Femtocells

Opportunities and Challenges for Business and Technology

Contents

The full table of contents is as follows:

Dedications. 13

Acknowledgements. 14

Foreword by Dr. Mike Short – Vice President – R&D , Telefónica O2 Europe. 15

Preface. 16

Abbreviations. 18

List of Figures. 40

List of Tables. 44

About the Authors. 45

1.        Introduction to Femtocells. 48

1.1         Introduction. 48

1.2         Why femtocells? The market context. 48

1.3         The Nature of Mobile Broadband Demand. 50

1.4         What is a Femtocell?. 52

1.4.1          Femtocell Definition. 54

1.4.2          Femtocell Standards. 55

1.4.3          Types of Femtocell 55

1.5         Applications for Femtocells. 56

1.6         What a femtocell is not. 57

1.7         The importance of ‘zero-touch’ 60

1.8         Customer benefits. 61

1.9         Operator Motivations and Economic Impact. 63

1.10      Operator Responses. 64

1.11      Challenges. 64

1.12      Chapter Overview.. 65

2         Small Cell Background and Success Factors. 67

2.1         Introduction. 67

2.2         Small Cell Motivations. 67

2.2.1          Cellular Principles. 67

2.2.2          Conventional Cell Types: Why “Femtocells”?. 68

2.2.3          Challenges of Achieving Indoor Coverage from Outdoor Macrocells. 70

2.2.4          Spectrum Efficiency. 71

2.2.5          Geometry factors. 73

2.2.6          The Backhaul Challenge. 74

2.3         Other Small Cell Systems. 75

2.3.1          Overview.. 75

2.3.2          Picocells. 75

2.3.3          Distributed Antenna Systems. 75

2.3.4          Wireless Local Area Networks. 77

2.4         The Small Cell Landscape. 79

2.5         Emergence of the Femtocell – Critical Success Factors. 80

2.5.1          Mobile data adoption and revenue growth. 81

2.5.2          Broadband Adoption. 82

2.5.3          Connecting Four Billion Users – and counting. 83

2.5.4          Internet Applications. 85

2.5.5          Fixed-Mobile Substitution. 87

2.5.6          User Device Availability. 88

2.5.7          Processing Power and Cost. 89

2.6         Conclusions. 90

3         Market Issues for Femtocells. 91

3.1         Key Benefits of a Femtocell from Market Perspective. 91

3.1.1          In-Home Coverage. 91

3.1.2          Macro Network Capacity Gain. 92

3.1.3          Termination Fees. 92

3.1.4          Simplistic Handset Approach. 92

3.1.5          Home Footprint and the Quadruple Play. 93

3.1.6          Maximising Returns on Spectrum Investment. 94

3.1.7          Churn Reduction — The Sticky Bundle. 94

3.1.8          Positive Impact on Subsidisation Trends. 95

3.1.9          Value-Added Services. 95

3.1.10        Changing User Behaviour. 96

3.1.11        Reducing Energy Consumption. 96

3.2         Key Primers. 96

3.2.1          Broadband Penetration. 96

3.2.2          Saturation. 97

3.2.3          Evolution in Carrier Business Model 98

3.2.4          Competition. 99

3.2.5          Technical Feasibility. 100

3.2.6          Economics. 101

3.2.7          Limitations in Other Services. 102

3.2.8          Carrier and Manufacturer Support. 103

3.2.9          Consumer Demand. 103

3.2.10        Supporting the Data Boom.. 104

3.2.11        Growing Standardisation. 105

3.2.12        Air Interface Technology Evolution. 105

3.3         Key Market Challenges. 105

3.3.1          Cost Pressure. 105

3.3.2          Intellectual Property Rights. 106

3.3.3          Technology Issues. 107

3.3.4          Establishing a “Sellable” Proposition. 107

3.3.5          Disconnect Between OEMs and Carriers. 108

3.3.6          Too Much Reliance on standards. 108

