This presentation was delivered at Femtocells Asia 2011 in Singapore.

1. Femtocells Asia Q2 2011
Intelligent Mobile Broadband
April 4, 2011
Todd Mersch, Director Product Line Management
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 1

2. At a Glance
Femtocells = Cheapest Bit Pipes
Over 150 Customers Worldwide
LTE
Femto
DPI
= Fastest Bit Pipe DPI = Smartest Bit Pipe
Visit us in the Exhibit Area
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 2

3. Recent News & Awards
 Juni – 28th 3G Small Cell Customer
 Market leading customer wins
 FlowEngine DPI SW Framework
 DPI SW + Trillium + Ecosystem
 10 RAN Silicon Giants choose Trillium
 Winner:
 Femto Forum Awards
 Winner:
 Informa LTE Awards
 Finalist:
 GSMA Awards
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 3

4. Mobile Broadband: Huge Demand, Huge Challenges
Capacity Mind The Gap
 Traffic doubling every 12 months  More for less
Text
 LTE spectral efficience gain = 4X  Lower cost per bit
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 4

5. Demand – Supply Imbalance
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 5

6. Shannon – Moore Divide
Mind The Gap
Shannon vs. Moore Shannon Channel Capacity
Moore  Reaching Limit with LTE
Moore’s Law still doubling
Divide  Data hungry devices
Shannon MIMO
LTE
LTE-Advanced
 Carrier Aggregation
 Spectrum?
Exponential Problem NEEDS Exponential Solution
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 6

7. Options
Increase Revenue Reduce Traffic
 $X / MB  Walled Garden
 Less for More  Traffic Blocking
But, that’s going backwards…
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 7

8. The Alternative - Intelligent Mobile Broadband
MME / Serving GW MME / Serving GW
Capacity
S1 S1
X2
eNodeB eNodeB
Cost
eNodeB
But Still
Spectrum
Limited
4X 1,000,000x Manage
LTE Spectral FAP Spectrum DPI Limited
Efficiency Reuse Capacity
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 8

9. Disruption
Core
MME / Serving GW MME / Serving GW Adaptive Video
Internet
Traffic Trans-codin
Offloading
Shaping g
S1 S1
X2
eNodeB eNodeB
Access
WiFi
eNodeB Small Cells TD-LTE
Offloading
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 9

10. Network Mutation
Macro Topology Hierarchical Cell Structure
Courtesy AirHop Communications
Coverage Era Capacity Era
1990 2010
“The need for 4G picocells and femtocells to enhance coverage and boost
capacity in hotspots is one of the important principles for Verizon's LTE Network”
-- Verizon Wireless CTO
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 10

11. Shrinkage!
Our Focus: Small Cells
Macrocell
Capacity
Microcell /
Picocell
Greater
Femto
Femtocell
Coverage
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 11

12. Spectrum
 The Spectrum Challenge
 700 MHz 2.6 GHz
 2.6 GHz 2.6 GHz
 Digital Dividend
 900 / 1800 MHz re-farming 2.6 GHz
 Frequency Impacts Network Costs
 Increases with frequency Cell radius ~ 30 – 300m
 TD-LTE = Opportunity 700 MHz
 FDD for Macros
 TDD for Femtos
 Multi-Band Deployment
 2.6GHz for Femtos
 700MHz for Macros
Cell radius ~ 1 – 3km
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 12

13. Mixed Mode in the News
“3, Telia & Telenor acquire both FDD and TDD
Spectrum in Denmark Auction ” – May 2010
Hi3G Access AB 's plan to roll out dual-mode Long Term
Evolution (LTE)/Long Term Evolution Time Division Duplex
(LTE TDD) networks in Sweden and Denmark signals the rise of
a hybrid deployment model using both flavors of the next-
generation mobile technology. – March 2011
“Polish operator, Aero 2 Sp. z o. o. could actually be the first
mobile operator to launch a dual-mode FDD/TDD network
using 2.5GHz TDD spectrum, which is expected to become
operational this year” – March 2011
"With a limited supply of appropriate LTE FDD spectrum, mobile operators
with access to TDD spectrum are driving hybrid LTE FDD/TDD network
development in Europe, Eastern Europe/CIS, and Middle East/ Africa
beginning in 2012,“ – Berge Ayvazian (Heavy Reading)
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 13

