TMN Small Cells Americas Market Update 2014

A TMN PUBLICATION

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Making sense of the world’s mobile networks

// SMALL CELLS DECEMBER 2014

AT&T h t i w s Q&A asil// r B i O &

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THE MOBILE NETWORK // SMALL CELLS MARKET UPDATE ////////////////////////////////////////////////////////////

SMALL CELLS AMERICAS MARKET UPDATE

Hi!

AT&T 03 Tom Keathley

GETTING READY 04 Small Cells Americas 07 Alberto Boaventura, Oi Brazil

MARKET MAKERS

WELCOME TO THIS SMALL CELLS MARKET UPDATE, TMN’S SECOND OF 2014.

Dedicating a Small Cells Market Update to the Americas market served to bring out some of the differences both between North and South (see our main article) but also between these markets and those in the rest of the world. One simple example might be the different spectrum holdings, but also the different physical and topological properties of urban and large scale in-building environments that are far more prevalent in the USA, for example, than other markets.

So our second market update takes an American-centric look at recent small cell developments, from the operators making the new (or not making the news) to the vendors who have released products into the market in the second half of 2014.

08 The companies making the market in late 2014

And just in case you need a simple go-to visual that sums up analyst predictions for this market, we’ve collated them into a single infographic covering backhaul, access point and DAS predictions.

CARRIER WI-FI

Editorial Director: Keith Dyer Email: keith@the-mobile-network.com

10 Making Headway

Thanks for reading.

Commercial Director: Shahid Ramzan Email: shahid@the-mobile-network.com

INFOGRAPHIC 12 Taking off

TMN Market Update is published

by TMN Communications Ltd. © 2014 TMN Communications Ltd.

OPERATOR INTERVIEW

INTERVIEW WITH TOM KEATHLEY, SVP NETWORK PLANNING, AT&T How is AT&T maintaining service quality and connectivity for its customer?

What major strategic goals is AT&T hoping to achieve with small cell deployments?

AT&T has invested more capital into the U.S. economy than any other public company. Between 2008 and 2013, we invested more than $140 billion into our wireless and wireline networks, including spectrum acquisitions and wireless operations.

Mobile data traffic on AT&T’s national wireless network increased nearly 150 percent in the past year-and-a-half (Nov. 2012-July 2014). And over 50 percent of the traffic across our networks is video-derived.

In order to support this exponential growth in traffic and maintain service quality, AT&T is at the forefront in deploying state of the art technologies.

We’ve seen the expansion of our 4G LTE network which now covers 300M POPs. AT&T now has LTE Advanced deployed in the network and we anticipate a broader deployment of carrier aggregation into 2015. AT&T was also one of the first operators to deploy VoLTE which is 5-7 times more spectrally efficient than UMTS circuit switched voice and delivers the same low dropped call rate and a superior quality experience with HD Voice. AT&T also continues expanding indoor coverage through the deployment of Distributed Antenna Systems and small cells.

AT&T’s strategic goal is to place small cells in a cost effective way to provide wireless coverage in difficult to serve areas. It’s not possible to place macro cell towers all over downtown, or on the 50-yard line of a football game, so AT&T has been an early leader in the industry on the next generation network tools to combat these limitations – small cells and Distributed Antenna Systems (DAS). AT&T has deployed this technology in 48 states, Washington, D.C. and Puerto Rico so far.

What are AT&T’s growth plans for small cells?

In 2012, AT&T announced Project Velocity IP (VIP), a multi-year plan to invest for growth. We’ll add to and improve our networks. Our goal is to give more people high-quality, fast wireless and wired services.

Project VIP includes the deployment of small cell technology, macro cells and additional distributed antenna systems (DAS), which will increase the density of our wireless network. The wireless network densification will further improve network quality and increase spectrum efficiency.

With Project VIP, we’re delivering faster speeds and new services to millions more customers. Growth on these platforms is going strong. We exceeded build targets across the board in 2013.

What is your vision for the anticipated future for small cells?

With multi-standard solutions now maturing, I see them being introduced in the 1st half of 2015. LTE-Advanced features like Carrier Aggregation, eICIC, and others will follow. Beyond the imminent capabilities already defined in standards, I see continued evolution and changes based on work going on now in the Small Cell Forum and other industry bodies which will shape the future capabilities and deployment strategies.

