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Delivering Innovative New Wireless
         Products & Services
                    Manish Singh
                    Vice President
               Product Line Management
www.ccpu.com                             Confidential and Proprietary
At a Glance

                                           Over 150 Customers Worldwide

                Protocols



                  LTE
                  DPI
                Femtocell


  ATCA                      Professional
Platforms                     Services



        “Smarter, Faster, Cheaper” Mobile Broadband
 www.ccpu.com                                              Confidential and Proprietary   2
LTE’s Momentum

       75+ Operators

       • Committed LTE plan
       • Trials & Rollouts

       1st LTE Commercial Network

       • Launched in 2009
       • TeliaSonera in Sweden & Norway

       72 Million LTE Connections by 2013

       • 2010 more commercial deployments
       • Verizon, NTT DoCoMo, China Telecom
                                              Source: Infonetics Research, 2009




www.ccpu.com                                        Confidential and Proprietary   3
Challenges




    Capacity                                          Mind The Gap
    • Traffic doubling every 12 months                • Flat rate pricing
    • LTE spectral efficiency gain = 4X               • More for less

Source: Morgan Stanley, Mobile Internet Report 2009                    Source: Light Reading, 2009

www.ccpu.com                                                           Confidential and Proprietary   4
Options




Increase Revenue                   Reduce Traffic
• $X / MB                          • Walled Garden
• Less for More                    • Traffic Blocking

                  But, There Is No Going Back…
www.ccpu.com                                            Confidential and Proprietary   5
Alternative



MME / Serving GW           MME / Serving GW            Capacity
      S1                      S1



                   X2


eNodeB                          eNodeB




                                              Cost
                 eNodeB



                          Revolutionary Network Architecture
  www.ccpu.com                                             Confidential and Proprietary   6
Disruption


                                                               Core
MME / Serving GW          MME / Serving GW
                                              RAN-Aware         Internet             Video
                                             Traffic Shaping   Offloading         Transcoding
      S1                     S1



                   X2


eNodeB                         eNodeB

                                                               Access

                                              Small Cells       TD-LTE         WiFi Offloading
                 eNodeB




  www.ccpu.com                                                              Confidential and Proprietary   7
Network Mutation
                      Macro Topology                          Hierarchical Cell Structure




                      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                                                        Confidential and Proprietary   8
DPI Evolution

     Pre-DPI Torrent                         Defensive                                  Monetize
…unregulated, unsustainable              …stop the data flood                       …revenue and QoE




               Bulk shaping, typically on Gi interface               Putting the customer in control
               Necessary step to avoid meltdown, but not     Charging & care & policy vendors? Internet offload ?
                            always popular                            Improved QoE…create revenue


               2007                2008                    2009               2010                      2011

     www.ccpu.com                                                                          Confidential and Proprietary   9
DPI = Control

                   Video Conference

                   Operator VoIP

                   Gaming

                   Video on Demand

                   Email

                   Business Class VPN

                   Browsing

                    P2P




www.ccpu.com      Confidential and Proprietary   10
Drivers
    Demographics              Devices                   Demand

  Internet Generation   Mobile Internet Devices   Internet Apps & Content




www.ccpu.com                                                Confidential and Proprietary   11
Applications



                        Context




                 Presence


                              Location




www.ccpu.com                       Confidential and Proprietary   12
And More to Come…

 Smartphones, Netbooks, Notebooks…




   Smartphones                 Netbooks                     Notebooks




 Cameras, eBooks, Med Devices, Gaming, Navigation…



                                            Personal
         IP Cameras   eBooks              Medical Devices     Gaming Consoles       Navigation Systems



www.ccpu.com                                                                Confidential and Proprietary   13
50B Connected Devices
                                      Connected Devices
                       12                                           M2M Connectivity
                       10                                             Today, predominantly WiFi

                                                                    Consumer Opportunity
 Relative Comparison




                       8


                       6
                                                                      Social networking
                                                                      Healthcare automation
                       4


                       2
                                                                    Enterprise Opportunity
                                                                      Smart meters, tracking...
                       0