3.3.7          Window of Opportunity. 108

3.3.8          Developing the ecosystem.. 108

3.4         Business Cases for Femtocells. 109

3.4.1          Business Case Foundations. 109

3.4.2          Exploring the Economics. 110

3.5         Air Interface Choices. 114

3.5.1          GSM Advantages. 114

3.5.2          GSM Disadvantages. 114

3.5.3          WCDMA Advantages. 115

3.5.4          WCDMA Disadvantages. 115

3.5.5          Conclusions. 115

3.5.6          HSDPA, HSUPA, and HSPA+. 115

3.6         Product Feature Sets. 116

3.6.1          Standalone. 116

3.6.2          Broadband Gateway. 117

3.6.3          Wi-Fi Access Point. 117

3.6.4          TV Set-Top Box. 117

3.6.5          Video Distribution Mechanisms. 117

3.6.6          Segmentation. 118

3.7         Additional Considerations. 118

3.7.1          Enterprise Femtocells. 118

3.7.2          Super Femtocells and Outdoor Femtocells. 119

3.8         Adoption Forecasts & Volumes. 119

3.8.1          Methodology. 119

3.8.2          Forecasts. 122

3.9         Conclusions. 124

4         Radio Issues for Femtocells. 125

4.1         Introduction. 125

4.2         Spectrum Scenarios. 125

4.3         Propagation in femtocell environments. 127

4.4         Coverage. 128

4.5         Downlink Interference. 130

4.6         Interference challenges and Mitigations. 133

4.7         Femto to Femto Interference. 135

4.8         System Level Performance. 137

4.9         RF Specifications in WCDMA.. 140

4.10      Health and Safety Concerns. 142

4.11      Conclusions. 145

5         Femtocell Networks and Architectures. 148

5.1         Introduction. 148

5.2         Challenges. 148

5.3         Requirements. 149

5.4         Femto Architectures and Interfaces. 151

5.5         Key Architectural Choices. 153

5.5.1          Connecting Remote Femtocells. 153

5.5.2          Integrating Femto Network with Macro Network. 154

5.5.3          Functional Split between the FAP and the FGW... 157

5.6         Other Important Femto Solution Aspects. 158

5.6.1          End-to-end Quality of Service. 159

5.6.2          Local Access (data and voice). 160

5.6.3          femtozone Services. 162

5.6.4          Mobility. 163

5.6.5          Femtocell Location. 165

5.6.6          Enterprise and Open Spaces. 166

5.7         UMTS Femtos. 168

5.7.1          Iuh protocol stacks. 168

5.8         CDMA.. 170

5.9         WiMAX. 172

5.10      GSM... 173

5.11      LTE. 174

5.12      Conclusions. 175

6         Femtocell Management. 177

6.1         Introduction. 177

6.2         Femtocell FCAPS Requirements. 178

6.2.1          Fault and Event Management. 179

6.2.2          Configuration Management. 179

6.2.3          Accounting and Administration Management. 180

6.2.4          Performance Management. 180

6.2.5          Security Management. 180

6.3         Broadband Forum Auto-Configuration Architecture and Framework. 180

6.4         Auto-Configuration Data Organisation. 181

6.4.1          Data Hierarchy. 182

6.4.2          Profiles. 183

6.5         CPE WAN Management Protocol Overview.. 184

6.5.1          Protocol Stack and Operation. 184

6.6         FAP Service Data Model 186

6.6.1          Control Object Group. 187

6.6.2          Configuration Object Group. 188

6.6.3          Monitoring Object Group. 189

6.6.4          Management Object Group. 189

6.7         DOCSIS OSS Architecture and Framework. 190

6.8         Conclusions. 194

7         Femtocell Security. 195

7.1         Why Is Security Important?. 195

7.1.1          Viewpoint: Continuity. 195

7.1.2          Viewpoint: (Contained) Change. 195

7.2         The Threat Model 196