14. Multi-Mode Small Cells
Multi-Mode Femtocell Aggregator Core Network
Femtocell
Iu 3G Core
Security
Iuh HNB GW
Gateway
S1
Security HeNB S1
Gateway GW EPC
 Increase 3G and LTE capacity and coverage in single device
 Upgrade path from 3G to LTE
 Support for mixed subscriber base
 Leverage same IP backhaul
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 14

15. Heterogeneous Network Scenario
Capacity
Multi-Mod
e
(LTE- TD Demand-based
LTE –TDD D 2.6GHz Capacity &
LTE - TDD
LTE-TDD Femto / 3G Coverage
Femto
Femto 2.6GHz 2.1Ghz)
2.6GHz
2.6GHz
LTE FDD Networks, 700 MHz
Nationwide
3G / HSPA Networks, 2.1GHz Network
GSM / GPRS / EDGE Networks, 900MHz / 1800MHz
Coverage
Rural Sub-urban Urban Dense Urban
Low Broadband Proliferation High
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 15

16. EPC Scaling Problem
E-UTRAN Architecture
MME / Serving GW MME / Serving GW
HeNodeB HeNodeB HeNodeB
S1 S1
X2
eNodeB eNodeB HeNodeB HeNodeB HeNodeB
HeNodeB HeNodeB HeNodeB
eNodeB
Small cells creating ‘Signaling Deluge’ for EPC
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 16

17. Scaling EPC!
64K Associations!
1M+ SCTP Packets / sec!!
SCTP in the fast path
PP50
+
Death by 1,000 pizza boxes
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 17

18. DPI = Control
Video Conference
Platinum
Operator VoIP
Gaming
Bronze Video on Demand
Gold
Email
Business Class VPN
Silver Browsing
P2P
App- ba Maximum
Tiered
sed Network
SLAs
QoS Monetization
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 18

19. Not All Cells Are Loaded Equally!
Top 5% utilized Average cell
cells heavy on HTTP
P2P Streaming grew
to 27%
Source: Allot Mobile Trends, Global Mobile Broadband Traffic, H2/2009
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 19

20. Adaptive Traffic Shaping
Dense Urban RAN-Aware Traffic Shaping
#1 Radio
- Congestion Aware
Access
- Femto Aware
Network
- Dynamic Network Policy
(RAN)
Signaling Information
Suburban RNC
#2
ATS SGSN GGSN
Platform
Femto
Gateway
Residential
Femtocell #3
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 20

21. Framework
RAN
Tiered SLA
Congestion
Aware
Aware
Application
Femto Aware
Aware
Policy
Enforcement
Point
DPI Key to Real-Time, Line-Rate, Multi-Aware Policy Enforcement
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 21

22. Internet Offload Network Architecture
Offloaded data traffic to PDN
CGF CRF OCS
Internet
Gi
Ga
Gx
Gy
Iub Iu Iu Gi
Node B IOG
RNC SGSN GGSN
Legend
Signaling Non-offloaded data traffic Offloaded data traffic
Offloading
• Bump-in-wire device • Minimize traffic to CN
• DPI application / protocol • Reduce CN OPEX / CAPEX
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 22

23. IOG Anatomy
Control Plane Software
Application
XLR # 1
SGSN
IuPS
Charging Stack Monitoring Stack Gi
Internet
IuPS
Data Plane Software
XLR # 0
Application RNC
Offload
Decision Block
DPI
PP50 COP50 RTM
Classification IP ~ 10 Gbps Line Fail-to-
Rate wire
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 23

24. Summary
 LTE alone will not solve the crunch
 Linear solution for an exponential problem
 Femtocells = Exponential Solution
 Spectrum Efficiency + Spectrum Reuse
Solving the
 Harness heterogeneous networks
 TDD for Femto / FDD for Macro
Mobile
 Multi-mode bolstered business case Broadband
 Must effectively manage signaling load Capacity
Challenge
 Still spectrum limited
 Traffic Management Essential 21 LTE, 28
 Congestion, Femto, SLA, Application Aware Femto, & 21
 DPI holds the key DPI Wins!
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 24

25. Questions & Comments
Todd Mersch
Director, Product Line Management
www.ccpu.com Copyright © 2011 Continuous Computing. All Rights Reserved. | Confidential & Proprietary 25