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Wireless in the home and office

The need for both 3G femtocells and Wi-Fi access points
December 2013

Solving the HetNet puzzle

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SMALL CELL FORUM

RELEASE 6.0
Small Cell Forum accelerates small cell adoption to drive the widescale adoption of small cells and accelerate the delivery of integrated
HetNets.
We are not a standards organization but partner with organizations that inform
and determine standards development. We are a carrier-led organization. This
means our operator members establish requirements that drive the activities
and outputs of our technical groups.
We have driven the standardization of key elements of small cell technology
including Iuh, FAPI/SCAPI, SON, the small cell services API, TR069 evolution
and the enhancement of the X2 interface.
Today our members are driving solutions that include small cell/Wi-Fi
integration, SON evolution, virtualization of the small cell layer, driving mass
adoption via multi-operator neutral host, ensuring a common approach to
service APIs to drive commercialisation and the integration of small cells into
5G standards evolution.
The Small Cell Forum Release Program has now established business cases
and market drivers for all the main use cases, clarifying market needs and
addressing barriers to deployment for residential, enterprise and urban small
cells. The theme of Release 6 is Enterprise, with particular emphasis on real
world and vertical market deployments, and the role of neutral host solutions
to drive the mass adoption of small cells in business environments.
Small Cell Forum Release website can be found here: www.scf.io

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Executive summary
Femtocells offer many benefits to mobile network operators, including expanding voice
and data coverage to in-building areas, offloading the large and growing amount
of mobile-data traffic, and enhancing user experience by increasing data rates and
providing new and exciting revenue-generating services. However, many of todays
homes and offices already have a Wi-Fi [1]access point and will continue to use it for
a variety of services and applications and consumers may not readily see the need to
add a licensed-spectrum femtocell access point, except to provide coverage for voice
and text messaging. In addition, there will be more Wi-Fi enabled smartphones and
consumer electronics devices entering the market so the utility of Wi-Fi will continue
to grow. But for 3G-enabled devices the femtocell offers advantages over Wi-Fi for
both the operator and the consumer, including:

Use with all 3G phones

Operator-managed services with enhanced Quality of Service (QoS)
Seamless service continuity with the macro network
Ease of configuration and use
Higher levels of security
Better device battery life.

Wi-Fi access points have advantages over 3G femtocells, as well. Their large installed
base, low cost, operator independence and familiarity to consumers and enterprises
make them a valuable component of many operators mobile data strategies.
For these reasons its clear that 3G femtocells and Wi-Fi access points will coexist in
the future. The consumer and enterprise will greatly benefit from having both
technologies available, and devices will be intelligent enough to optimally select the
most appropriate connection. Femtocells are critical to extend the 3G network into the
home, providing high quality voice calls and supporting data applications that require
more than best effort level of service. Wi-Fi access points, on the other hand, are
well situated to continue to support data applications for which a best effort level of
service is sufficient. The rapid growth in mobile data will remain a major driver for the
deployment of both 3G femtocells and Wi-Fi access points.

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Contents
1.
2.
3.
4.

Mobile Data Traffic is Growing Fast ..................................1

Consumer Considerations .................................................3
Operator Considerations...................................................5
The Challenge of Using Wi-Fi for Critical
Communications ...............................................................7
5.
Wi-Fi Penetration in Dual Mode Cellular Phones ...............8
6.
Battery Life in Wi-Fi Enabled Handsets ...........................11
7.
Conclusions ....................................................................12
References ................................................................................13
Tables
Table 2-1

Comparing 3G femtocells and Wi-Fi access points from the end users
perspective .................................................................................... 4

Table 3-1

Comparing 3G femtocells and Wi-Fi access points from the operators

perspective .................................................................................... 5

Figures
Figure 1-1

Femtocell network architecture ......................................................... 1

Figure 5-1

Smartphones as a percentage of total handset shipments (source ABI

Research) ...................................................................................... 8

Figure 5-2

Wi-Fi support in feature phones (source ABI Research ) ....................... 9

Figure 5-3

Global handsets with Wi-Fi support versus UMA support ....................10

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1. Mobile Data Traffic is Growing Fast