This was first published by Avren Events, the organiser of Small Cells Americas.

For more operator interviews see www.smallcellsamericas.com

S L L L CE

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s of term n i t the ” ye ound there r “ a t l o l ta re n et ts, bu We a n e mark m a y f o o l ns dep re sig mass a e r he ls. icas t ll cel a m s Amer for eady r g n i gett

t is now two years and counting since AT&T made its much-repeated and referenced commitment to deploying 40,000 small cells in its network by 2015.

That announcement, made in November 2012 as part of AT&T’s Project Velocity IP (VIP) launch, remains a benchmark in an industry that, outside of South Korea and Japan, has seen more lip service paid to the benefits of small cells than actual deployments on the ground (or on the lamppost).

It has often been overlooked, however, that the 40,000 small cells that AT&T said it would deploy were in addition to a full 10,000 extra macro cells. In other words, for every new macro cell that AT&T would be building through 2013 and 2014, it would be placing “just” four small cells. So although the 40,000 promise has been something that the small cell industry has hung its hat on over the past two years (how often have you seen it in a

4 TMN MARKET UPDATE

powerpoint, infographic, an article such as this) it is as well to keep it in context.

40,000, in a constrained network in the world’s biggest markets is not… well it’s not the millions of small cells you might expect.

What of AT&T’s rival operators in that time? We’ve seen Verizon too take the step forward to small cells but be much quieter about the numbers it intends to deploy.

Contracts for lightradio ( 9764 Metro Cell Outdoor and the 9768 Metro Radio Outdoor)small cells with Alcatel-Lucent and for Ericsson’s micro RRUS “small cells” (connected to RBS6000 baseband) were announced. But actual public numbers remained elusive, although there was a commitment to 200 LTE small cells in 2013, which is really a drop in the ocean of Verizon’s network. In Verizon’s view, this stuff is commercially sensitive. Not only that but it has a commitment to enhancing capacity from available frequencies – of which it has plenty. What is has released

MARKET UPDATE: SMALL CELLS AMERICAS

RCR Wireless reported: “The summer of 2014 could be labeled as the “Summer of voice over Wi-Fi” since the service seemed to come out of nowhere and get a lot of attention.

is on a per-project, such as its 22-node instalment in Atlanta’s Centennial Olympic Park. And the operator is also one of the T1 players likely to have been looking closely at Ericsson’s Radio Dot system as a solution for large enterprise coverage. That said, earlier this year it named Samsung as a supplier for 4G LTE indoor small cells for the small-to-medium business market - up to 60 simultaneous LTE users on the unit.

However, despite Verizon’s seeming reticence to bang the small cell drum, one industry consultant that runs coverage and capacity numbers for operators, Wireless 2020’s Randal Schwarz, told a recent conference that in his opinion Verizon is looking at a tab of about $800m to cover necessary investment in small cells in 2015, and then a further $1.2bn in 2016. Indeed, CTO Fran Shammo may agree, telling an investor conference in August: “The reason our capex will not decline is because in wireless you have to build out these small cells, these antenna systems and inbuilding coverage if you want to stay ahead of the capacity and give the customer the experience that they want. If you think about voice-over-LTE, that densification has to be pretty strong if you want to hold that high-quality call throughout your network.”

Sprint is another to have made a commitment in 2012 to developing a HetNet, with initial small cells deployments at targeted sites and buildings, and then outdoor deployments in dense urban areas. T-Mobile, on the other hand, has been less keen – claiming that its higher frequency network is already denser than its competitors, and not as capacity constrained. It has also targeted deployments in 700MHz, which will necessarily be a macro play. The merger with MetroPCS also gave it some 6,000 distributed antenna system (DAS) nodes that MetroPCS has deployed, developing some strong and deep in-building coverage from those DAS systems.

So although there has undoubtedly been momentum, we are not “there” yet, in terms of mass small cell deployments. There are several reasons why.

One – it’s just to early still, there’s still lots of cost benefits and spectral efficiencies to squeeze from existing macro infrastructure.

Second, cost – the cost of getting onto the physical infrastructure – but also the associated complexities of handling planning, interference management, interlayer interoperability. If you think these are trivial, consider that AT&T developed its

own tool, known as HARP, to do just exactly these tasks – so it could bring a more cost efficient and automated process for small cell planning and deployment.

