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Femtocell Equipment Vendor Matrix

(Excerpt of Vendor Matri x) Aditya Kaul
Practice Director, Mobile Networks


Ubiquisys Vendor Matrix Standing
Ubiquisys is ranked the #1 vendor in the femtocell access point vendor matrix. This is mainly due to its
unparalleled efforts in innovation. Ubiquisys is the first vendor to have successfully crossed the $100
threshold for femto ASP. Ubiquisys is also the first vendor in the marketplace to have launched a metro
femtocell solution, which has been developed in conjunction with Public Wireless. While Ubiquisys
is much smaller in size than its rivals, such as Alcatel-Lucent and Huawei, it has led the way in focusing
on the femtocell software stack. Ubiquisys emphasizes the value the intelligence and smartness of the
software, and facilitates the manufacture of femtocells by OEMs and ODMs for different vertical
segments, including consumer, rural, metro, enterprise, and small business. Ubiquisys is also the sole
supplier to SoftBank in Japan, which is one of the first operators to have given away free femtocells,
due to the cost depreciation. From the very beginning Ubiquisys has chosen to stay away from being an
end-to-end system integrator like some of its closest competitors. This strategy has reaped dividends
allowing it to better focus its efforts on being an innovator in the femto marketplace.




Company Innovation Implementation
1 Ubiquisys 83 84
2 Alcatel-Lucent 69 87
3
Huawei Technologies Co
Ltd
63 88
4 Cisco Systems 65 85
5 ip.access Ltd 71 77
6 Airvana 70 77
7
AirWalk Communications
Inc
61 70
8 Argela Technologies 49 72
9 Samsung 45 74
1
0
Motorola Inc 49 64




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1.1 Ubiquisys Company Overview
Ubiquisys Ltd, based in Swindon, England, has been a key player in the femtocell
market. The company, formed in 2004, is recognized as one of the pioneers in the
femtocell space. It is also one of the founding members of the Femto Forum.
Moreover, Ubiquisys has received funding from Accel Partners, Advent Venture
Partners, Atlas Venture, Google, T-Mobile Venture Fund, 5 Continents Consulting
Group, and Yasuda Enterprise Development Co.
Ubiquisys provides Femto Engine software, which is a set of applications that sit on
top of the basic L1 modem. Some of the key features include adaptive radio resource
management (RRM); autonomous decision-making capabilities for offload, media
sharing, phone interaction, etc.; and a femtocell self-organizing network (SON).
Additionally, Ubiquisys provides hardware designs to device manufacturers to fast-
track the production of new femtocell variants that run on its Femto Engine software.
The first Ubiquisys femtocell to be commercially launched by operators, in January
2009, was the G2, a four-user residential femtocell. Ubiquisys has an upgraded
version known as the G3 that features eight calls, 14.4/5.7 Mbps HSPA, and an
energy consumption of less than 5W at a wholesale price of less than $100. In terms
of the access point-gateway interface, Ubiquisys supports Iuh, IMS/SIP, and GAN
architectures. Femto Engine-powered femtocells are available in a range of hardware
configurations for enterprise, enterprise grid, indoor open space, and rural
applications.
Operators that have commercially deployed Ubiquisys femtocells include SFR in
France and SoftBank Mobile in Japan. In May 2010, SoftBank began offering free
femtocells to all of its residential, business, and retail customers.
Also of note, Ubiquisys is one of the first vendors to provide a metro femtocell solution
using its Femto Engine software. The Colo Node is an HSPA solution from Public
Wireless, a neutral host provider that plans to lease Colo Node solutions, which are
installed on lamp posts and utility poles, to operators across the United States. This
solution consists of four modules powered by Ubiquisys Femto Engine, each
supporting up to sixteen users, making it a sixty-four-user solution with a coverage
radius of 2 miles.
Ubiquisys sources its baseband modems from Percello and picoChip. Having multiple
baseband suppliers ensures that the leading component is selected on the basis of
performance, price, and power consumption.