Mobile operators around the world are experiencing a massive increase in mobile data
traffic on their 3G networks. According to ABI Research, global mobile data traffic
surpassed 1.3 exabytes (EB, or 1018 bytes = one billion gigabytes) in 2008 [2]. By
2014, it is estimated that 1.6 EB of mobile data will be sent and received each month.
A leading US-based operator estimates that smartphones generate from 10 to 60
times more data usage than other advanced devices, such as 3G feature phones. The
rich multimedia functionality that smartphones enable, including streaming video and
audio, web surfing and email, allow consumers to enjoy an immersive content
experience. In addition, network enhancements which make more efficient use of
existing spectrum allocations are leading to increased wireless data rates and reduced
latency, thereby driving higher usage by creating a better user experience for mobile
data services.
70-80 per cent of mobile traffic is generated indoors, mostly in the home or office [3].
This creates another challenge for operators: delivering an excellent data experience
indoors requires excellent in-building signal strength. However, building walls and
windows significantly attenuate the signal from the outdoor macro network by as
much as 18 to 20dB.
As 3G traffic volumes continue to increase, operators are facing a major challenge to
support this growth and at the same time meet customer expectations for an
enhanced user experience, particularly within buildings. Two options that operators
can choose to help meet this challenge are deploying 3G femtocells and utilizing Wi-Fi
access points.
3G femtocells work by using operator-licensed spectrum to connect a mobile device to
the 3G network. Because the 3G femtocell is part of the same network that the phone
uses outdoors, there is no need to make any modifications or change any settings in a
standard 3G handset in order for it to operate with the femtocell. The 3G femtocell
access point must be connected to a broadband internet connection (e.g. DSL, cable,
fibre, etc.); the femtocell completes the voice call or data session by connecting to the
operators network through the broadband connection.

Figure 1-1

Femtocell network architecture

Wi-Fi access points work over unlicensed spectrum, and can be used by handsets that
have Wi-Fi capabilities. The handset may need to be manually configured to work with
a specific Wi-Fi access point. Any IP connection is then available on the phone via

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either Wi-Fi or 3G. However, in order to make voice calls and send SMS text messages
over Wi-Fi using the operators core network services, the handset (and network) will
also need to support either Unlicensed Mobile Access (UMA) [4], or a bespoke,
operator-provided SIP-based application. Alternatively, a voice over IP (VoIP)
application, such as Skype, can be installed on the handset. The Wi-Fi access point
also needs to be connected to a broadband internet connection.
Wi-Fi has advantages over 3G femtocells in some areas or for specific usage scenarios.
For example, it is inexpensive, operator independent, and already available in many
homes, offices and public hotspots. However, there are a number of considerations
that exist for both consumers and operators if Wi-Fi is to be used as the primary air
interface for mobile data on 3G phones and mobile internet devices.

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2. Consumer Considerations
Table 2-1 highlights a number of considerations for the end consumer when using
femtocells or Wi-Fi access points to improve the user experience for mobile services in
the home or office.
Area
Set-up and
configuration

Battery life

Device support
Operator independence

Interference

Cost

Security

Service & support

Environmental
credentials

Wi-Fi Solution
User must configure phone to turn
Wi-Fi on and attach to home /
office Wi-Fi network. User must
know SSID / password if router is
secured. (Degree of difficulty /
complexity varies by device.)
Battery life somewhat reduced due
to need for Wi-Fi radio to be
turned on in addition to the 3G
radio.
Wi-Fi enabled handsets only.
Any Wi-Fi enabled handset can
utilize a Wi-Fi access point,
regardless of operator or
geographical location.
Potential for interference via
competing use of other equipment
operating in unlicensed Wi-Fi
bands (e.g. cordless telephones,
baby monitors, microwave ovens,
security cameras, etc.).
Wi-Fi access points are
inexpensive (<$50) and often
already in place or bundled with a
broadband connection.
Wi-Fi capable phones, if not
already owned, must be purchased
for each household member /
employee.
User must configure Wi-Fi network
to be secure. Security preconfiguration (e.g. for operatorowned hotspots) can be used to
make set-up easier.
Support for the access point is
provided by manufacturer or
sometimes by the fixed broadband
service provider.
Due to less efficient power
management (especially in Wi-Fi
implementations deployed in the
existing installed base) Wi-Fi
typically consumes more power for
the same performance as a
femtocell [5].