Third – carrier and service provider WiFi. One of the proposed “drivers” for small cells in the North American market would be the necessity of good coverage in dense urban areas, and indoors, to support VoLTE. Yet that key proposition looks to have been undermined a little by the growing profile of VoWiFi – not the free for all VoIP app version, but the IMS-controlled VoWiFi services that operators are happy to see infill where their own coverage or capacity may be lacking. The launch of the iPhone 6 and 6s are of course critical in both device availability, but also public perception, for VoWiFi. RCR Wireless reported: “The summer of 2014 could be labeled as the “Summer of voice over Wi-Fi” since the service seemed to come out of nowhere and get a lot of attention. Both Sprint and T-Mobile US now have VoWi-Fi services in the market, and Verizon Wireless and AT&T Mobility have expressed interest. T-Mobile US actually launched a home voice WiFi service a couple of years ago as a substitute for an indoor femtocell.

But, the VoWi-Fi moniker has definitely gotten more attention in 2014.”

And if WiFi becomes more ubiquitous?

What of the City of New York stating it will make ad-funded WiFi hotspots available through the city, using its old payphone inventory to provide WiFi zones it calls Links.

5 TMN MARKET UPDATE

MARKET UPDATE: SMALL CELLS AMERICAS

In Latin America it’s a different story. Reference the chart below from research organisation VisionGain, which has had a close look at global forecasts for small cell deployments. Here we can see a minimum of 12% growth on an annual basis over the next five years, with a total half a million plus small cells across the region by 2019.

V

isionGain analyst Ben Lemieux points out that 80% of Latin America’s 600 million population is urban-based and PC penetration is low (LATAM subscribers will use their mobile device as their primary broadband service), third-party VoIP and messaging apps are increasingly popular in the 18-35 demographic, while voice usage in the region is among the lowest in the world. All of this means that the region will face intensifying data demands which will require capacity solutions in densely populated urban areas.

“Operators will be looking to upgrade their networks cost-effectively, as ARPU in most of these national markets is between $1520. We believe that small cell deployment strategies in Latin America will stem from existing operator commitments to LTE and

a desire to strengthen data provisioning to a growing number of urban smartphone users in the region,” Lemieux said.

Lemieux states that the more developed and populous LATAM nations will be driving the charge behind small cells: predominantly Brazil, Argentina, Mexico, Colombia, Uruguay, and Chile.

“What we are seeing in LATAM is a regional shift towards data services.

The region is showing a healthy 12% YoY growth in its Internet population. The economies of Brazil, Colombia, and Peru are growing quickly (4-6% YoY), which we expect will translate to higher ARPUs and greater migration to postpaid mobile data services in the near future.

It is this significant, impending growth that we expect operators to address using small cells, carrier Wi-Fi, and LTE.”

In terms of operator-vendor partnerships we’re seeing more and more come out of this region. Airspan Networks started the deployment of a 2.6 GHz TD-LTE network in Sao Paulo state using its Air4G high power compact small cell back in 2012.

“We have taken the decision to aggressively deploy the LTE-Advanced ready systems in our concession area in Brazil’s Sao Paulo State because of its ability to quickly offer very high-quality Internet connectivity to a large footprint,” commented Farès Nassar, CEO of ON. The Brazilian unit of Telecom Italia, TIM, is partnering with Huawei to deploy small cells in its 3G network. TIM is using the Huawei Micro BTS solution, making it the first operator in South America to adopt the solution. “Our priority is to focus throughout 2014 on the use of small cells in the 3G network, and also on extending them to the 4G network,” said Marco Di Costanzo, TIM’s mobile network director, in a statement.

6 TMN MARKET UPDATE

And TIM plans to implement thousands of small cells nationwide by 2016.

Tim has another agreement with Alcatel-Lucent to integrate femtocells to its 3G network. Over a three-year period from 2014, TIM Brazil will make use of Alcatel-Lucent’s Enterprise Cell 9362, Homecell 9361, and Metrocell Outdoor 9364 to help in the delivery of a cost effective solution to improve coverage and capacity for subscribers. The project will be expanded as part of the network’s overall infrastructure “TIM will make significant investments in femtocells by 2016,” said Daniel Hermeto, Director of Supplies and Supply Chain at TIM Brasil.

