JaberTech is a technology company focused on developing, integrating and deploying enabling
technologies into high-powered products. Its goal is to provide unique new solutions to today’s high
tech environment through creativity, innovation and design. To date, it has developed, acquired or has
available some of the world’s most powerful enabling technologies and has designed a methodology
and a well-defined plan to produce, in sequence, a series of products conceived for large market
opportunities. It has also developed strategies to not only develop these products, but to get them to
market through contracted manufacturers and external distribution channels. By doing so, it not only
intends to reach multiple markets but do so in a relatively short period of time.
Its most recent innovation lies within the Femtocell market. A Femtocells base station allows mobile
phone users to make calls inside their homes via their Internet broadband connection; specifically
WCDMA, LTE and WiMAX connections. The base station looks similar to a WiFi router used in homes to
connect a computer wirelessly to the Internet. It is a plug and play device that allows a mobile phone
subscriber to use their mobile phone to make voice and data calls via their broadband connection to
their mobile phone provider’s phone network. JaberTech has been able to develop a set of sophisticated
and already patented technologies which overcome today’s Femtocell challenges and takes advantage
of this billion dollar market opportunity.
Problem/Background
The massive growth of mobile phone usage has altered today’s customer lifestyle tremendously. With
the emergence of smart phones (mobile web) customers are not only using their mobile phones to make
calls but to also browse the internet, check their email and chat with friends while still demanding a
great voice quality, reliable service, and low prices. However, today’s mobile phone networks often
provide poor indoor coverage and expensive per-minute pricing. In fact, with the continued progress in
broadband VoIP offerings such as Vonage and Skype, Mobile Operators (MOs) are at a serious
disadvantage in the home especially when 50% of all calls and 70% of data traffic originates indoors.
Broadband Capacity Limitations
This new customer lifestyle has put a lot of pressure on the MOs’ bandwidth in the house and on the go;
Cisco estimates the global mobile broadband growth to be 108% compounded annually over the next
few years. Rysavy Research estimates that the average demand will exceed the current MO capacity in
2014.
Historically, MOs have fixed the capacity problem and increased their coverage by spending billions of
dollars on macro-cell based stations. Today MOs are not able to simply increase macro-cell stations due
to legal, environmental and budget restrictions. MOs are looking for new ways to improve their
coverage by adopting new technologies such as Micro-cell technologies, Femtocells and Distributed
Antennas.
Infrastructure Expenses Features
Femtocell: Consumer Installed wireless data access point inside homes, which backhauls data through a broadband gateway (DSL/Cable/Ethernet/WiMAX) over the internet to the cellular operator network.
Capex: Subsidized Femtocell hardware. Opex: a) Providing a scalable architecture to transport data over IP. B) Upgrading Femtocells to newer standards.
Benefits: a) Lower cost, better coverage and prolonged handset battery life from shrinking cell size. b) Capacity gain to home subscribers and c) Reduced subscriber churn. Shortcomings: a) Interference from nearby macro-cell and Femtocell transmission limits capacity and b) Increased strain on backhaul from data traffic may affect throughput.
Distributed Antennas: Operator installed spatially separated antenna elements (AEs) connected to a macro BS via dedicated fiber/microwave backhaul link.
Capex: AE & backhaul installations Opex: AE maintenance and backhaul connection
Benefits: a) Better coverage since users talks to nearby AE, b) Capacity gain from AEs. Shortcomings: a) Does not solve the indoor coverage problem, b) RF interference in the same bandwidth from nearby AEs will diminish capacity and c) Backhaul deployment costs may be considerable.
Microcells Operator: Installed cell towers, which improve coverage in urban areas with poor reception.
Capex: Installing new cell towers Opex: Electricity, site lease and backhaul.
Benefits: a) System capacity gain from smaller cell size, b) Complete operator control Shortcomings: a) Installation and maintenance of cell towers is prohibitively expensive, c) Does not completely solve indoor coverage problem.