                                                                    Challenges
                               2009             2015
                                                Year        2020


                                                                      Capacity
                                                                      Coverage
                            Consumer Electronics
                                                                      Cost
                            Traditional Mobile Devices

Sources: Various analyst reports, Continuous Computing estimates

www.ccpu.com                                                                       Confidential and Proprietary   14
New Opportunities

      Retailers   Manufacturers    Today’s Business Chain
                                     Consumer  Retailer  Manufacturer
                                     Mostly, pay one-time

                                   Embedding LTE in consumer devices
                                     New entrant: Operator
                                     Recurring business model opportunity
                                     Netbooks already setting the trend
                                     Pay usage-based, application-based

                                   Addressing the cost challenge
      Operators    Consumers         Operator subsidizes devices, OR
                                     Mfgr subsidizes & shares revenue
  Consumer Device Ecosystem

www.ccpu.com                                               Confidential and Proprietary   15
Infrastructure

          Coverage       • Both Indoor & Outdoor



           Capacity      • Reliable Transport



               Control   • Traffic Management, QoS, QoE



                Cost     • Lower Cost / Bit


www.ccpu.com                                       Confidential and Proprietary   16
“Smarter, Faster, Cheaper” Mobile Broadband




                                       Femtocells =
                                        Cheapest
                                         Bit Pipe




         LTE = Fastest Bit Pipe                             DPI = Smartest Bit Pipe

www.ccpu.com
                    LTE = Long Term Evolution,   DPI = Deep Packet Inspection   Confidential and Proprietary   17
LTE Reference Design
                          MicroTCA Reference Design

                          Trillium LTE Femtocell Software
                                3GPP March 2009
                                LTE Uu
                                FDD & TDD both supported
                                S1 & X2 Network interfaces

                          picoChip PC7608
                               Software defined LTE PHY
                               Frequency, bandwidth options
                               2 x 2 MIMO operation

                          Cavium OCTEON
                              Multi-core MIPS64 Processor
                              L2 – L7 software execution

                          Performance measurements available
www.ccpu.com                                   Confidential and Proprietary   18
Balance

         Network           Device
                                                Act Now!



                                                      Wait…


               Femtocell = LTE’s Biggest Opportunity
www.ccpu.com                                     Confidential and Proprietary   19
Signaling Load


                                                             MME

                         IPsec
               HeNodeB
                                 Security Gateway

                                                           Serving GW




The MME MUST Scale to Handle a HIGH Number of SCTP Connections


                                      Fast Path SCTP       Highly
PP50
                         +                             =   Scalable
                                                           MME
www.ccpu.com                                                 Confidential and Proprietary   20
Metered vs. Flat Rate Pricing
   Metered: $X / MB                    Flat Rate: $X / Month

   Consumer’s Viewpoint                Consumer’s Viewpoint
          What’s a Megabyte?                 Voice = Minutes
          I want to download songs,          Data = Months
           emails, web pages, etc.            In control
          Lack of control                    Get my songs, emails, web, etc.
          Too complex
                                        Result:
   Result:


                              Simplicity Is Key
www.ccpu.com                                                  Confidential and Proprietary   21
Bandwidth-Based Pricing
 Fast, Faster, Fastest                     $X / Mbps

Pros                                       Cons
 Consumer’s viewpoint                      “Guaranteed” data rates, QoE
        I’m in control                        Dead spots?
        Easy to understand                    Coverage gaps?

 LTE – the right opportunity!  Bit Pipe!

 Leverage context                          Revenue / Traffic decoupling
        Real-time service tier upgrades       20% users taking 80% capacity


                     Tiered SLAs, Tiered Pricing Model
www.ccpu.com                                                  Confidential and Proprietary   22
Device-Based Pricing

                      Traffic                $X / month / device
               High
                      Volume
                                             Leverage context

                                             New growth engine
    Low                             High

                                Mobility
                                 Value       Recurring revenues

                                             Easy to understand
               Low




                                             In control

                        Usage-Based, Tied to Device
www.ccpu.com                                               Confidential and Proprietary   23
Summary
   50B Connected Devices
         M2M, Data, Video, Voice…