And in a more niche case, but one relevant to the type of diversity the Latin American market holds, Israeli firm Gilat Satellite Networks had previously announced the deployment of its CellEdge small cell-over-satellite solution at 20 rural sites in Brazil’s Parana state.

This is aside from the driver of the World Cup, and the coming Olympics, which have seen all the Brazilian operators work on shared-DAS and dense coverage and capacity solutions, encompassing WiFi and small cells. (see inforgraphic). Oi Brasil has also shared its own plans for the short, medium and long term, and you can see the extent to which small cells of all types play in its vision, with femtocells, indoor and outdoor Small cells, Cloud RAN and WiFi all referenced.

OPERATOR INTERVIEW

ALBERTO BOAVENTURA, TECHNOLOGY CONSULTANT, OI BRASIL How has Oi Brasil’s small cell strategies evolved in the past year?

What have been the lessons learned from previous deployments for future small cell deployments?

Currently small cells are an indispensable tool for improving customer experience because they can address the issue of providing great coverage at perimeters of areas of coverage, and also the fact that 80 % of all mobile broadband communications are generated indoors.

There is no single strategy to solve indoor coverage but small cells/femtocell are among the best tools - due to their combination of rapid and simple rollout with efficient coverage. More recently, small cells have received fame as a solution for high traffic density solution, such as stadiums and public arenas.

By 2013, small cells (using licensed spectrum) had a rather timid role in Brazil due to the high regulatory barrier as the Brazilian Regulator charged a tax indiscriminately to any size of base station This was solved with a resolution for the reduction of fees for any station below 1W. But for small cells (> 5W), especially outdoors, there is still the same obstacle.

Thus, Oi is still analysing small cell solutions until the tax obstacle is solved. In the meantime the overall initiatives at Oi includes: RFI; RFP; certifications; pilots and new business modeling such as planning tool purchasing, new architecture evaluation, backhaul and fronthaul solutions evaluation; and new colocation partnership developments.

Oi was a sponsor for providing telecom infrastructure (fixed and mobile 2G/3G/4G) for 12 cities during the FIFA World Cup 2014. That represents more than 70 event venues: from stadiums, hotels and press centres with a fully redundant WAN Backbone to support 22 x ISP from 2 MBps to 1 Gbps; 70 x MPLS connections from 6 Mbps to 155 Mbps; 2 x LAN to LAN connections of 10 Gbps. There were more than 1,000 network elements (including core switches, access switches and firewalls) and 700 network access points as well as 7,900 cat5 network ports and accessories.

For instance, in Rio’s Maracanã stadium Oi provided infrastructure that totalled 217 Access Points - each with 450 Mbps.

The Wi-Fi traffic for all operators in Maracanã during 6 matches surpassed 1900 GB. Interference and backhaul were the biggest concern for this project and the critical success factor for quick solve problems was excellent trained professionals with very efficient tools (planning and measurement apparatus).

What is Oi’s 5 year plan for small cells in Brazil?

Oi has by far the largest number of carrier Wi-Fi hotspot in Brazil, and by the end of 2014 will reach over 1 million access points. Beyond this Wi-Fi initiative, currently we are preparing our company for small cells/Hetnet support: discussing with suppliers; understanding architectures and internalizing and certifying technologies.

In terms of overall vision, small cells have an important role for TCO reduction when the traffic density (Mbps/km2) will go above 800 Mbps/km2. We are expecting that five years from now small cells will

be the most common deployment for street level in big cities downtown and for indoor coverage – especially as new technologies come online.

In the meantime we have started pilots and a few deployments this year and next year small cells will be considered as an important alternative for indoor coverage, with outdoor deployments considered for hotspots around stadiums, hotels, shopping venues and areas of very concentrated traffic.

7 TMN MARKET UPDATE

MARKET MAKERS

MARKET MAKERS Those topics and companies making waves in the second half of 2014.

2014 has seen companies continue to innovate in and around the small cell area. Below we have pulled out just a few that caught The Mobile Network’s eye this year – with an emphasis on developments in the second half of the year, and on those that may have an impact in the Americas.

One thing that’s immediately noticeable is the lack of product action this year, following the two blips around Mobile World Congress and Small Cells World Summit which filled our Small Cells Market Update in June.

