Femtocell Market Shares, Market Forecasts, and Market Strategies, 2008-2014

Table of Contents

Femtocell Executive Summary ES-1

Femtocell Base Station ES-1

Femtocell Forecasts ES-3

Femtocell Service Launches ES-5

1. Femtocell Market Description and Market Dynamics 1-1

1.1 Femtocell Base Station Services 1-1

1.1.1 Traditional FMC Model Support VoIP Calls Over The

IP Network 1-3

1.1.2 Femtocells Support VoIP Calls Over The IP Network 1-5

1.1.3 Session Border Controller (SBC) 1-5

1.1.4 SPIT Attack Simulation Project 1-5

1.2 T-Mobile Strategic Ubiquisys 3G Femtocell Positioning 1-7

1.3 Femtocells Small Consumer Devices 1-8

1.4 Femtocells Improve Cellular Coverage 1-9

1.4.1 Units The Size Of A Paperback Book 1-12

1.5 Increased Exposure To Radiation Is A Concern 1-12

1.6 SIP- Deployment 1-13

1.6.1 Telephone First Point Of Contact 1-14

1.6.2 SIP Application Server 1-15

1.6.3 SIP Applications 1-16

2. Femtocell Market Shares and Forecasts 2-1

2.1 Femtocell A Base Station 2-1

2.1.1 Femtocell Can Achieve Wireless Backhaul 2-4

2.1.2 Femtocell Advanced Functionality 2-8

2.2 Femtocell Forecasts 2-8

2.3 SMB Business Femtocell Market Forecasts 2-17

2.4 Femtocell Service Launches 2-25

2.4.1 Ubiquisys Google-Backed Company 2-27

2.4.2 T-Mobile's HotSpot@Home Service 2-28

2.4.3 Sprint Femtocell Trials 2-28

2.5 Carrier Adoption of Femtocells 2-29

2.6 Femtocell Market Participants 2-30

2.6.1 Ubiquisys 2-30

2.6.2 Ubiquisys Femtocell 2-31

2.6.3 Nokia Siemens 2-31

2.6.4 Netgear 2-31

2.6.5 Linksys 2-31

2.6.6 NextPoint Networks / ReefPoint Systems Announces A

Distribution Agreement With Samsung Electronics 2-32

2.6.7 Huawei 2-33

2.7 Femtocell Market Convergence Of Services 2-33

2.8 Femtocell Potential Benefits To Wireless Service Providers 2-35

2.8.1 Google 2-36

2.9 Broadband Subscribers 2-37

2.10 Business Use of Broadband 2-38

2.10.1 Challenges of 3G wireless broadband technology 2-41

2.11 Femtocell Business Case 2-43

2.12 Femtocell Pricing 2-43

2.13 Femtocell Regional Analysis 2-44

2.13.1 N. America 2-44

2.13.2 Western Europe 2-45

2.13.3 Asia-Pacific / Japan 2-45

3. Femtocell Product Description 3-1

3.1 ipaccess 3-1

3.1.1 ipaccess Oyster 3G 3-1

3.2.1 Architecture of Oyster 3G 3-2

3.2 Fujitsu Ultra-Compact Femtocell 3-6

3.3 Samsung 3-6

3.3.1 Samsung CDMA UbiCell 3-6

3.3.2 Samsung HSPA UbiCell 3-8

3.4 Airvana 3-11

3.3.1 Airvana CDMA HubBub 3-11

3.5 Ubiquisys 3-14

3.5.1 Ubiquisys ZoneGate Services Platform 3-15

3.5.2 Ubiquisys ZoneGate for Operators 3-16

3.5.3 Ubiquisys ZoneGate for Consumers 3-17

3.6 CCPU 3-17

3.6.1 CCPU’s Trillium Femtocell Software 3-17

3.6.2 Example of Trillium Femtocell Solutions 3-19

3.6.3 Femtocell Protocols Supported by CCPU 3-20

3.7 Airwalk 3-21

3.7.1 Airwalk EdgePoint 3-21

3.8 Aricent 3-24

3.9 RadioFrame Networks 3-26

3.8.1 RadioFrame OmniCell@Home 3-27

3.10 Nokia Siemens Networks 3-28

3.11 Huawei 3-30

3.12 picoChip 3-32

3.12.1 picoChip PC82x8 series 3-32

3.12.2 picoChip PC8209 series 3-33

3.13 Ericsson 3-36

3.13.1 Ericsson Home 3G Access Point 3-37

3.14 Kineto Wireless 3-37

3.15 Juniper Networks 3-37

3.16 Sonus Networks 3-38

3.17 2Wire 3-38

3.18 NextPoint 3-39