Femtocell Technologies
Among the technologies being investigated by MOs to increase their capacity, Femtocells, which are
designed for deployment in subscriber homes, have been recently generating tremendous excitement
among MOs. Femtocells promise improved indoor coverage and increased throughput for mobile data
services while off-loading traffic from expensive macro radio access networks onto the low cost public
Internet. Research conducted by Signals Research Group found that “operators can use Femtocells to
efficiently manage rapidly growing mobile broadband usage while also making a healthy return on their
investment--in typical cases by more than ten times.” Moreover, Informa Telecoms & Media estimates
that Capex related to implementing Femtocell networks would cost the industry about $3.7 billion,
assuming that the Femtocell devices are not subsidized by users, compared to a $13.8 billion spend on
adding new macro-cells to handle the traffic capacity. Femtocell adoption will save the industry
approximately $10 billion in the next few years.
Market Opportunity
Femtocell technologies are currently gaining momentum and are becoming known as the best available
option for MOs. IDC analyst, Godfrey Chua, said "For the iPhone users (or any other smartphone) who
are really frustrated over being dropped all the time, the Femtocell may be the answer." The Femto
Forum estimated that about 60 carriers around the world are conducting trials of Femtocells however
there have only been nine commercial deployments.
According to Informa Telecoms and Media, “the number of Femtocell access points in the market is
expected to grow to 49 million units by 2014 with an estimated 114 million users accessing services
through mobile gateways.” The femtocell market opportunity, estimated to be as high as $22.5 billion by
2013, has caught the attention of incumbents and start-ups alike, and is now capturing a significant
amount of analyst and media attention as well.
Femtocell Challenges
The Femto Forum explained the low commercial deployment percentage of Femtocells to be a cause of
vendors and service providers not being to figure out the “technical problems that were bigger than
expected.” Deepak Kataria of Ericcson confirmed, “Like any new technology, Femtocells come with
issues that need to be resolved for them to become a successful, widely deployed technology.
Femtocells need to be scalable and integratable. They also must be robust enough to handle
interference and support synchronization. Finally, Femtocells must meet all regulatory requirements.”
Four main issues are hindering the wide adoption of Femtocells:
1) RF Interference: Minimizing Interference with Macro-cell network while keeping costs low
2) Seamless Network Integration with MO to easily switch between stations
3) QoS: Quality of Service in Femtocells needs to be as good as the Macro-cell network service
JaberTech
JaberTech, along with its strategic partners Axiocom and ADSNST, has overcome the hurdles and the
challenges of implementing Femtocell technologies. The patented technologies include:
- New Fast Fourier Transform (FTT): The largest mathematical tool used in the world and is key for
OFDM, a technique used to deploy the actual and future wireless communication systems,
wireless communications.
- Other breakthrough license products: Address Generator; One Iteration FFT; One frequency
detection and Prune FFT targeted for OFDM and Cognitive Radio.
- Interference Canceller Technologies
- Multi-use Detection – Axnet
- Multi-use Channel Estimator – Axcest
- MIMO Systems
- Acoustic noise Cancellation Technologies, which allows suppression of any background noise
and provides high quality of output speech.
These technologies increase base station coverage by 60% and increase the station’s capacity by a factor
of 4. This helps saves billions of dollars in infrastructure costs for MOs. The noise cancellation
technologies can be implemented in wireless telephony systems, set-top boxes, video conferencing
applications, VoIP solutions, voice recognition pre-processors and other voice related applications.
Other Patents by JaberTech include Wavelet Transform, Fuzzy Logic, and Neural Network patents. The
combination of the FTT, Noise Cancellation and Interference Canceller technologies, which have been
developed by Marwan Jaber and his partners are able to solve the three main challenges that the
Femtocell market faces. The patented technologies are able to reduce the RF Interferences and provide
a great service quality while being cost effective.
Marketing Strategy
JaberTech’s primary channels to market will be through OEMs, technology license agreements, and
select distributors. In order to create awareness in target markets, JaberTech will participate in key
technology tradeshows, institute limited advertising in focused technical trade publications, and
implement an aggressive public relations program with active involvement in speaking engagements at
major technology trade shows and conferences. The Company’s sales efforts will be focused toward
direct sales to senior executives and decision makers of targeted OEMs and Mobile Operators. Our sales
strategy is to focus upon an aggressive pricing model that assumed a minimal investment in
manufacturing and in mass adoption.
