Among a host of announcements, the leading silicon supplier for this segment, picoChip, was working hard to maintain its headstart as Qualcomm and others gear up to enter the market. It announced no fewer than six new customers, many coming from the Taiwanese ecosystem that is so vital to the mass adoption and price competitiveness of any emerging consumer product.
The new customers are Alpha Networks, Argela, Askey, C&S Micro, Contela and Zyxel, all of which will use the UK firm's PC302 picoXcell system-on-chip for HSPA(+). This is designed to reduce cost and time to market for vendors, and now has over 20 adopters, including Vodafone's femto supplier Alcatel-Lucent, and AT&T's, Cisco/ip.access.
Meanwhile, the femto players are looking ahead to LTE, where there are many indications from operators that tiny cells will play a big part in the strategy. The devices will be used from day one by some carriers - to offload data from the macrocell or to provide indoor coverage in high frequencies like 2.6GHz. They could also add capacity to deployments in low frequencies like 700MHz and even be used as a starting point for greenfield providers, which could then add macro networks later, explained Simon Saunders, chair of the Femto Forum.
Continuous Computing has been eyeing the femto market for several years from its heartlands in protocol stacks, core networking and traffic shaping. At MWC, it worked with picoChip and Cavium Networks to show the first complete LTE femtocell reference design. Available immediately, this includes the LTE modem, RF and packet processors, protocol software, intelligent router functionality and a complete Evolved Packet Core (EPC) simulator.
"The demand for LTE femtocells is unquestionable. We are already seeing operators asking for small cell access points to start testing in the second half of this year. Femtocells represent the key to avoiding the difficulties surrounding the first 3G deployments where roll-outs cost too much, took too long and did not meet user expectations," said Mike Dagenais, CEO of Continuous.
The reference design used a picoChip modem, mezzanine RF card and PHY software; Cavium's Octeon Plus multicore processor; and Continuous' Trillium LTE Layer 2/3 protocols, eNodeB reference application and EPC emulator.
Call it network congestion, capacity crunch or data overload - the complaints aired at the Mobile World Congress in Barcelona this week were all about cellphone network operators trying to find ways of profitably handling an explosion in mobile data traffic.
Management of the data traffic has become a priority for the telecoms industry as mobile internet usage is booming but data revenues for the phone companies grow slowly at best.
Research firm Informa forecasts a 50 per cent rise in mobile data traffic in 2010 on the back of the increasing popularity of devices such as the Apple iPhone and netbooks, but only a 13 percent rise in data revenues.
This has put added pressure on the phone companies to find ways of using fixed line networks including the internet to take some of the strain off the airwaves.
"Offloading is crucial for us," France Telecom -owned Orange's global head of mobile Olaf Swantee told Reuters ahead of the conference.
"In many countries where we have a fixed network we try to offload directly," he said.
The problem is that offloading data from wireless network to local hotspots still costs money, and operators are searching left and right for solutions that will not raise their overall capital spending, industry executives said.
"To address the smartphone challenge they are investing again," said Rajeev Suri, chief executive of joint venture equipment maker Nokia Siemens, who added that it was uncertain whether this spending was additional to or instead of other investment plans.
More certain was Bruce Brda, head of rival Motorola's networks business. "Carriers have been very consistent - they do not increase capex," he told Reuters.
Nevertheless Motorola saw better than expected demand late last year for equipment as some operators strengthened their existing networks to cope with surging data traffic, Brda said.
"In early 2010 I am seeing the same trend. The indication is there is incremental spending."
Equipment vendors such as Ericsson, Nokia Siemens and Alcatel-Lucent were also demonstrating new technology LTE equipment in Barcelona, as a route toward handling the data rush.
Operators are expected to spend billions of euros converting their networks to the Long Term Evolution standard, which will enable fast mobile broadband access for services such as watching movies on mobile phones, although some critics say LTE would prove a stopgap solution if data traffic goes on growing.
"LTE will buy a carrier two to three years of relief, but then it runs out," Brda said.
And analysts say telecom operators' sales in mature markets are not growing fast enough to justify major investments, which may mean an increase in demand instead for other technologies such as Wi-Fi or femtocells.
Femtocells are localized phone network base stations sited in homes and offices where signal strength might otherwise be weak, taking users onto the phone company's network via their own broadband internet connections.
"The biggest problem is that everybody is expecting these huge amounts of data but nobody is willing to pay much extra for it," said Stephen Rayment, chief technology officer of Belair Networks, which provides Wi-Fi services.
"Operators started offering 'all you can eat' data and now that's coming back to bite them," he said.
Speaking at Mobile World Congress Professor Simon Saunders, chairman of the femtoforum - the official non-profit standards' body proclaimed "2010 is the breakthrough year for femtocell".
From a UK perspective he was able to confirm the backing of industry regular Ofcom while T-Mobile, Telefonica/O2, Vodafone and Orange have all signed up as members so far. Furthermore, deployment of femtocell solutions to compete with Sure Signal is now ready and in their hands.
"The technology is there and it is now a matter of timing for the operators," he told me. "I cannot give specific dates, but all UK operators should be looking at a 2010 roll-out."
So far 55 network operators are femtocell forum members around the world, and operator commitments have jumped 50 per in the last three months alone. On top of this 3GPP has formalised femtocell standards, and the body's next generation ('Release 9') will bring support for LTE and enhancements for UMTS. The WiMax Forum is also on board as is the FCC in the US while China and Japan have confirmed their support.
Alcatel-Lucent recently announced the availability of a “small cell” (femtocell) designed to address the needs of enterprise customers. And last month Vodafone renamed its femtocell device to Sure Signal, as well as dramatically reducing its cost from £160 down to £50.
Informa said that the Vodafone relaunch of its femtocell offering is “realising considerable success in the UK, spearheading the entrance of femtocell services in the European market.”
“Vodafone rebranded the femtocell service to make the proposition clearer to end users while differentiating from their competition by eliminating indoor coverage deadspots,” it added.
According to Informa there are currently 12 service commitments, including nine commercial launches and several ongoing trials, while completed trials are now progressing into deployment plans for several mobile operators. This contrasts with eight femtocell service commitments and six commercial launches in November 2009.
During the last three months it cited French mobile operator SFR, Portuguese operator OPTIMUS and Chinese operator China Unicom, all of which have commercially launched femtocell services. Meanwhile it says that both Japan’s KDDI and France’s free have also committed to the technology.