3.19 Rakon 3-40

4. Femtocell Technology 4-1

4.1 Technology Trends in Femtocells 4-1

4.2 Collapsed Stack 4-2

4.2.1 UMA core 4-2

4.2.2 SIP or IMS 4-3

4.3 IP Multimedia Subsystems 4-3

4.3.1 Fixed / Mobile Convergence (FMC) 4-7

4.4 Unified Communications 4-9

4.4.1 IP Can Enable Consolidation Of Fixed And

Mobile Networks 4-13

4.4.2 SIP Protocol In Mobile Devices 4-14

4.4.3 Handoff Mechanism Between The Femtocell

Mini-Base Station And An External Cell Tower 4-14

4.5 Converged Edge Platform 4-15

4.6 IMS Architecture Provides Session Services 4-17

4.6.1 Simplifying Network Operation at the Media Layer 4-18

4.7 Femto Forum Standards and Open Systems Initiatives 4-19

4.7.1 Femtocell Technology Open Standards 4-20

4.7.2 Femtocell Forum Members 4-21

4.8 SIP Integration With IP And Rich Media Applications 4-23

4.8.1 Standards Based Signaling Technology Session

Initiation Protocol (SIP). 4-23

4.8.2 SIP Presence 4-26

4.8.3 SIP Actions 4-26

4.8.4 SIP Helps Sales 4-27

4.8.5 SIP Trunks & Benefits 4-27

4.8.6 SIP Reduction In The Cost Of Networking 4-27

4.9 SIP PBXs' Based On Linux 4-32

4.9.1 Cisco SIP 4-33

4.9.2 Cisco Unified Communication System 4-33

4.10 VoIP Gateways 4-34

4.11 Huawei Clock over IP 4-36

5. Femtocell Company Profiles 5-1

5.1 2Wire 5-1

5.1.1 Partners/Customers 5-1

5.1.2 Revenue 5-1

5.2 Alcatel-Lucent 5-2

5.2.1 Financials 5-3

5.2.2 Alcatel - Lucent Revenue by Region and Business Group 5-4

5.2.3 Alcatel--Lucent and NEC 5-4

5.2.4 Rationale for LTE Joint Venture Combining 5-5

5.2.5 Customer List 5-6

5.2.6 Partners 5-6

5.3 Airvana 5-6

5.4 AirWalk Communications 5-9

5.4.1 Partners 5-9

5.4.2 Customers 5-10

5.5 Aricent 5-10

5.5.1 Customers 5-11

5.5.2 Strategy 5-12

5.5.3 Investors 5-12

5.5.4 Partners 5-12

5.5.5 Finance 5-13

5.6 Cisco 5-13

5.6.1 Cisco Net Sales: 5-14

5.6.2 BT and Cisco VoIP Connectivity To

Cambridge University Users 5-16

5.6.3 Cisco SMB 5-16

5.7 Continuous Computing 5-17

5.7.1 Customers 5-17

5.7.2 Partners 5-18

5.8 Ericsson 5-18

5.8.1 Customers 5-19

5.9 Fujitsu 5-19

5.10 Google 5-21

5.11 Huawei 5-21

5.11.1 Huawei Next Generation Telecommunications Networks 5-22

5.11.2 Huawei Strategy 5-22

5.11.3 Huawei Partners 5-23

5.11.4 Huawei Global Operations 5-23

5.11.5 Huawei 5-24

5.11.6 Huawei Strategy 5-24

5.11.7 Partners 5-24

5.11.8 Global Operations 5-25

5.11.9 Financials 5-25

5.11.10 Huawei Files 26,880 Patent Applications 5-27

5.11.11 Huawei Standards & Patents 5-27

5.11.12 Huawei Core Technology Systems Architecture 5-30

5.11.13 Huawei Procucts 5-31

5.11.14 Huawei Key Partnerships 5-32

5.11.15 Huawei Technologies and 3Com Focus on

Enterprise Data Networking 5-33

5.12 Ip.access 5-33

5.12.1 Ip.access Investors 5-34

5.12.2 Partners 5-35

5.13 InfiNet Wireless 5-35

5.13.1 Global Strategic Partners 5-36

5.14 Juniper Networks 5-36

5.14.1 Strategy 5-37

5.14.2 Customers 5-37

5.14.3 Partners 5-38

5.15 Kineto 5-38

5.15.1 Customers 5-39

5.15.2 Partners 5-39

5.16 Motorola 5-39

5.16.1 Financials 5-40

5.16.2 Partners 5-42

5.17 NextPoint 5-42

5.17.1 NextPoint Networks Global, Fixed-Mobile Convergence 5-43

5.17.2 NextPoint Networks / Reefpoint Systems 5-45

