Femtocells & Femto BTS

I've just read some articles related with this "femto" issue. Also, maybe some of you have heard about this thing ...

Source/Courtesy FemtoForum.org

At least Sprint and Verizon have already offered early "femto" services (cited from dailywireless.org | lightreading.com). But for me, at a first glance, it wasn't quite clear: what benefits are given to the customers? Whether these femto-APs/BTSs could really with-reasonable-benefits replace existing infrastructures? ....

Let's start with some definitions/quotes:

• "Femtocells, or tiny cellular base stations, ..." (lightreading) --> okay, intuitive, it shall be smaller than pico
• "A femtocell is a low-power wireless access point that operates in licensed spectrum to connect standard mobile devices to a mobile operator’s network using residential DSL or cable broadband connections" (FemtoForum) --> several questions such mentioned above begin to confront !
• "The pint-size base stations go into homes or offices to improve indoor cellular coverage and the traffic is backhauled to the mobile core network over users' own broadband connections" (lightreading) --> it isn't new, heh ?
• “Perhaps best of all, the device sends all calls over the subscriber's home broadband connection, usually DSL or cable, so the carrier doesn't have to pay to carry the traffic from the femtocell to its network. "Backhaul" traffic, which runs calls from cellular towers to the wired network, is a major cost for carriers.” (hp community) --> sure, but could they really replace existing outdoor BTSs? No! (disagree? leave a comment please :-D)
• "Femtocells in our homes connected to our DSL or cable modems where we get our Internet access from the local access provider. We all pay the local access provider for the “backhaul” of our WiFi access points, home routers, PCs, etc. Hence we are subsidizing the backhaul of the femtocell for the wireless operator to obtain coverage footprint in our homes. And yet, Sprint is charging $50 for their femtocell (from Samsung) and $15 per month service for unlimited calls from home…" (hp community) --> agree :-D
  

A better argument

• "At an LTE conference in Berlin I spoke to two Motorola network managers. They explained me a femtocell approach that could be suitable for integrated carriers such as Vodafone, which owns one of the biggest DSL providers in Germany: Arcor.

  People could get a very cheap DSL connection from Arcor under the condition that they install a femtocell at home, which is not only for themselves but can be used by every passing Vodafone user on the street. Vodafone would subsidize my fixed line if I help them with their wireless LTE coverage.

  The Motorola people also told me that the most expensive cost unit of a cellphone base station is the roof rent. I guess they would be happy to cut some antennas in exchange for femtocells. It seems plausible to me." (Markus Goebel Comment @gigaom)
  

First forget about LTE, DSL or Cable connections can not reach 150 Mbps right ? cmiiw! For voice services as Verizon does with its femto-offerings, at least the connections shall be able to reserve 100+ kbps for three parallel conversations. How about QoS ? well, it shall be another thread :-D

Could we soon hear Telkomsel-Femto or Indosat-Femto offerings ??? Questionsmark :-D

*Update - From Wikipedia.org*

In telecommunications, a femtocell—originally known as an Access Point Base Station—is a small cellular base station, typically designed for use in residential or small business environments. It connects to the service provider’s network via broadband (such as DSL or cable); current designs typically support 5 to 200 mobile phones in a residential setting. A femtocell allows service providers to extend service coverage indoors, especially where access would otherwise be limited or unavailable. The femtocell incorporates the functionality of a typical base station but extends it to allow a simpler, self contained deployment; an example is a UMTS femtocell containing a Node B, RNC and GSN with Ethernet for backhaul. Although much attention is focussed on UMTS, the concept is applicable to all standards, including GSM, CDMA2000, TD-SCDMA and WiMAX solutions.

For a mobile operator, the attractions of a femtocell are improvements to both coverage and capacity, especially indoors. There may also be opportunity for new services and reduced cost. The cellular operator also benefits from the improved capacity and coverage but also can reduce both capital expenditure and operating expense.

Femtocells are an alternative way to deliver the benefits of Fixed Mobile Convergence. The distinction is that most FMC architectures require a new (dual-mode) handset which works with existing home/enterprise Wi-Fi access points, while a femtocell-based deployment will work with existing handsets but requires installation of a new access point.