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3G Femtocell Solution
All 3G handsets readily work with any
3G femtocell without requiring any
set-up.

Battery life unchanged.

All 3G handsets.
Only handsets / SIM cards from the
specific operator will work with that
operators femtocell, and only in
locations where the operator owns
licensed spectrum.
Interference avoided through use of
licensed spectrum and established
methods for channel separation.

Femtocell prices currently range from

$0-$275 depending on operator and
plan.
Household members / employees
must have 3G phones (any existing
3G phone will work).

Operator manages network to be

secure.

Support for femtocell is provided

directly by the mobile network
operator.
Efficient power management is an
integral and essential component of
3G.

Area
Advantages summary

Wi-Fi Solution

No new CPE required

Operator-independent
Can be used in any
geographical location
Improved environmental
friendliness from 802.11n
onwards

3G Femtocell Solution

Table 2-1

No handset configuration
required
Universal 3G handset support
(within operator)
Better handset battery life
Reduced radio interference
Seamless security
Single support point for
device and service
Environmentally friendly

Comparing 3G femtocells and Wi-Fi access points from the end users perspective

Wi-Fi access points have been commercially available since 1999. Setting up Wi-Fi
access points in the home and office has become much simpler over the past few
years. Consumers are familiar with Wi-Fi, and it is easy to use.
However, Wi-Fi usually requires some configuration on the mobile device, and on
some phones there are application level settings that need to be changed when using
the Wi-Fi network. The extra simplicity 3G femtocells bring in this regard can
potentially make a big difference to whether consumers will adopt the service or not.
By analogy, the phenomenal success of push email services on mobile phones, and
the corresponding failure of manually retrieved email services, demonstrates that the
difference between requiring the user to do something apparently simple (clicking a
button to retrieve email) and doing nothing at all (receiving email automatically) can
have a significant impact on user adoption.
Some existing handsets, like the Apple iPhone, manage the switch from licensed
cellular networks to Wi-Fi networks very well indeed for web browsing and other
internet services, creating a seamless experience for the end user. However, this
comes at the expense of increased battery drain as the handset is continuously
scanning for Wi-Fi access points. In addition, many older smartphones require the end
user to manually make the switch between networks, which can be cumbersome.
Seamless service continuity for voice calls and SMS over Wi-Fi is harder to achieve.
VoIP applications exist for the iPhone (e.g. Skype), but due to the lack of multi-tasking
in the current operating system, if an SMS message is received while Skype is active
the VoIP call will drop. Other smartphones with multi-tasking capabilities do not have
this restriction, but still require a VoIP client to be installed.

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3. Operator Considerations
Table 3-1 provides some operator considerations on the use of femtocells and Wi-Fi
access points to support in-building voice and data services:
Area
Offloading data

Customer Premise
Equipment (CPE)
Device support

Operator managed
services

Wi-Fi Solution
Bypasses the wireless carrier's
network entirely (except with
UMA or iWLAN). No need to
utilize the operators licensed
spectrum at all.
Many customers with broadband
already have Wi-Fi at home or in
the office.
Many 3G handsets dont have
Wi-Fi (see section Error!
Reference source not found.).
The operator may or may not be
the Wi-Fi / internet provider.

Operator
management of
Quality of Service
(QoS)

Wi-Fi operates in unlicensed

spectrum and service quality can
not always be ensured.

New marketing
propositions (e.g.
home-zone tariffs)

Wi-Fi can support homezone

tariffs with Unlicensed Mobile
Access, but UMA requires new
equipment in the network and is
supported only on a small
number of devices.
Wi-Fi does not support operator
managed voice, SMS or MMS
services, or seamless handover
with the macro network (except
with UMA).
Carriers will have to consider
operational aspects of
introducing new services to both
cellular and Wi-Fi networks (e.g.
support for content services
see below).