5.17.3 Customers 5-47

5.18 Nokia-Siemens 5-48

5.18.1 Strategy 5-48

5.18.2 Financials 5-49

5.18.3 Customers 5-50

5.18.4 Partners 5-50

5.18.5 Nokia Mobile Communications 5-50

5.18.6 Siemens AG 5-51

5.18.7 Siemens Networks LLC 5-54

5.18.8 Siemens 5-55

5.19 Nortel 5-56

5.19.1 Results of Operations 5-56

5.20 picoChip 5-62

5.20.1 Investors 5-62

5.20.2 Partners 5-62

5.20.3 Finance 5-63

5.21 RadioFrame Networks 5-63

5.21.1 RadioFrame Networks Investors 5-64

5.21.2 RadioFrame Networks Strategy 5-65

5.21.3 RadioFrame Networks Partners 5-65

5.22 Rakon 5-66

5.22.1 Financials 5-66

5.22.2 Partners 5-66

5.23 Samsung 5-67

5.23.1 Samsung 5-67

5.23.2 Samsung Strategy 5-69

5.23.3 Samsung Electronics Financials 5-70

5.23.4 Samsung Partners 5-70

5.23.5 Samsung Information Technology Division (ITD) 5-70

5.23.6 Samsung Electronics Global Leader 5-71

5.24 Sonus Networks 5-71

5.24.1 Customers 5-72

5.24.2 Partners 5-72

5.24.3 Revenue 5-72

5.25 Texas Instruments 5-73

5.25.1 Texas Instrument Femtocell Strategic Positioning 5-73

5.26 Ubiquisys 5-74

5.26.1 Partners 5-74

5.26.2 Customers 5-74

5.27 ZTE 5-75

5.27.1 Partners 5-75

5.27.2 Financials 5-76

6. Worldwide Mid Market Business Size and Go To

Market Strategies 6-1

6.1 Global Digital Environment Depends on

Leadership and Partnering 6-1

6.1.1 Channel Partner Strategy 6-2

6.1.2 IBM Global Innovation Outlook 6-4

6.1.3 Cisco Leads with On Line Technology Message 6-5

6.1.4 Vision of Intelligent Information Networks to Leverage

Technology Innovation and the Internet 6-6

6.1.5 Microsoft, Intel, and Hewlett-Packard Have A Small

And Medium Enterprise (SME) Consortium 6-7

6.2 Enabling Small and Mid Size Business Environment 6-8

6.3 Growth Potential Of Small Businesses Becoming

Mid Size Businesses 6-9

6.3.1 U.S. Small and Mid Market Size Business

Revenue Growth 6-9

6.3.1 U.S. Small and Mid Market Size Business

IT and Broadband Equipment Spending Growth 6-11

6.3.2 Worldwide Small and Mid Market Size Business

IT and Broadband Equipment Spending Growth 6-13

6.3.3 Worldwide Small and Mid Market Size

Business Communications and Network Spending Growth 6-14

6.4 Worldwide SMB Market Size and Growth 6-16

6.5 SMB As Percent Of Country / Region / World GDP 6-22

6.5.1 Asian Pacific SMBs Adopting IT at High Rate 6-27

6.6 Challenges Facing Small To Medium Businesses (SMBs) 6-30

6.6.1 Exporting 6-30

6.6.2 Mid Size Business Global Opportunity 6-31

6.6.3 Critical to the World Economy 6-32

6.6.4 Internet As An Integral Part Of The Global Economy 6-33

6.6.5 Internet-Based Businesses 6-34

6.6.6 Digital Inclusion 6-35

6.7 SMB Research And Analysis Highlights 6-35

6.7.1 What Constitutes A Small Business? 6-36

6.7.2 US 6-36

6.7.3 Germany 6-38

6.7.4 Economic Growth In Europe 6-38

6.7.5 SMB Broadband in Southeast Asia 6-41

6.7.6 BPM in SMBs 6-42

6.7.7 Broadband in SMBs 6-43

6.7.8 Hong Kong 6-44

6.7.9 Australia 6-44

6.7.10 South Korea 6-44

6.7.11 Japan 6-45

6.7.12 Russia 6-45

6.7.13 Exports 6-46

6.7.14 SME Requirements And How A Smart

Marketing And Sales Executive Addresses Them 6-46

6.7.15 India 6-47

6.7.16 Pakistan 6-48

List of Tables and Figures

