NEC Turns Up Femtocells

Two announcements today from NEC in the femto market.

First, the company announced it received an order from Softbank in Japan for it’s IMS-based femtocell system. The system does require an IMS infrastructure, which can be troublesome for many existing mobile operators. Softbank’s goal is to be commercial in January 2009.

I believe this is the first commercial announcement/award for 3G femtocells.

Second, NEC made a strategic investment in Kineto Wireless, it’s supplier for RAN gateway-based femtocell solutions. The undisclosed investment was NEC’s first in the femtocell market.

With a win in the IMS approach and an investment in the RAN gateway approach, it appears that NEC is well positioned in the femtocell market moving forward.

Four Out of Five Agree: UMA for Femtocells

Before MWC, I wrote about the incredible amount of UMA-based femtocell news, calling it a ‘femto frenzy’ of activity.

Within the world of femtocells, there are a chosen few committed to the existing 3GPP UMA/GAN standard. All of the other systems/solutions are proprietary. The “UMA-enabled Femtocell” world consists of many key players:

- Solution provider NEC
- Solution provider Motorola
- Femtocell provider Ubiquisys
- Femtocell provider Motorola
- Femtocell provider Netgear

So, let’s count the number of announced operator femtocell trials and see where UMA is involved:

1. During MWC, pan-European mobile operator O2 announced they were conducting a femtocell trial with NEC.

2. Also during MWC, Scandinavian provider Telia announced a femtocell trial based with Motorola.

3. Then just this week, an article from Fierce Wireless editor Brian Dolan suggests that T-Mobile International will be trialing Ubiquisys femtocells with NEC.

4. Softbank in Japan has announced trials with nearly every supplier on the market, including Ubiquisys, NEC and Motorola.

5. The only other announced trial I’m aware of is Vodafone Group’s announcement to trial Alcatel/Lucent and Huawei, clearly not a UMA-based trial.

Unless I’m mistaken (which I’m sure you’ll to tell me if I am):

Four out of five femtocell trials include a UMA-based system.

This reminds me of the old Trident gum ad where “four out of five dentists agree…”

I attribute this to a couple of reasons:

- It works. Novel but true. UMA has been commercially deployed for more than two years.

- Operators actually want a standard interface. As much as Alcatel/Lucent, Huawei, and even Nokia/Siemens are trying to push their own proprietary approaches, the operators have had enough. They want an open, public standard interface for femtocells.

- UMA does more than one thing. After deploying a femtocell service, a mobile operator may want to add a fixed line VoIP service (like T-Mobile US). The same UMA infrastructure supports that, or dual-mode phones, or softmobiles.

Next, let's see if we can get to 9 out of ten...

[UPDATE MARCH 20] Good posted on ThinkFemto about a similar topic. I have a bit more detail. For some reason, ThinkFemto decided to throw in a bunch of picocell wins that ip.Access got, but they aren't femtocells.

UMA-based Femtos on Trial

One of the big news items of this year’s Mobile World Congress (MWC) was femtocells. As reported here, there was a ‘femto frenzy’ building in the market. Then on Monday, two UMA-based femtocell trial announcements hit the wire.

The first was O2, announcing they are trialing a femtocell system from NEC. This was on the heels of NEC announcing their femtocell solution.

Second Telia announced plans for a femtocell trial to complement their Home Free dual-mode handset service. I recommend clicking through on the link, it’s an excellent way to work on your Swedish. Telia has been very aggressive in rolling out Home Free across Telia properties and has used a UMA-based solution from Motorola for some time.

I think UMA is starting to have an effect on the femtocell market. Clearly operators see the advantages (fastest time to market, fastest time to standards, robust, proven, investment protection for new FMC applications) and I’m certain there will be more UMA-based femtocell announcements to come.

Femto's frenzy

In the drive up to Mobile World Congress, there has been ‘femto frenzy’ of press releases. A large chunk of the news has been from UMA-based femtocell players.