Seamless service
continuity

Operator familiarity
and ease of service
deployment

Advantages Summary

Table 3-1

Does not require the use

of the operators licensed
spectrum
Offloads data traffic
New CPE often not
required
Available in the majority
of smartphones today

3G Femtocell Solution
Offloads user data from the radio
and backhaul networks (future
femtocells will also offload the core
network).
Customer must obtain a femtocell.

Femtocells support all 3G handsets.

The operator remains involved in

the femtocell service and can
provide support to end users.
Femtocells use the operators own
licensed spectrum, allowing the
operator to maintain control over
interference and service quality
over the air interface.
All customer information is
available through the femtocell;
new tariffs and marketing
propositions are easily
implemented.
Femtocells support all the
operators services, with seamless
handover between the femto and
macro networks.
3G femtocells simply extend an
operators existing network further
into the home or office.

Offloads data traffic

Supports all the operators
3G handsets
Enables managed services
and QoS
Enables new tariff
propositions
Extends operator network
into the home or office

Comparing 3G femtocells and Wi-Fi access points from the operators perspective

Operators face the challenge of expanding the coverage and increasing the capacity of
their mobile networks, while providing an exceptional user experience to their
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customers. In addition, operators are continually looking for new revenue

opportunities. As Table 2 shows, 3G femtocells provide operators with advantages
over Wi-Fi for some of these areas. Femtocells complement the operators business
case more naturally than Wi-Fi, and simplify the management of new services.
In addition, femtocells extend the mobile operators brand into the home of the
customer, and can reinforce reliance upon the operators managed services. This can
enhance the stickiness of the operators products and services, positively impacting
the lifetime value of the customer. By contrast, if customers are educated to use Wi-Fi
in the home as an access point for mobile data, they may increasingly use Wi-Fi away
from the home as well. This can potentially reduce the operators revenues, and may
deliver a variable user experience affected by factors beyond the operators control.
Currently, operators gain a significant amount of revenue supporting content delivery
services, such as selling ringtones, music, videos, games and applications. When
connected to the operators own network (including femtocells) the customer can
purchase these types of content easily and with greater speed and a better user
experience than Wi-Fi. A Wi-Fi access point does not automatically reveal the identity
of the end user, which is required for billing, and also does not automatically reveal
the type of device the customer is using, which can be required for automatically
selecting the correct content format. Because a femtocell automatically provides this
type of data (just as the macro network does), content downloads and purchases from
the operators content portal are provided to the customer seamlessly (and the
operator is able to take a share of the revenue).

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4. The Challenge of Using Wi-Fi for Critical Communications

Communications via Wi-Fi are inherently less reliable than communications over a 3G
network. The unreliability stems from the fact that Wi-Fi operates in unlicensed
frequency bands. In unlicensed bands, no device has protection from interference, and
there is no centralized network manager to monitor, resolve, or mitigate interference.
According to the FCCs rules in the United States, an unlicensed band device must
accept interference caused by the operation of an authorized radio station, by
another intentional or unintentional radiator, by industrial, scientific and medical (ISM)
equipment, or by an incidental radiator [6].
The unlicensed frequencies in which Wi-Fi operates are used for many additional
purposes, including baby monitors, security cameras, VoIP telephony, car alarms,
some North American cordless telephones, gaming systems and remote controls.
Microwave ovens also operate in this band.
An Ofcom-commissioned report [7] recently revealed a variety of problems with Wi-Fi
performance in the UK, concluding that interference from baby-listeners, TV-senders
and the Free Public WiFi virus are slowing down connections and that in some places
(notably London) there are too many Wi-Fi networks interfering with each other. The
report concludes that dealing with the interference from legal AV transmitters and
baby-listeners is a hard thing to do in unregulated spectrum.
However, in practice general internet access using Wi-Fi works extremely well for most
people in most situations hence its widescale adoption. The interference problems
revealed by Ofcom affect relatively few people today (although its likely that this
could increase in future as Wi-Fi is used by more and more smartphones and
consumer electronics devices). Furthermore, Wi-Fi is improving all the time with the
evolution of standards. It is likely that Wi-Fi will remain very well-suited to data
applications for which a best-efforts level of service is acceptable, including web
browsing and general internet access for most users.
On the other hand, licensed spectrum has a significant advantage for applications that
require guaranteed QoS, including many voice and video services. A mobile operator
owning licensed spectrum may not want to deliver managed services in an unlicensed
band. Femtocells offer the operator greater control over the customer experience (and
therefore greater protection for the operators brand). With continuing use of
unlicensed spectrum by more and more devices, the differentiation offered by licensed
spectrum will become increasingly apparent. In fact, it can be envisaged that the
continued growth and success of Wi-Fi will increasingly support the case for femtocells
to deliver managed services, even in devices that have both 802.11 and 3G/4G.