Table ES-1 ES-2

Femtocell Market Advantages

Figure ES-2 ES-5

Worldwide Home and SMB Femtocell Market Forecasts,

Dollars, 2008-2014

Figure 1-1 1-2

Fixed Mobile Convergence Handset Illustration

Table 1-2 1-7

T-Mobile Strategic Ubiquisys 3G Femtocell Positioning

Figure 1-3 1-9

Femtocell Architecture

Table 2-1 2-2

Femtocell Market Advantages

Table 2-2 2-3

Femtocell Market Difficulties

Table 2-3 2-5

Femtocell Market Driving Forces

Table 2-4 2-6

Femtocell Market Aspects

Table 2-5 2-7

Femtocell Technology Benefits

Figure 2-6 2-10

Worldwide Home and SMB Femtocell Market Forecasts,

Dollars, 2008-2014

Figure 2-7 2-11

Worldwide Consumer and SMB Business Use of Femtocells

Market Forecasts, Dollars, 2008-2014

Figure 2-8 2-12

Worldwide Home Femtocell Market Forecasts, Dollars, 2008-2014

Figure 2-9 2-13

Worldwide Consumer Use of Femtocell Market Forecasts,

Dollars, 2008-2014

Figure 2-10 2-14

Worldwide Femtocell Market Penetration Market Forecasts,

Units, 2008-2014

Figure 2-11 2-16

Worldwide Household Femtocell Market Penetration, Market

Forecasts, Percent, 2008-2014

Figure 2-12 2-18

Worldwide SMB Business Femtocell Market Forecasts,

Dollars, 2008-2014

Figure 2-13 2-19

Worldwide Small and Mid Size Business Use of Femtocell

Market Forecasts, Dollars, 2008-2014

Figure 2-14 2-19

Worldwide Femtocell Small and Mid Size Business

Market Penetration, Market Forecasts, Number of

Businesses, Units, 2008-2014

Figure 2-15 2-21

Worldwide Femtocell Small and Mid Size Business

Market Penetration, Market Forecasts, Number of

Businesses, Units, 2008-2014

Figure 2-16 2-23

Worldwide Femtocell Small and Mid Size Business

Market Penetration, Market Forecasts, Number of

Businesses, 2008-2014

Figure 2-17 2-24

Worldwide Femtocell Small and Mid Size Business

Market Penetration, Market Forecasts, Number of

Businesses, Percent, 2008-2014

Figure 2-18 2-25

Worldwide Femtocell Small and Mid Size Business

Market Forecasts, Number of Businesses, 2008-2014

Figure 2-19 2-39

Femtocell Architecture Installed Indoors

Figure 2-20 2-40

Femtocell Home Architecture

Figure 3-1 3-1

ipaccess Oyster 3G Femtocell

Table 3-2 3-2

Advantages of Oyster 3G

Table 3-3 3-3

Advantages of Oyster 3G Access Point

Table 3-4 3-4

Advantages of Oyster 3G Access Controller

Table 3-5 3-5

Services Provided by Oyster 3G Manager

Figure 3-6 3-7

Samsung CDMA UbiCell

Table 3-7 3-8

Advantages of Samsung CDMA UbiCell

Figure 3-8 3-9

Samsung HSPA UbiCell

Figure 3-9 3-9

Samsung HSPA UbiCell

Table 3-10 3-10

Advantages of Samsung HSPA UbiCell

Figure 3-11 3-12

Airvana CDMA HubBub Network Architecture

Table 3-12 3-12

Features of Airvana CDMA HubBub

Table 3-13 3-13

Operator Benefits Provided By Airvana Femtocell Solutions

Table 3-14 3-13

Consumer Benefits Provided By Airvana Femtocell Solutions

Figure 3-15 3-15

Ubiquisys ZoneGate

Figure 3-16 3-16

Ubiquisys Home Zone Gateway

Table 3-17 3-18

Services offered by CCPU Trillium Femtocell Software

Figure 3-18 3-19

SIP Interface to Core Network

Figure 3-19 3-20

Trillium 3G / 4G Wireless Product Family

Figure 3-20 3-22

Airwalk EdgePoint

Table 3-21 3-23

Operator Benefits of Airwalk EdgePoint