Sensing an opportunity to play a significant roll in the market, UMA-based femtocell manufacturers have been aggressive about making the case for UMA as the ‘most viable’ path to standardization of a RAN Gateway/ ‘Iu-over-IP’ architecture.

There are rumors that there may be some operator announcements at MWC regarding UMA-based femtocell trial activities. We’ll be sure to update the site as the news comes in.

1. NEC and Kineto propose approach for rapid femtocell standardization
2. Motorola announces a family of femtocell solutions
3. NEC and NETGEAR team to develop an integrated 3G access point for femtocell solution
4. Kineto ready to support commercial femtocell rollouts
5. NETGEAR and Kineto to showcase 3G femto home access solution at MWC
6. NEC announces trial of femtocell solution with mobile operators
7. Kineto and Ubiquisys announce successful interoperability testing between Zonegate and UNC
8. Femto Forum steps up drive for harmonized network integration

As one insider told me that only "...relentless evidence of practical deployments and practical challenges overcome" will convince the market that UMA is the most viable technology for a femtocell /network integration standard. This looks like the start of some relentless-ness.

The Femtocell Conference

Avren, a boutique conference firm, hit a home run July 3-5 with the industry’s first femtocell event. Adding to the allure was the inaugural meeting of the new Femto Forum which resulted in a staggering 240 attendees all crammed into a hotel ball room at Heathrow to hear about femtocells.

I wanted to offer a couple of thoughts that we picked up from the event:

- The operators have consolidated around a 'RAN gateway' approach.

Early on there was talk of potentially using Iu-b or even SIP, but those have been largely dismissed by the operators. All major operators and vendors (NSN, Alcalu, Motorola, NEC, Ericsson) have proposed a RAN gateway (like a UNC) solution that provides an Iu connection to the mobile core.

This approach is low impact to the core and ensures full service transparency (all GSM/3G services are delivered over the femtocell), the same reasons why UMA defined a RAN gateway approach 2+ years ago. What's interesting is that rather than rallying around UMA, vendors are each defining their own proprietary approaches. Motorola and NEC are following the UMA path.

- Operators are *insisting* on an open interface

This makes sense. They want a robust, competitive market for femtocells, with many suppliers delivering products that meet a single, standardized interface. This achieves the economies of scale for femto manufacturers to drive costs down. Of course, UMA is already an open/published specification. NSN took the unusual step of stating they will publish their ‘vendor specific’ protocol for other femto vendors to build too. I’m sure the other vendors (ip.Access, Ericsson, Alcalu, NEC, Motorola, ...) can’t wait to build a femto that conforms to the Nokia/Siemens specification (or vice versa).

- The hype is high, but reality is starting to set in.

It was clear from the tone of the operators that femtocells are an exciting opportunity. But all realize there is a LOT of work to be done before the promise/hype meets up with the shelves of consumer electronics stores.

- A word on UMA

In all of this, UMA continues to be the only published, industry recognized standard for femtocell backhaul. The minor work to extend the current UMA specification to support Iu was kicked off in Oct 06 at the 3GPP.

Through its work with Dual-Mode Handsets, UMA already has the ability to integrate millions of devices into the mobile core, has the access control mechanisms to support consumer grade products, and a robust handover procedure. These capabilities are yet to be defined by the vendors scrambling to come up with their own RAN gateway protocols. UMA is the standardized RAN gateway approach.

Two other things UMA has going for it versus these ‘vendor specific’ approaches. One is that UMA supports dual-mode handset services as well as femtocells. While an operator may not be interested in a DMH service today, the future protection offered by a UMA infrastructure, with no price premium (UNCs are already deployed in volume around the world for DMH), is very compelling.

Second is that UMA supports 2G femtocells as well as 3G femtocells. If an operator is going to deploy a ‘combo’ AP, or is interested in 2G femtos, UMA is the only choice.

All in all, UMA is really proving why it is known as ‘GAN’, it is a generic access network technology, easily adaptable to new applications.