Click here for complete femto story at Wikipedia

*Update - OC*

Femtocells for indoor coverage
+ pushed heavily as a solution, but issues remain
+ unit pricing, standards, spectrum availability, interference management
+ fits best with an integrated fixed/mobile operator

Click here for the story of Verizon-Femto at dailywireless.org

Mobile Network Coverage : Telkomsel

As of Q2 2008 PT. Telekomunikasi Selular (Telkomsel/TSEL) operates 23,056 BTSs (including 3G) and serves 52.44 mn subscribers (4% postpaid, 96% prepaid). 4.55 mn of those are new customers this year. As of Q2 2008 TSEL customers spent totally 32.1 bn MoU (Minutes of Use), which is equivalent to 178+ mn MoU each day. It is claimed that the current TSEL network can handle up to 54.8 mn subscribers.

TSEL network coverage as of Q4 2007

Highlight Telkom

Telkom is the prime and largest operator offering fixed telephony (PSTN), FWA (brand "Flexi") and DSL services (brand "Speedy"). However by looking at subscription growth, it seems that wired-services are not prioritized anymore. As of Q2/2008, Telkom serves 8.7+ mn PSTN, 8+ mn Flexi and 0.5+ mn Speedy subscribers. The number of flexi subscribers may overtake that of PSTN by the end of this year or at the begin of 2009 at the latest.

Mobile Network Coverage

How many BTSs are needed to completely cover a city on average? 50 ? 100 ? more/less ? If each operator has its own tower, then it would be 250 to 500 towers in a city (assuming there are 5 operators, 1 BTS each tower).

Around two years ago, when I came back from Germany after several years leaving, almost every 1 minute or maybe less of my trip from Jakarta to Bandung (also inside the cities) I saw a BTS tower!! Several times later people told me that indeed due to "cellular wars", our cities have turned into "Hutan BTS" (BTS forrests). Well this is the fact. This might:

• positively influence economic sectors (local cellular-supporting industries, maintenance outsourcing industries, PEMDA's income ? etc.)
• also negatively impact several other things e.g. introducing "optical" polution, destroying city layout (regulation is far slower than business!), injecting more electromagnetic radiations to the home (well, EMR-TTH :-)) etc.
  

I almost forget that the title is about mobile coverage. Below are two pics showing coverage areas of Indosat and Excelcomindo. I don't have that of Telkomsel right now, but intuitively, for TSEL you might see more "reds". Statistical numbers and values will be addressed in special threads, maybe in the next days.

Network Coverage (Indosat Q1/2006)

Network Coverage (Excelcomindo Q4/2006)

Looking at these, it seems that they might use a similar software ? Nokia-based ?

Highlight Axis (Natrindo - NTS)

PT Natrindo Telepon Selular (NTS - formerly Lippo Telecom Group) delivers its services under the brand "Axis". It is currently owned by STC (Saudi Telecom) via its malaysian subsidiary Maxis.

NTS has started its operation by February 2008. As of August 2008, they claimed that they have built approx. 2,000+ BTS and serve 1+ mn subscribers in Java, Bali and Sumatera (approximatly covering 25% of the population). They expect that they present nationswide in 2009 by increasing the network coverage with approx. 8,000 to 10,000 BTSs (Q4T/2009).

Highlight Smart Telecom (Formerly Sinar Mas)

Smart Telecom has entered the market by late 2007. "Smart" was chosen as a new company name after consolidation of PT. Wireless INdonesia (Sinar Mas subsidiary) and PT. Primasel. Currently it serves 500+ th. subscribers and covers major cities in Java, Bali and Lombok with approx. 1,500+ BTSs. The company intends to expand network coverage to Sumatera, Kalimantan and Sulawesi by the end of this year and expects to acquire around 2 mn new customers. It is roumored that recently, Smart has also acquired some shares of PT. Moratelindo (??).

Highlight Mobile-8

Mobile-8 (M8) was established in 2002. It acquired Komselindo and Metrosel in 2003. It is known as the first CDMA public cellular operator in the country.

M8 currently exists with two brands: "Fren" for cellular CDMA services and "Hepi" for FWA services. The latter was just recently launched (May 2008). As of Q1B/2008, its customer base reaches 3+ mn.