Table 3-22 3-24

Residential Consumer Benefits of Airwalk EdgePoint

Table 3-23 3-25

Advantages of Aricent Femtocell Solutions

Table 3-24 3-26

Advantages of RadioFrame Base Station

Figure 3-25 3-27

RadioFrame’s OmniCell@Home

Figure 3-26 3-29

Nokia Siemens Networks 3G Femto Home Access Points

Table 3-27 3-29

User Advantages of Nokia Siemens Networks 3G Femto

Home Access Points 29

Table 3-28 3-30

Operator Advantages of Nokia Siemens Networks 3G

Femto Home Access Points 30

Figure 3-29 3-32

Femtocell Home Coverage System

Table 3-30 3-35

picoChip Developments in the area of Femtocell

Figure 3-31 3-36

Three Possible Femtocell Architectures

Table 3-32 3-39

NextPoint FCG Features

Figure 4-1 4-5

Motorola Service Provider Technology Positioning

Figure 4-2 4-6

Motorola Femtocell Technology Evolution

Figure 4-3 4-10

Unified Communications Exchange

Figure 4-4 4-11

Unified Communications Voice Data Integration

Figure 4-5 4-16

Converged Edge Platform Architecture

Figure 4-6 4-18

IMS Architecture Session Service

Table 4-7 4-25

Session Initiation Protocol SIP Benefits

Table 4-8 4-29

avaya.com SIP Protocols

Table 4-8 (Continued) 4-30

avaya.com SIP Protocols

Table 4-9 4-31

Avaya SIP Creates System Flexibility

Figure 4-10 4-33

Cisco Unified Communication System

Table 4-11 4-35

Transitioning From Physical To Virtual Contact Centers

Table 4-11 (Continued) 4-36

Transitioning From Physical To Virtual Contact Centers

Figure 5-1 5-4

Alcatel – Lucent Revenue by Region and Business Group

Table 5-2 5-28

Huawei Standards & Patents

Table 5-3 5-29

Huawei Key Telecommunications Technologies

Table 5-4 5-32

Huawei Products And Solutions

Figure 5-5 5-53

Siemens Addresses Market Shifts for IP PBX

Figure 5-6 5-54

Siemens Reorganization Closer to Customer

Figure 6-1 6-10

U.S. Small and Medium Size Businesses, Number 2008-2014

Figure 6-2 6-11

U.S. Small and Medium Size Business IT and Broadband

Equipment Spending, Market Forecast, Dollars, 2008-2014

Figure 6-3 6-12

U.S. Small and Medium Size Business IT Spending

Forecasts, Dollars, 2008-2014

Figure 6-4 6-13

Worldwide Small and Mid Market Business Forecasts,

Dollars, 2008-2014

Figure 6-5 6-14

Worldwide Small And Mid Market Business

Communications And Network Spending

Forecasts, Dollars, 2008-2014

Table 6-6 6-15

Worldwide Small and Medium Size Business IT and

Broadband Communications Spending Market Forecast,

Dollars, 2008-2014

Figure 6-7 6-16

Worldwide Small and Medium Businesses by Region, 2006

Figure 6-8 6-17

Worldwide SMB Small and Medium Business Regional

Segments, 2007

Table 6-9 6-18

Worldwide Small and Medium Businesses by Region,

Number, 2006-2006

Table 6-10 6-19

Worldwide Small and Medium Businesses by Region,

Number, 2007-2014

Table 6-11 6-20

Worldwide Small and Medium Businesses by Region,

Percent, 2006

Figure 6-12 6-21

Worldwide Revenue of Small and Medium Businesses by

Region, Dollars, 2006

Table 6-13 6-22

Worldwide Small and Medium Businesses As A

Percent of GNP, 2006

Table 6-14 6-23

Worldwide Small and Medium Businesses As A

Percent of Regional GNP, 2006

Table 6-15 6-49

GDP Analysis of Indian Economy