8 TMN MARKET UPDATE

If you wanted to pick a theme this year it would be around in-building overage solutions, and the proposed move to C-RAN type architectures in general – in dense urban areas included. This is interesting as it really blurs the line between the classic definition of the small cell - a discrete pico or femto unit – and the remote radio head/integrated antenna product connected to pooled baseband unit. This is no doubt why the Small Cell Forum has made the development of a track on Virtualisation of the Small Cell RAN a key feature of its work in the second half of this year, to provide some guidance and insight as operators and their suppliers work out the benefits and requirements.

Alcatel-Lucent Attracted attention for its deal with advertising sign (think those signs you see at bus stops and in the street)

owner JC Decaux for a plan to integrate small cells into the signs. It’s not so much that this is a great technical innovation – more a sign that companies are thinking about how they can get deployment at street level, in as ubiquitous but also non-intrusive way as possible. Of course, there’s the added possible attraction of local-ads, offers, etc. Huawei followed Alu with a similar announcement with the same company later in the year.

In small cells themselves, the company said it would have its previously announced multimode enterprise class cells (the ones on the FSM9955 Qualcomm chipset) generally available in 2015.

Also notable was Alu’s investment in Blink.

Blink is also a competitor to Sub10 Systems, a company formerly announced by Alu as a small cell backhaul partner. Alu said

MARKET MAKERS

that it was particularly attracted by Blink’s possible application as wireless fronthaul technology for C-RAN architectures.

In 2014 Airvana joined in with what is a growing number of approaches to providing in-building capacity (see Ericsson Radio Dot, Huawei Lampsite, Spidercloud E-RAN for other examples) and coverage via what might be termed an enhanced DAS/ C-RAN for indoors approach.

Its June announcement of the OneCell – an LTE small cell Cloud RAN system for enterprise was followed, the company says by “a great deal of interest from operators who view OneCell as providing the scale and performance characteristic they need for large “DAS-scale” deployments.”

Airvana says it is in active discussions with a number of Tier 1s plus smaller operators and neutral hosts. The current focus is on operator trial activity and interoperability testing with enhanced packet core (EPC) vendors.

If you are reading this at Small Cells Americas, look out for initial findings from Airvana from a formal study comparing the economics of cloud RAN small cells with DAS. Perhaps of most recent note, given the recent buzz around VoWiFi, is Cisco’s launch of an end to end solution, in the network, aimed at enabling service providers to offer HD Voice over WiFi. These services would “complement” cellular voice services, Cisco said. The voice

tech formed part of Cisco’s launch of its Universal WiFi service, and can be provided on a variety of access points, including the Aironet 1570, the company’s carrier grade outdoor WiFi access point. Other service elements are the 8500 Wireless Controller, ASR 1000 Series router for subscriber management, and the ASR 5000 Series Small Cell Gateway for integration with the mobile packet core.

Earlier in the year Commscope introduced its ION-E integrated indoor wireless system – a sort of DAS on stilts.

The company now claims it has trials with “at least” two major operators in Europe, and a further two in the USA. Yet in addition to DAS, the company is working on metrocell solutions and acquired UK-based Alifabs in July 2014 to expand metro cell and small cell services and to provide additional support for European wireless operators as LTE network deployments accelerate. In September, it announced more small antennas intended for the metro layer and cell densification.

For Commscope, site acquisition, power and backhaul remain the main concerns when it comes to small cells. But it also sees a need for increasing operating efficiencies in the macro network. To meet those concerns it has developed DAS that automate much of what was done by skilled technicians in the past, while its SiteRise connectivity innovations are

intended to improve and optimise the RAN for capacity. Simplifying the RAN extends to improving deployment, where innovations in equipment have led to easier and higher quality installations that in turn lead to increases in capacity.

One technology advance is sector sculpting, an advanced approach to antenna pattern shaping that boosts network performance by controlling interference between sectors. It also helps in increasing As noted above Huawei has also done a deal with advertising hoarding player JCDecaux, which it was able to position within its cloud sourcing small cells strategy – a term for enabling operators to take advantage of a range of possible sites, locations and sources of connectivity. Also on the partnership theme, the company refreshed its design and planning software capabilities by partnering with Ranplan for its indoor/outdoor planning tools.

