Alcatel extends reach and markets for IP portfolio with introduction of Alcatel 7710 Service Router

Paris, March 20, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced availability of the Alcatel 7710 Service Router, a compact, optimized service routing platform with a throughput of 12 Gb/s. With a compact form factor, variety of lower-speed interfaces, and purpose-built high availability, the Alcatel 7710 SR is targeted at mobile operators, service providers with smaller points of presence (POPs) and emerging markets. The 7710 SR incorporates all of the strengths of the Alcatel 7750 Service Router portfolio, including the high availability, service richness, and Quality of Service (QoS) features that have led to more than 100 customers in 50 countries selecting the Alcatel IP portfolio.

The addition of the 7710 SR to Alcatel’s portfolio illustrates its continuing commitment to IP. Alcatel has a history of innovation in IP, including the development of the world’s first service router and the first implementation of high availability on a router; it is this combination that enables IP network transformation to support voice, video and data services in an always-on, highly resilient manner. As well, Alcatel is a leader in the delivery of integrated IP/MPLS network and service management that makes provisioning and proactive troubleshooting a point-and-click exercise.

Telecom New Zealand International (TNZI) has chosen to deploy the 7710 SR in its international POPs (Point of Presence), including the United States and the United Kingdom, to carry its international traffic.

“TNZI selected the 7710 SR to complement the base of 7750 SR’s for its international network because it offered us a scaled-down footprint, interface density and interface variety to meet our needs whilst retaining the feature parity and resiliency of the 7750 SR,” said Geoff Burrell, CTO of TNZI. "Alcatel provides a solution spanning service routers, service and network management applications, design and build expertise, and local support.

“The introduction of the 7710 SR reflects the strengthening and broadening of our IP portfolio,” said Basil Alwan, president of Alcatel’s IP activities. “It’s also a continuing validation that service routing is the most important new phase in the IP industry. Extending all the performance and QoS features of our service routers into a scaled down form factor gives operators the service richness, velocity and flexibility that have made Alcatel’s IP family so successful already.”

Worldwide, the Alcatel IP portfolio has been selected by more than 100 service providers, including AT&T (formerly SBC) as part of its Project Lightspeed which will provide broadband access for up to 18 million households in the U.S. as well as for network transformation projects at BT (21CN), Deutsche Telekom and China Telecom. In the fourth quarter of 2005, Alcatel held second place worldwide for IP edge aggregation with a market share of 25.8 percent, according to Synergy Research Group.

About Alcatel
Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries.

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