femtocells a cost-effective solution for network traffic offload available on request
NetEx Depreciated Capex + Opex
10
Conclusion
Femtorsquos Can be Used to Delay Cell Splitting or the Need for Additional Carriers
Targeting Heavy Data Users Provides More Bang for the Buck
Femto Cost Recovery From Subscribers Would Result In Savings at Lower Traffic Levels
11
Questions Connect with Us
httpwwwqualcommcomfemto
httpwwwqualcommcomblogcontributorsprakash-sangam
qualcomm_tech
httpmqualcommcomfemto
12
Thank You
8
10 of Total Subs are High
Data Subs
Impact of Increasing Traffic on Site Count
-
200
400
600
800
1000
1200
1400
1600
0 500 1000 1500 2000
Sit
e C
ou
nt
Traffic (MBSubMonth)
Site Count vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
Delay Cell Splitting
with Femto
Macro Cell Splitting
bull Offloading ―data hogs to femtocell substantially reduces macro networksrsquo traffic
Data Offloading
bull In many areas it is not possible to add more new sites leaving operators with very few options
Macro Cell Splitting
9
Impact of Site Count on NetEx
0
50
100
150
200
250
0 500 1000 1500 2000
An
nu
al
NetE
xS
ub
US
D
Traffic (MBSubMonth)
NetEx vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
45 Saving
in NetEx
bull ~10 of subscribers use 70 to 80 of bandwidth1
ldquoData hogsrdquo too costly
bull NetExMBSub2 for 1GBSub case is 40 lower when 60 of ―data hogs moved to Femtocells
Femtocellssubstantially improve network economics
Sources
1 various operators
2 NetExSubMonth Calculated using $GB values for Today from ―Femtocells --- Natural Solution for Offload
3 Residential Femtocell Cost $175 Amount paid by subscriber $50 Gateway amp provisioning cost $50
4 Enterprise Femtocell Cost $500 Gateway amp provisioning cost $100
5 White Paper ―Femtocells a cost-effective solution for network traffic offload available on request
NetEx Depreciated Capex + Opex
10
Conclusion
Femtorsquos Can be Used to Delay Cell Splitting or the Need for Additional Carriers
Targeting Heavy Data Users Provides More Bang for the Buck
Femto Cost Recovery From Subscribers Would Result In Savings at Lower Traffic Levels
11
Questions Connect with Us
httpwwwqualcommcomfemto
httpwwwqualcommcomblogcontributorsprakash-sangam
qualcomm_tech
httpmqualcommcomfemto
12
Thank You
9
Impact of Site Count on NetEx
0
50
100
150
200
250
0 500 1000 1500 2000
An
nu
al
NetE
xS
ub
US
D
Traffic (MBSubMonth)
NetEx vs Monthly TrafficSub10MHz Spectrum
Macro Only
40
60
80
100
High Data Subs with Femto
45 Saving
in NetEx
bull ~10 of subscribers use 70 to 80 of bandwidth1
ldquoData hogsrdquo too costly
bull NetExMBSub2 for 1GBSub case is 40 lower when 60 of ―data hogs moved to Femtocells
Femtocellssubstantially improve network economics
Sources
1 various operators
2 NetExSubMonth Calculated using $GB values for Today from ―Femtocells --- Natural Solution for Offload
3 Residential Femtocell Cost $175 Amount paid by subscriber $50 Gateway amp provisioning cost $50
4 Enterprise Femtocell Cost $500 Gateway amp provisioning cost $100
5 White Paper ―Femtocells a cost-effective solution for network traffic offload available on request
NetEx Depreciated Capex + Opex
10
Conclusion
Femtorsquos Can be Used to Delay Cell Splitting or the Need for Additional Carriers
Targeting Heavy Data Users Provides More Bang for the Buck
Femto Cost Recovery From Subscribers Would Result In Savings at Lower Traffic Levels
11
Questions Connect with Us
httpwwwqualcommcomfemto
httpwwwqualcommcomblogcontributorsprakash-sangam
qualcomm_tech
httpmqualcommcomfemto
12
Thank You
10
Conclusion
Femtorsquos Can be Used to Delay Cell Splitting or the Need for Additional Carriers
Targeting Heavy Data Users Provides More Bang for the Buck
Femto Cost Recovery From Subscribers Would Result In Savings at Lower Traffic Levels
11
Questions Connect with Us
httpwwwqualcommcomfemto
httpwwwqualcommcomblogcontributorsprakash-sangam
qualcomm_tech
httpmqualcommcomfemto
12
Thank You
11
Questions Connect with Us
httpwwwqualcommcomfemto
httpwwwqualcommcomblogcontributorsprakash-sangam
qualcomm_tech
httpmqualcommcomfemto
12
Thank You
12
Thank You