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5. Wi-Fi Penetration in Dual Mode Cellular Phones

With Wi-Fi Access Points a part of many home and office networks and Wi-Fi access
becoming more ubiquitous in public areas (such as airports, malls, etc.), utilizing Wi-Fi
as a complementary access mode to the macro network can make a lot of sense for a
mobile operator. For example, AT&T in the United States has configured its iPhones to
automatically connect to its own Wi-Fi hotspots when in range (although AT&T data
services such as MediaNet, AT&T Mall and AT&T Music are only available on the 3G
network).
But despite increasing penetration in smartphones, Wi-Fi is unlikely ever to address an
operators entire 3G handset base. ABI Research forecasts that smartphones will peak
at less than 25% of total handset shipments (Figure 5-1), and a large number of 3G
feature-phones will continue to be produced without Wi-Fi capabilities (Figure 5-2);
popular examples currently on sale include the Samsung Tocco and the LG Viewty.
These feature-phones typically generate much lower volumes of traffic than
smartphones today, but consumers are rapidly adopting data services even on basic
3G handsets. For example, owners of INQ Mobiles low-end (Wi-Fi-less) 3G handsets
on the 3 UK network are aggressively using social networking applications, mobile
email and instant messaging in a manner normally expected of smartphone owners.
About 65% of them use Facebook on their phone almost every day [8].

Figure 5-1

Smartphones as a percentage of total handset shipments (source ABI Research)

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Figure 5-2

Wi-Fi support in feature phones (source ABI Research 9)

Furthermore, while future smartphones will have a more seamless integration with WiFi (like the iPhone) many existing smartphones provide a relatively poor Wi-Fi
experience, with complex configuration and manual steps required by the end user.
Therefore, femtocells have an advantage in providing a better mobile data experience
to 3G feature-phones and to the existing installed base of smartphones. Even when a
smartphone does provide excellent Wi-Fi integration, some consumers will choose not
to configure Wi-Fi, or will leave the Wi-Fi radio switched off to preserve battery life.
These subscribers can only be served from the 3G macro network or a femtocell.
It should be noted that Unlicensed Mobile Access solves many of the issues with using
Wi-Fi on mobile phones highlighted in Table 2-1 and Table 3-1. UMA enables seamless
service continuity with the macro network, allowing all of the mobile operators
services to be accessed over Wi-Fi. But as well as requiring additional equipment to be
installed in the operators network, UMA relies on the handset having a UMA client as
well as Wi-Fi capability.
Although a number of operators have implemented UMA in their networks, the number
of handsets with UMA remains a small percentage of the number of Wi-Fi enabled
handsets (see Figure 5-3).

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500
450

Mullions of Units

400
350
300
250
200
150
100
50
0
2008

2009

2010

2011

Wi-Fi for data

Figure 5-3

2012

2013

2014

UMA

Global handsets with Wi-Fi support versus UMA support 10

Integration of a UMA client in handsets is becoming simpler, but until a much greater
number of UMA-capable handsets are available to consumers, the success of UMA
services is likely to remain limited.