Highlight Three HCPT (Hutchison)

PT Hutchison CP Telecommunications Indonesia (HCPT) delivers its services under the brand "Three". It is the same brand as marketed in other countries by Hutchison group.

HCPT has started its operation by March 2007. As of August 2008, they claimed that they build approx. 6,000 BTS till Q4/2008 and currently serve 3.2 mn subscribers in Java, Bali and Sumatera (20% of the total customers of Hutchison group). They expect that they overtake Bakrie Telecom as the country's fourth largest cellular/mobile operator in 2009.

HCPT Status as of Q3M/2008

Three Coverage as of Q3M/2008 (Source/Courtesy Three.co.id)

Hutchison Group (Source/Courtesy Kevin Law/HGC)

Highlight XL (Excelcomindo)

In this new "Highlight" thread, I would archieve some actual facts (of my interest) related to indonesian telcos/ISPs.

Currently, XL (Excelcomindo Pratama) is the third largest telco in the country. This is currently justified if we look at the customer base and some financial performances of the company. The current champion is Telkom Group (inc. Telkomsel) while the "vize" champion is Indosat Group. The position might change in the (near) future, especially since XL "moves" quite progressive after TM acquisition and after the former Indosat CEO Hasnul Suhaimi leads this company.

Customer base

• June 2008: 22.9 mn
• July 2008: 24+ mn
• Dec 2008F: 27+ mn

Network

• August 2008: 14,000 BTS; covers 95+% population
• 2008 as of now: 380 mn calls/day; 60 mn SMS/day; capacity 6,500 SMS/s
• fiber optic deployed 2005: submarine 2,320 km, inland 3,520 km
• fiber optic deployed 2006: submarine 2,320 km, inland 5,530 km

From many sources

Highlight BTEL (Bakrie Telecom)

With respect to customer base, Bakrie Telecom (BTEL) is currently the fourth largest operator. As of Q2/2008 BTEL services more than 5.4 mn customers in 47 cities spread in Java, Sumatera and Kalimantan. Early this year BTEL is also granted an IDD license by the government, so one might expect that the company will be more aggressive in the next years.

BTEL Network Coverage as of Q4/2006 (Source/Courtesy BTEL)

SMS : A 23 Years Old Cash Cow

Want to know how rich are the cellular operators todays ? Let us make some calculations! For simplicity, we only consider Short Messaging Service (SMS) offered by the largest domestic operators: Telkomsel (TSEL), Indosat (ISAT) and Excelcom (XL).

The SMS production rate of these operators is quite fantastic. As of 2007, together they produced more than 400 mn SMS each day on average. Peak SMS production rates, which may happen in some special occasions, could be in the range of 1.5 to 2.0+ of the average rate. Detail average production rate for each operator can be seen in the picture.

Based on the current pricing and promotional schemes, the revenue obtained by each operator from Short Messaging Services is as follows. Note that this is the revenue for a single day!

The revenue given above contributes to around 20% - 30+% of the operators' total revenue.

Onnet vs. Offnet

This post shall actually be published one day in March :-) I haven't remembered precisely anymore the thing I want to address except that as indicated by the title. Maybe I'll just go for a rough idea.

I was trying to model traffic (relations, matrices, etc.) between operators. To obtain realistic results I had to assume a quite high factor for onnet traffic. That onnet traffic shall be higher than offnet, it is intuitively justified, because the operators always try to increase their customer base with many attractive marketing efforts, pricing schemes or other policies. Rough speaking, I had to use onnet factors in the range of 0.60 to 0.75. This was, informally, justified by some technical persons in the operators.

Recently, in a local/regional newspaper somebody said that "offnet traffic is still higher than onnet traffic though after promotional and marketing efforts" (-they don't charge for onnet traffic-). Is that really true ?? They said that onnet traffic comes at most to a figure around 40%. Right now, I could not give some numbers to argue against this. If this would really be the case, then in the traffic models between operators several things have to be taken into account:

• onnet and offnet traffic factors shall be a function of customer base
• types of networks (mobile cellular, mobile FWA)
• etc. ?
  

Below are some facts from the press:

• Flexi Jawa Barat, Banten --> onnet 40%; approx. 500.000 subscribers (around 5% of the total mobile/FWA subscribers in Jabar, Banten)