   Solid Infrastructure Required
                                               1st
      Coverage = Macro
                                         LTE Femtocell
      Capacity = Femto
      Control = DPI
                                       Reference Solution
                                            Launched
   Femto is LTE’s BIGGEST opportunity    at MWC 2010
         Networks will mutate
         Lower cost / bit
                                           14 LTE
                                         Design Wins!
   Establish your beachhead NOW!
www.ccpu.com                                  Confidential and Proprietary   24
Questions & Comments
                           Manish Singh
               Vice President, Product Line Management

                          www.ccpu.com
www.ccpu.com                                       Confidential and Proprietary

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LTE World Summit 2010 Amsterdam

  • 1. Delivering Innovative New Wireless Products & Services Manish Singh Vice President Product Line Management www.ccpu.com Confidential and Proprietary
  • 2. At a Glance Over 150 Customers Worldwide Protocols LTE DPI Femtocell ATCA Professional Platforms Services “Smarter, Faster, Cheaper” Mobile Broadband www.ccpu.com Confidential and Proprietary 2
  • 3. LTE’s Momentum 75+ Operators • Committed LTE plan • Trials & Rollouts 1st LTE Commercial Network • Launched in 2009 • TeliaSonera in Sweden & Norway 72 Million LTE Connections by 2013 • 2010 more commercial deployments • Verizon, NTT DoCoMo, China Telecom Source: Infonetics Research, 2009 www.ccpu.com Confidential and Proprietary 3
  • 4. Challenges Capacity Mind The Gap • Traffic doubling every 12 months • Flat rate pricing • LTE spectral efficiency gain = 4X • More for less Source: Morgan Stanley, Mobile Internet Report 2009 Source: Light Reading, 2009 www.ccpu.com Confidential and Proprietary 4
  • 5. Options Increase Revenue Reduce Traffic • $X / MB • Walled Garden • Less for More • Traffic Blocking But, There Is No Going Back… www.ccpu.com Confidential and Proprietary 5
  • 6. Alternative MME / Serving GW MME / Serving GW Capacity S1 S1 X2 eNodeB eNodeB Cost eNodeB Revolutionary Network Architecture www.ccpu.com Confidential and Proprietary 6
  • 7. Disruption Core MME / Serving GW MME / Serving GW RAN-Aware Internet Video Traffic Shaping Offloading Transcoding S1 S1 X2 eNodeB eNodeB Access Small Cells TD-LTE WiFi Offloading eNodeB www.ccpu.com Confidential and Proprietary 7
  • 8. Network Mutation Macro Topology Hierarchical Cell Structure 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 Confidential and Proprietary 8
  • 9. DPI Evolution Pre-DPI Torrent Defensive Monetize …unregulated, unsustainable …stop the data flood …revenue and QoE Bulk shaping, typically on Gi interface Putting the customer in control Necessary step to avoid meltdown, but not Charging & care & policy vendors? Internet offload ? always popular Improved QoE…create revenue 2007 2008 2009 2010 2011 www.ccpu.com Confidential and Proprietary 9
  • 10. DPI = Control Video Conference Operator VoIP Gaming Video on Demand Email Business Class VPN Browsing P2P www.ccpu.com Confidential and Proprietary 10
  • 11. Drivers Demographics Devices Demand Internet Generation Mobile Internet Devices Internet Apps & Content www.ccpu.com Confidential and Proprietary 11
  • 12. Applications Context Presence Location www.ccpu.com Confidential and Proprietary 12
  • 13. And More to Come…  Smartphones, Netbooks, Notebooks… Smartphones Netbooks Notebooks  Cameras, eBooks, Med Devices, Gaming, Navigation… Personal IP Cameras eBooks Medical Devices Gaming Consoles Navigation Systems www.ccpu.com Confidential and Proprietary 13