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6. Battery Life in Wi-Fi Enabled Handsets

According to IMS Research, the gap between the power demands and the battery
capacity of smartphones is already a significant problem for the mobile phone
industry, and the gap is set to widen over the next few years [11]. Therefore its
important that the network should be very efficient in delivering services in order to
preserve handset battery life as much as possible.
In order for a handset to receive calls and SMS messages from the macro network,
the 3G modem must remain switched on. When a consumer with a Wi-Fi enabled 3G
handset enters the coverage area of an accessible Wi-Fi access point, either the phone
will automatically switch over to utilize the Wi-Fi access point for data services, or the
user can manually configure the handset to use the Wi-Fi network. In both cases, the
handsets Wi-Fi modem must be switched on in addition to the 3G modem for
continued seamless delivery of voice calls and SMS. Generally speaking, a handset
that has both its 3G modem and its Wi-Fi modem active will drain its battery faster
than a handset that has only its 3G modem active.
Interestingly, Apple Computer has published on its website [12] suggestions on how
to extend the battery life of the iPhone. Included among common-sense ideas such as
turn off push notifications and minimize use of location services is Turn off Wi-Fi:
If you rarely use Wi-Fi, you can turn it off to save power. This acknowledges that
having two radios on simultaneously (both the 3G radio and the Wi-Fi radio) drains the
battery faster than having only the 3G radio switched on. The suggestion goes on to
read if you frequently use your iPhone to browse the web, battery life may be
improved by using Wi-Fi instead of cellular data networks. However, this presupposes
that no femtocell is available for the iPhone to access, and that only the macro
network is available. Accessing a local femtocell is significantly less taxing on a
phones battery then accessing the macro network.

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7. Conclusions
It is clear that Wi-Fi will remain an important component of many operators mobile
data strategies and some analysts have expressed the view that Wi-Fi alone is
sufficient to meet the needs of operators and consumers, and that femtocells are
therefore not needed [13]. However, in practice femtocells and Wi-Fi have
complementary strengths. This paper emphasizes the role that femtocells will play
alongside Wi-Fi in providing the best possible mobile data experience to consumers.
Femtocells offer many advantages to both operators and consumers, including:

Femtocells work with all 3G handsets.

Femtocells provide seamless service continuity with the macro network
(including support for the operators voice, SMS, MMS and content services).
Femtocells need no configuration or special settings in the handset.
Femtocells operate in licensed spectrum, allowing the operator to provide a
managed service and maintain control of QoS.
Femtocells do not require use of a second radio on the handset, thereby
preserving phone battery life.

Wi-Fi has complementary strengths, including low cost, ubiquity and operator
independence. Therefore in future we see Wi-Fi and femtocells co-existing in harmony
often integrated into a single home gateway box.
This view has been eloquently expressed by Ralph de la Vega, CEO of AT&T Mobility,
Its not going to be one thing; it will be a combination of things: taking fibre closer to
the home, Wi-Fi and femtocells. A combination of all of those is going to help us
manage bandwidth and provide a great experience to our customers no matter where
they connect [14].

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References
1
2
3
4
5

6
7
8
9
10
11
12
13
14

IEEE 802.11 based technologies

ABI Research, Wi-Fi Capable Handsets, 1Q 2009
Informa Telecoms & Media, Mobile Broadband Access at Home, Aug 08
UMA is a telecommunication system defined by the 3GPP that extends mobile
voice and data over IP access networks.
See for example Light Readings review of the Vodafone Access Gateway by
Gabriel Brown: the femtocell provides much greater coverage than Wi-Fi, despite
the tiny amount of power the device puts out
(http://www.lightreading.com/document.asp?doc_id=183505).
47 C.F.R. Sec. 15.5
Estimating the Utilisation of Key Licence-Exempt Spectrum Bands, April 2009
See http://www.fiercebroadbandwireless.com/story/low-end-devices-drivingdata-usage-3-uk/2009-06-14
ABI Research, Wi-Fi Capable Handsets, 1Q 2009
ABI Research, Wi-Fi Capable Handsets, 1Q 2009
See http://www.fiercewireless.com/story/report-handset-requirements-outpacingbattery-life/2009-09-29 http://www.apple.com/batteries/iphone.html
See for example Who needs femtocells if we have Wi-Fi?, GigaOM
(http://gigaom.com/2009/11/02/who-needs-femtocells-if-we-have-wi-fi/)
See for example Who needs femtocells if we have Wi-Fi?, GigaOM
(http://gigaom.com/2009/11/02/who-needs-femtocells-if-we-have-wi-fi/)
Interview with Telephony Online, May 2009

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