Management Team
Dr. Marwan Jaber
Dr. Marwan A. Jaber Over twelve years of progressive experience in Digital Signal Processing, Algorithms
Architectures and Explorations, Digital Filtering, Audio and Speech Processing, Low-Power and Real-Time
Systems, Communication Systems, Image Processing, Parallel Processing and Massively Parallel
Processing environment, Blind Equalization, Time-frequency Analysis, Array Signal Processing, Parallel
Computing and project management. Detailed work has included experience with methods of signal
processing including Fourier analysis (FFT, IFFT, DFT, Z-Transform), advanced digital and analog filtering,
linear de-convolution, and buried signal extraction.
Dr. Daniel Massicotte
Dr. Daniel Massicotte received the B.Sc.A. and M.Sc.A. degrees in electrical engineering and industrial
electronics in 1987 and 1990 respectively from the Université du Québec à Trois-Rivières (UQTR), PQ,
Canada. He obtained the Ph.D. degree in electrical engineering in 1995 at the École Polytechnique de
Montréal, PQ, Canada. In 1994, he joined the Department of Electrical and Computer Engineering,
Université du Québec à Trois-Rivières, where he is currently a Professor. He is currently Head of the
Laboratory of Signal and Systems Integration and Founder and Chief Technology Officer of Axiocom Inc.
Daniel Massicotte has acquired over twenty years of experience in the fields of advanced signal
processing and microelectronics, and an extensive knowledge of applications in telecommunication and
measurement systems. The quality of his work has been recognized time after time. He received the
Douglas R. Colton Medal for Research Excellence awarded by the Canadian Microelectronics
Corporation, the PMC-Sierra High Speed Networking and Communication Award and the Second place
at the Year 2000 Complex Multimedia/Telecom IP Design Contest from Euro-practice in 1997, 1999 and
2000 respectively. His research interests include advanced VLSI implementation and digital signal
processing for the communications and measurement problems for linear and nonlinear systems such as
blind and non-blind equalization, multiuser detection, channel estimation, signal reconstruction and De-
convolution, non-destructive evaluation, and control laws. He has proposed many methods based on
modern signal
Financial Projections
units $/unit Total
Phase One (Prototype)
Chief Engineers 2.00 125,000 250,000
Engineers - Design 6.00 80,000 480,000
Engineers - Software 8.00 80,000 640,000
Technicians 4.00 45,000 180,000
Equipments 1.00 450,000 430,000
Contracts - R&D and Designs
UQTR 1.00 150,000 150,000
Standard in Communication 1.00 150,000 150,000
Test & Measure 1.00 75,000 75,000
Fabrications 1.00 125,000 125,000
Phase One Sub-Total 2,480,000
Phase Two (Deployment and Maintenance)
Engineering Team 10.00 80,000 800,000
Administration 3.00 250,000 750,000
Marketing & Promotion 1,000,000 1,000,000
Buying existing Patents 5,000,000
Phase Two Sub-Total 7,550,000
Phase Three (Acquisitions)
Buying out Existing Shareholders 5,000,000
Acquisition of Axiocom (first tranch) 1.00 2,000,000 2,000,000
Acquisition of JABERTECH 1.00 3,000,000 3,000,000
Phase Three Sub-Total 10,000,000
Total Expenses 20,030,000
2010 2011 2012 2013 2014
Revenues
Femtocell market size (# of devices) 1,000,000 5,000,000 20,000,000 32,000,000 49,000,000
Percent of Femto Cell Market 0.5% 2.0% 4.0% 7.0% 10.0%
JaberTech Femtocell devices sold 5,000 100,000 800,000 2,240,000 4,900,000
Femtocell Average Unit Price 100 $ 80 $ 60 $ 50 $ 45 $
Total Revenue 500,000 $ 8,000,000 $ 48,000,000 $ 112,000,000 $ 220,500,000 $