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Secti on 2. METHODOLOGY
ABI Research evaluates vendors on the basis of innovation and implementation by
selecting multiple criteria related to product/company characteristics that serve as
proxies for the vendors' performance in these two areas. Upon evaluation, vendors
are assigned numerical scores that are aggregated and analyzed to provide overall
rankings of each vendor on the Innovation and Implementation axes.
The Femtocell Access Point Vendor Matrix compares femto access point vendors and
ranks them based on various criteria linked to Innovation and Implementation. The
criteria specific to the evaluation of femtocells include:
2.1 Implementation
End-to-End Solution Capability: measures ability of vendor to provide end-to-end
solutions from chipset access point through to system integration.
RFP, Trial, and Rollout Activity: measures commercial activity of vendor including
participation in RFPs, trials, and commercial rollouts, with larger weight for live
commercial rollouts.
Ability to Scale and Commoditize Quickly: measures ability to scale operations to
match upcoming spikes in demand for femto access points.
Carrier Relationships: measures existing relationships with carriers including
Tier 1, 2 and 3 carriers with larger weightage for Tier 1 carriers.
Overall Financial and Organizational Health: measures financial health of the
vendor.
Silicon Strategy/Partnerships: measures the silicon strategy, silicon partnerships,
or internal ability of a vendor to develop silicon.
Software Stack Capabilities: measures the software stack strategy, software stack
partnerships, or internal ability of a vendor to develop software stack.
2.2 Innovation
Cost: measures innovation and effort in reducing the cost of the femto access point.
Interference Mitigation Techniques: measures innovation and techniques involved
in reducing interference from femtocells.
Standards-Compliant Network Interface: measures efforts to provide a standards-
compliant femtocell, including participation and submission to the standards
themselves.
Gateway/Handset IOT: measures effort of vendor in terms of handset and
gateway IOT.
L2/L3 Software Stack: measures innovation on the L2/L3 software stack.
Hand In/Out Support: measures effort and innovation to provide hand-in/hand-out
support on femtocells.
Module Support: measures the ability of a vendor to provide modular versions of
its femtocell that can integrate into third-party platforms.
Femtozone Service/Application Framework Support: measures innovation and
development of a femtozone services and application framework.
Support for Multiple Form Factors: measures innovation and capability in providing
multiple form factors (DSL/Wi-Fi integrated, set-top box integrated femto).
Enterprise Femto Capability: measures innovation and capabilities for



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enterprise/business grade femtocells.
Metro Femto Capability: measures innovation and capabilities for metro grade
femtocells.
2.3 Rankings
After individual scores are established for Innovation and Implementation using the
above criteria, an overall company score is established using the Root Mean Square
(RMS) method:

The resulting overall scores are then ranked and used for percentile comparisons.
The RMS method, in comparison with a straight summation or average of individual
innovation and implementation values, rewards companies for standout performance.
For example, using this method a company with an innovation score of 9 and an
implementation score of 1 would score considerably higher than a company with a
score of 5 in both areas, despite the mean score being the same. ABI Research
believes this is appropriate as the goal of these matrices is to highlight those
companies that stand out from the others.
















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Secti on 3. VENDOR MATRI X SUMMARY
Ubiquisys retains its position as the leading femtocell access point vendor for the third
year in a row. While there have been significant operator launches from its closest
competitors such as Alcatel Lucent (Vodafone UK) and Cisco (AT&T), which have
provided the impetus for market in 2010, Ubiquisys has focused on its core
competence as a femtocell specialist. Ubiquisys has transformed itself from a box
vendor to a femto software engine supplier, providing the blueprint necessary for
mass-market sub $100 femtocells. As the driving force behind SoftBank's free
femtocell offering, and having enabled the worlds first metro femtocell from Public
Wireless, Ubiquisys has gained recognition as a leader and innovator in the
marketplace.
Alcatel-Lucent and Huawei are ranked #2 and #3 respectively. Alcatel-Lucent has a
lions share of the Vodafone rollouts across Europe, followed by Huawei, which has
been present in most operator trials but has seen moderate success so far. Alcatel-
Lucent is the one vendor that could threaten Ubiquisys's position as the leading
femtocell vendor in the coming year as it expands its reach as an end-to-end supplier,
with the size and scale that operators like to see. Huawei is still seen as a force to
contend with, especially in the Chinese and European markets, due to its capability as
an end-to-end supplier. Cisco is just behind Huawei at #4, losing out in terms of
implementation because of its reliance on AT&T as the sole operator, while Huawei
has a wider operator reach. While ip.access is closely tied into Cisco, in this matrix
both are individual vendors in their own right. While ip.access is still seen as an
innovative vendor that has been in the marketplace since the very beginning, it loses
out to Cisco in terms of its scale, carrier outreach, enterprise Wi-Fi, IP, and core
network capabilities.
The two vendors that are worth keeping an eye on are Airvana and AirWalk. Both
vendors are primarily CDMA femtocell suppliers and have ties to Sprint and Verizon,
both of which are planning 3G femtocell rollouts in late 2010-early 2011. Airvana and
AirWalks current positions in the vendor matrix are a reflection of the delayed 3G
femto rollouts from Sprint and Verizon. However, both vendors do rank high on
innovation and outrank Huawei, Alcatel-Lucent, and Cisco in that category.
The middle range of the vendor matrix consists of many of the integrated femtocell
suppliers, most of which are tied to femtocell module vendors such as Airvana or
Ubiquisys. At the same time,- they are femtocell vendors in their own right and have
been measured in terms of their capabilities as femtocell access point suppliers. They
can also be classified as femtocell product integrators due to their expertise in the
broadband or Wi-Fi router space. In this category vendors like Argela and Technicolor
are well positioned because of their focus on enabling a framework or building APIs
for femtozone applications. This could be a key differentiator for integrated femtocell
suppliers.
Most of the vendors in the bottom half of the ranking do not have any significant
ongoing operator engagements, or have not upgraded their femtocell product line in
the last 12-18 months.




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Published September 3, 2010

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