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Mostelecom, leading Russian cable television provider, selected Alcatel-Lucent solution to expand capabilities of its multiservice network


Alcatel-Lucent’s innovative converged IP/Optical backbone solution deployed for the first time in Russia

Moscow - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that Open Joint Stock Company “Mostelecom” (Mostelecom), an affiliate of NTK holding - a leading Russian cable broadcast television provider with more than three million subscribers in Moscow - has become the first company in Russia to select Alcatel-Lucent’s innovative converged IP/Optical backbone solution to cost effectively boost its network performance and offer a higher quality of experience to end users.

Alcatel-Lucent’s Converged Backbone Transformation (CBT) solution allows service providers to cope with the explosive growth of video and other bandwidth-intensive applications such as video or file sharing, offer reliable high-speed Internet access over the Mostelecom network to the subscribers of NTK’s consumer brand OnLime, and facilitate the provisioning of advanced multimedia services such as interactive TV and video on demand.

By optimizing its transport network with the Alcatel-Lucent’s solution,Mostelecom can also reduce its investments costs, address the rapid growth in traffic, and substantially cut operational and maintenance costs.

“The broadband market in Moscow is highly competitive. We want to keep technical excellence while actively promoting our new solutions and continuously decreasing the cost per bit to stay ahead of the competition, ensure further growth of subscribers who get multimedia services from NTK group operators and also to attract new customers,” said Alexander Tseitlin, CEO Mostelecom. “Alcatel-Lucent really gave us everything we needed – bringing optical and IP transformation experience to help us increase capabilities of our network without impacting our day to day operations.”

“The CBT offering is a key pillar of our High Leverage Network™ architecture, which ultimately provides Mostelecom with the highest capacity, lowest cost per bit delivery but with the intelligence necessary to offer a range of revenue generating services to their customers,” said Adolfo Hernandez, President of Alcatel-Lucent EMEA. “By laying this groundwork, Mostelecom is moving towards a more profitable business model – one that is also flexible enough to handle the data surge we are already experiencing and that we expect to only grow.”

About Alcatel-Lucent’ solution
Leveraging their existing investment in the Alcatel-Lucent Service Router portfolio, Mostelecom deployed new 7750 Service Routers (SR) in the core as well as 1830 PSS DWDM equipment. Seamlessly augmenting the existing 7450 Ethernet Service Switch (ESS) aggregation platforms currently deployed in the network enabled a cost-effective and operationally efficient transition as the network capacity was expanded by an order of magnitude. To compliment this solution, Alcatel-Lucent provided a range of professional services including design, installation and commissioning.

Alcatel-Lucent’s Converged Backbone Transformation solution features tight integration across the IP and optical domains, enabling a wide range of traffic ‘grooming’ options that increase transport network efficiency, enabling traffic forwarding at the most economical layer in the network – all while providing integrated network management that streamlines operations. For the service provider, this results in higher efficiency, greater resiliency, and lower complexity – culminating in CapEx cost savings of at least 30%, in addition to savings in power, space and operational complexity.

As part of the agreement, Alcatel-Lucent provides Mostelecom with its 1830 Photonic Service Switches (PSS) that offer the industry’s first photonic switching solution for flexible and automated WDM networking and cost effectively enhance the transport level of Mostelecom network. Alcatel-Lucent has also introduced its 7750 Service Router at the core of the network to rearrange the IP/MPLS network architecture from ring to full mash and thus significantly increases the network flexibility and prepares it for future capacity growth allowing Mostelecom to optimize its capital expenses (CAPEX).

About Mostelecom
Open Joint-Stock Society external linkOAO Mostelecom was set up in May 1997 by reorganizing the state-owned enterprise “Moscow Cable Television” established in June 1994 by decree of the Government of Moscow. From 2005 OAO Mostelecom is part of the “National Cable Networks” (NKS) holding (the majority of stock is owned by NTK - ZAO National Media Group). OAO Mostelecom has the status of the city-wide organization authorized by the Government of Moscow to operate, build and develop municipal cable TV networks. In July 2006 OAOMostelecomstartedalarge-scale process of modernization and construction of new broadband multi-service networks, including cable TV, on the basis of fiber-optical technologies. Today“NationalCableNetworks” (NKS) usesMostelecom’snetworkstooffer its subscribers enhanced social TV services, as well as to promote commercial Internet access and digital TV under the external linkOnLime Telecomfort provider brand in most of the Moscow’s districts.

About Alcatel-Lucent’s High Leverage Network™
The Alcatel-Lucent High Leverage Network™ (HLN) architecture addresses the dual challenges of simultaneously scaling and managing network capacity to meet increasing bandwidth demand while delivering differentiated, revenue generating services. It achieves this by delivering scalable bandwidth at the lowest cost per bit and by embedding intelligence in the network to enable dynamic service creation and delivery. The foundation for the Alcatel-Lucent Application Enablement vision, the HLN architecture collapses multiple complex costly overlay networks into a simpler, fully optimized network that leverages technical innovations and embraces existing environments.

About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted transformation partner of service providers, enterprises, strategic industries such as defense, energy, healthcare, transportation, and governments worldwide, providing solutions to deliver voice, data and video communication services to end-users. A leader in fixed, mobile and converged broadband networking, IP and optics technologies, applications and services, Alcatel-Lucent leverages the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries and the most experienced global services organization in the industry, Alcatel-Lucent is a local partner with a global reach. Alcatel-Lucent achieved revenues of Euro 15.2 billion in 2009 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet:, read the latest posts on the Alcatel-Lucent blog and follow us on Twitter: external link


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