  • 14. 50B Connected Devices Connected Devices 12  M2M Connectivity 10  Today, predominantly WiFi  Consumer Opportunity Relative Comparison 8 6  Social networking  Healthcare automation 4 2  Enterprise Opportunity  Smart meters, tracking... 0  Challenges 2009 2015 Year 2020  Capacity  Coverage Consumer Electronics  Cost Traditional Mobile Devices Sources: Various analyst reports, Continuous Computing estimates www.ccpu.com Confidential and Proprietary 14
  • 15. New Opportunities Retailers Manufacturers  Today’s Business Chain  Consumer  Retailer  Manufacturer  Mostly, pay one-time  Embedding LTE in consumer devices  New entrant: Operator  Recurring business model opportunity  Netbooks already setting the trend  Pay usage-based, application-based  Addressing the cost challenge Operators Consumers  Operator subsidizes devices, OR  Mfgr subsidizes & shares revenue Consumer Device Ecosystem www.ccpu.com Confidential and Proprietary 15
  • 16. Infrastructure Coverage • Both Indoor & Outdoor Capacity • Reliable Transport Control • Traffic Management, QoS, QoE Cost • Lower Cost / Bit www.ccpu.com Confidential and Proprietary 16
  • 17. “Smarter, Faster, Cheaper” Mobile Broadband Femtocells = Cheapest Bit Pipe LTE = Fastest Bit Pipe DPI = Smartest Bit Pipe www.ccpu.com LTE = Long Term Evolution, DPI = Deep Packet Inspection Confidential and Proprietary 17
  • 18. LTE Reference Design  MicroTCA Reference Design  Trillium LTE Femtocell Software  3GPP March 2009  LTE Uu  FDD & TDD both supported  S1 & X2 Network interfaces  picoChip PC7608  Software defined LTE PHY  Frequency, bandwidth options  2 x 2 MIMO operation  Cavium OCTEON  Multi-core MIPS64 Processor  L2 – L7 software execution  Performance measurements available www.ccpu.com Confidential and Proprietary 18
  • 19. Balance Network Device Act Now! Wait… Femtocell = LTE’s Biggest Opportunity www.ccpu.com Confidential and Proprietary 19
  • 20. Signaling Load MME IPsec HeNodeB Security Gateway Serving GW The MME MUST Scale to Handle a HIGH Number of SCTP Connections Fast Path SCTP Highly PP50 + = Scalable MME www.ccpu.com Confidential and Proprietary 20
  • 21. Metered vs. Flat Rate Pricing  Metered: $X / MB  Flat Rate: $X / Month  Consumer’s Viewpoint  Consumer’s Viewpoint  What’s a Megabyte?  Voice = Minutes  I want to download songs,  Data = Months emails, web pages, etc.  In control  Lack of control  Get my songs, emails, web, etc.  Too complex  Result:  Result: Simplicity Is Key www.ccpu.com Confidential and Proprietary 21
  • 22. Bandwidth-Based Pricing  Fast, Faster, Fastest  $X / Mbps Pros Cons  Consumer’s viewpoint  “Guaranteed” data rates, QoE  I’m in control  Dead spots?  Easy to understand  Coverage gaps?  LTE – the right opportunity!  Bit Pipe!  Leverage context  Revenue / Traffic decoupling  Real-time service tier upgrades  20% users taking 80% capacity Tiered SLAs, Tiered Pricing Model www.ccpu.com Confidential and Proprietary 22
  • 23. Device-Based Pricing Traffic  $X / month / device High Volume  Leverage context  New growth engine Low High Mobility Value  Recurring revenues  Easy to understand Low  In control Usage-Based, Tied to Device www.ccpu.com Confidential and Proprietary 23
  • 24. Summary  50B Connected Devices  M2M, Data, Video, Voice…  Solid Infrastructure Required 1st  Coverage = Macro LTE Femtocell  Capacity = Femto  Control = DPI Reference Solution Launched  Femto is LTE’s BIGGEST opportunity at MWC 2010  Networks will mutate  Lower cost / bit 14 LTE Design Wins!  Establish your beachhead NOW! www.ccpu.com Confidential and Proprietary 24
  • 25. Questions & Comments Manish Singh Vice President, Product Line Management www.ccpu.com www.ccpu.com Confidential and Proprietary