It’s probably also worth noting that this company is on a solo mission to make 4.5G a recognised term for a combination of LTE-A features and 3GPP’s R14 and R14.

In amongst the list of technologies that are being nominated as part of some putative 4.5G are some relevant to small cells – such as cloud architectures, and the requirement for highly reduced latencies – but so far there’s been no specific messaging around small cells and Huawei’s attempts to market 4.5G.

9 TMN MARKET UPDATE

: I F I W IER

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The early part of 2014 may well be seen, in retrospect, as a major turning point for carrier-grade Wi-Fi, and all the emerging business model options which rely on it.

This is because several important trends converged in this year.

BY ADLANE FELLAH, FOUNDER AND CEO, MARAVEDIS-RETHINK AND WIFI 360

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i-Fi started to be fully integrated with other networks such as cellular via advances like Passpoint 2.0 and Next Generation Hotspot. It started to expand into new sectors, such as the Internet of Things, where new business cases could be found. Its performance was boosted by the adoption of new standards like 802.11ac.

Its coverage was expanded further through the roll-out of ‘homespots’.

And service providers of many kinds started to harness Wi-Fi in new ways. From simple internet access services, or mobile data offload, the models have evolved rapidly, and the biggest change is the proliferation of companies using Wi-Fi in ways that will transform their economics and services.

However, the industry has still only really scratched the surface of the huge opportunity for wireless connected devices.

MSOs

MSO strategy has particularly been driven by the rise of the ‘Community Wi-Fi hotspot’, a wireless home gateway with two SSIDs, one of them private, the other open for use for public access.

The five leading US cable operators are deploying aggressively, with Community Wi-Fi hotspots an increasingly significant part of their footprints, and they also support mutual roaming via their Cable Wi-Fi initiative. Comcast recently reported 3.6m hotspots and Cablevision said it hit its goal of reaching one million Wi-Fi

public access points by year end five months early. Cablevision says its Optimum Wi-Fi service now hosts over 250m sessions a month, averaging 4Gbytes of data a month. Comcast will more than double its numbers to eight million by year end, with seven million being Community Wi-Fi hotspots.

MNOs

Some operators speak of instances where 50% of cellular traffic disappears overnight when seamless authentication is added to an existing stable Wi-Fi installation, such as at an airport. A few MNOs have said that, once they have LTE widely deployed, there is less need for Wi-Fi, but a larger number observe that, when 4G is offered, overall data usage leaps dramatically, increasing the need to offload in order to maintain QoS. Wi-Fi first is even being adopted for consumer wireless services , especially in the US, where several MVNOS, such as Scratch Wireless, plus T-Mobile (and reportedly Sprint soon) offer deals where Wi-Fi is the default connection and the user only goes onto cellular networks when good quality Wi-Fi is unavailable.

However, there are still challenges, and while some of the concerns of previous years, such as device availability and security, have been tackled aggressively, new issues are preoccupying providers, such as clarifying the business model, as well as improving QoS and reliability, and keeping up with the roadmap.

Nonetheless, the carrier landscape has been transformed by some key developments: • Increasing investment in carrier-grade Wi-Fi networks, capable of supporting QoS and service variety similar to those of other operator systems.

• Shift towards mobile, cable and telco operation of Wi-Fi hotspots • Full integration of Wi-Fi into their mainstream networks and services • Rising adoption of homespots, a Wi-Fi technology which relies on control of broadband lines in the home, to increase coverage at low cost

These have brought new factors into the business mix, both the increased cost of supporting or upgrading to carrier-grade Wi-Fi and to converged networks; and the potential new revenue-generating services.

These include voice services, IoT offerings and roaming revenues. All these trends will drive an increase in the installed base of public Wi-Fi hotspots accessible to carriers to reach over 8m, a figure which will rise to 12.23m in 2018 (excluding homespots).