7.2.1          Threats from "outsiders" – 3rd parties. 197

7.2.2          Threats from "insiders" - device owners. 198

7.3         Countering the Threats. 199

7.3.1          Radio Link Protection. 199

7.3.2          Protecting the (IP) Backhaul 200

7.3.3          Device Integrity - Tamper Resistance. 206

7.4         Conclusions. 209

8         Femtocell Standards and Industry Groups. 210

8.1         The importance of standards. 210

8.2         GSM... 211

8.3         WCDMA.. 211

8.3.1          TSG RAN WG2 – Radio layer 2 and Radio Layer 3 RR. 212

8.3.2          TSG RAN WG3 architecture. 212

8.3.3          TSG RAN WG4 Radio performance and protocol aspects RF parameters and BS conformance   213

8.3.4          TSG SA WG1 - Services. 213

8.3.5          TSG SA WG3 – Security. 213

8.3.6          TSG SA WG5 Telecom Management. 214

8.3.7          Summary of WCDMA Standards. 214

8.4         TD-SCDMA.. 216

8.5         LTE. 216

8.6         CDMA.. 216

8.7         Mobile WiMAX. 218

8.8         Femto Forum.. 220

8.9         Broadband Forum.. 221

8.10      GSMA.. 221

8.11      Conclusions. 221

9         Femtocell Regulation. 223

9.1         Introduction. 223

9.2         Regulatory Benefits of Femtocells. 223

9.3         Spectrum Efficiency. 223

9.4         Economic Efficiency. 224

9.5         Enabling Competition. 224

9.6         Broadening access to services. 224

9.7         Enabling innovation. 225

9.8         Environmental goals. 225

9.9         Spectrum Licensing issues. 226

9.10      Location. 227

9.11      Authentication. 227

9.12      Emergency Calls. 227

9.13      Lawful Interception and Local IP Access. 228

9.14      Backhaul Challenges. 229

9.15      Mobile Termination Rates. 230

9.16      Competition Concerns. 230

9.17      Examples of femtocell regulations. 230

9.18      Conclusions. 232

10       Femtocell Implementation Considerations. 233

10.1      Introduction. 233

10.2      Signal Processing. 233

10.3      Location. 233

10.4      Frequency and Timing Control 234

10.5      Protocol Implementation. 235

10.6      RF Implementation. 236

10.7      System Design and Cost. 236

10.8      Mobile Device Challenges and Opportunities. 239

10.9      Conclusions. 240

11       Business and Service Options for Femtocells. 241

11.1      Introduction. 241

11.2      Ways of being a Femtocell Operator. 241

11.3      Femtocells for Fixed Line Operators. 244

11.4      Types of Femtocell Service. 246

11.5      Service Examples. 247

11.5.1        Femtozone Services. 247

11.5.2        Connected Home Services. 250

11.6      Service Enablers. 252

11.6.1        Service Implementation. 253

11.7      Stages of Femtocell Service Introduction. 254

11.7.1        Stage 1 – Supporting Fixed Mobile Substitution. 254

11.7.2        Stage 2 – Prompting Mobile Data Uptake. 254

11.7.3        Stage 3 – Bringing the Mobile Phone into the Connected Home Concept. 254

11.7.4        Stage 4 – Taking the Connected Home into the Wider World. 254

11.8      Conclusions. 255

12       Summary: The Status and Future of Femtocells. 256

12.1      Summary. 256

12.2      Potential Future Femtocell Landscape. 258

12.2.1        Growth of femtocell adoption. 258

12.2.2        Femtocells in Homes and Offices. 259

12.2.3        Femtocells in Developing and Rural Markets. 259

12.2.4        Femtocells Outdoors. 259

12.2.5        Femtocell-only Operators. 259

12.2.6        Femtos Enabling Next-generation Mobile Networks. 260

12.2.7        When is a femtocell not a femtocell?. 262

12.3      Concluding Remarks. 263

13       References. 264

14       Further Reading. 272

15       Index. 273