HOTSPOTS (EXCLUDING HOMESPOTS) NORTH AMERICA CENTRAL AND SOUTH AMERICA EUROPE ASIA AUSTRALIA AND OCEANIA MIDDLE EAST & AFRICA TOTAL

2013 813,791 305,775 594,589 5,389,754 29,107 32,149 7,165,164

2014 974,335 327,733 686,799 6,207,310 32,059 37,957 8,266,193

2015 1,182,533 352,176 827,561 6,629,557 35,893 50,315 9,078,035

2016 1,372,851 399,028 987,301 7,149,509 40,818 62,037 10,011,545

2017 1,615,254 462,517 1,160,608 7,718,726 46,272 77,215 11,080,593

2018 1,883,400 520,557 1,349,527 8,321,808 52,414 101,690 12,229,397

BY TYPE OF PROVIDER (HOTSPOTS ONLY) MNOS AND FIXED FIXED BROADBAND OPERATORS PLATFORM PROVIDERS VENUE CONTROLLED TOTAL

2013 3,055,952 318,052 8,000 3,783,160 7,165,164

2014 3,578,220 483,701 15,000 4,189,272 8,266,193

2015 3,858,783 634,321 22,500 4,562,431 9,078,035

2016 4,168,267 739,016 33,750 5,070,513 10,011,545

2017 4,558,215 849,767 50,625 5,621,986 11,080,593

2018 4,982,908 965,368 75,938 6,205,184 12,229,397

BY VENUE TYPE (HOTSPOTS ONLY) AIRPORTS HOTELS CAFES, RESTAURANTS RETAIL & OUTDOOR MUNICIPAL OUTDOOR AIRPLANES TRAINS OTHER TOTAL

2013 5,915 321,416 2,856,770 3,844,637 15,794 3,273 1,196 116,163 7,165,164

2014 6,018 334,359 3,077,392 4,149,784 15,794 3,415 1,503 677,928 8,266,193

2015 6,118 347,894 3,323,954 4,488,903 20,733 4,743 1,815 883,875 9,078,035

2016 6,212 362,050 3,600,154 4,866,929 31,196 7,002 2,610 1,135,392 10,011,545

2017 6,306 376,860 3,910,288 5,289,653 48,170 10,346 3,693 1,435,277 11,080,593

2018 6,386 397,905 4,259,351 5,763,907 77,512 15,794 6,508 1,702,034 12,229,397

BY TYPE COMMERCIAL HOTSPOTS COMMUNITY HOTSPOTS - RESIDENTIAL - BUSINESS LOCATIONS - TOTAL COMMUNITY HOTSPOTS TOTAL HOTSPOTS

2013 7,165,164

2014 8,266,193

2015 9,078,035

2016 10,011,545

2017 11,080,593

2018 12,229,397

18,887,055 491,274 26,543,494 26,543,494

37,448,382 1,968,828 47,683,403 47,683,403

85,540,916 3,915,094 98,534,046 98,534,046

160,863,358 6,544,076 177,418,979 177,418,979

242,001,530 9,180,237 262,262,359 262,262,359

317,353,726 11,263,769 340,846,892 340,846,892

SOURCE: MARAVEDIS-RETHINK RESEARCH SPONSORED BY IPASS

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TO DEPLOYMENT... AND BEYOND

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What are the analyst predictions for small cells,

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RR

DAS and Carrier WiFi deployments in the Americas?

SMALL CELLS IN-BUILDING SMALL CELLS TO GROW 192% CAGR OF 2018 (iGR)

118%

METROCELL SPENDING TO SEE

SMALL CELLS BACKHAUL

CAGR OVER 2013-2018 (iGR)

2013 = <9,000 SMALL CELL BACKHAUL CONNECTIONS

2014-2019:

Backhaul for Small Cell deployments in North America to grow

CAGR 166%

2018 = 600,000

(iGR)

Millimeter wave equipment market

to grow to $755 MILLION BY 2018 (Infonetics) 12 TMN MARKET UPDATE

BY 2019: $8 BILLION

(ABI Research)

40% OF OPERATORS expect to integrate Hotspot 2.0 into more than half their access points by the end of 2015

40%

all have launched or about to

DAS REBOOT

DAS REVENUE IN NORTH AMERICA GREW 19% year-over-year in 1H14

Units deployed...

58,000 2019 = 132,000 2014 =

Respondents have an average of around 32,000 ACCESS POINTS currently, growing to just over 44,000 BY 2015, representing 33% GROWTH over the next year

(CAGR 17.9%)

ACCESS POINTS 44K 32K

2014

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OVE R W E IC

I: IF

to be spent on carrier WiFi equipment

carrier WiFi hotspots in North America by 2018

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44 MILLION

2015

33% GROWTH

LATIN AMERICA