China Telecom turns to Alcatel-Lucent to bring sophisticated broadband services to millions

Paris and Shanghai - This year more than 26 million people in China will gain access to blazingly fast broadband services thanks to a new agreement between China Telecom and Alcatel-Lucent (Euronext and NYSE: ALU),the leading network technology group.

Under the agreement -- secured through Alcatel-Lucent’s flagship company in China, Alcatel-Lucent Shanghai Bell – the company is helping China Telecom implement an ambitious plan to connect many un-served or under-served areas of the country by putting in place a state-of-the-art fiber optic broadband access network. The expansive effort – called the “Broadband China, Fibre Cities” project - will involve the deployment of a mix of passive optical networking (PON) technologies connecting homes, office buildings and remote “nodes” (which can then distribute the broadband signals to multiple locations over existing copper wires).

Wei Leping, Chairman of China Telecom Science & Technology Committee, said: “China Telecom launched ‘Broadband China, Fibre Cities’ strategy at the beginning of 2011, which aims to realize optical network coverage in all the cities in three years. By 2015, China Telecom will achieve a FTTH coverage of 100 million households and 30 million FTTH subscribers. Leveraging Alcatel-Lucent Shanghai Bell’s leading broadband access portfolio and Alcatel-Lucent’s enriched deployment experience for other operators worldwide, we are able to provide the urban users the experience of web surfing at the speed of light.”

Rajeev Singh-Molares, President of Alcatel-Lucent’s activities in the Asia-Pacific Region, said: “This project represents another major milestone in the rapid modernization of China’s telecom landscape, and highlights the deepening relationship between Alcatel-Lucent and China Telecom, one of the worlds’ largest and most dynamic service providers.” He added, “It also further demonstrates the very strong position Alcatel-Lucent is taking in the broadband market in China overall.”

Following the deployment, China Telecom will be able to offer subscribers a range of consumer and business services including IPTV, video on demand, voice over IP (VoIP) and more at speeds of up to 50 Megabits per second, all with guaranteed quality of service (QoS) levels. This project is a central element of China Telecom’s plan to extend its FTTH coverage to 100 million users by the end of China’s 12th Five-Year Plan (2011-2015).

Alcatel-Lucent will supply its industry-leading Intelligent Services Access Manager (ISAM) product family, which supports GPON, EPON and DSL technologies and enables fiber-to-the-home (FTTH), fiber-to-the-node (FTTN) and fiber-to-the-building (FTTB) deployment models. The ISAM family is a cornerstone of Alcatel-Lucent’s High Leverage NetworkTM architecture.

Alcatel-Lucent is the worldwide leader in fixed broadband access, supporting the largest mass deployments of video, voice and data services. Today, one out of three fixed broadband subscribers around the world is served through an access network provided by Alcatel-Lucent. Alcatel-Lucent is involved in over 100 FTTH projects worldwide.

About Alcatel-Lucent (Euronext Paris and NYSE: ALU)

The long-trusted partner of service providers, enterprises, strategic industries and governments around the world, Alcatel-Lucent is a leader in mobile, fixed, IP and Optics technologies, and a pioneer in applications and services. Alcatel-Lucent includes Bell Labs, one of the world’s foremost centres of research and innovation in communications technology.

With operations in more than 130 countries and one of the most experienced global services organizations in the industry, Alcatel-Lucent is a local partner with global reach.

The Company achieved revenues of Euro 16 billion in 2010 and is incorporated in France and headquartered in Paris.

For more information, visit Alcatel-Lucent on: http://www.alcatel-lucent.com, read the latest posts on the Alcatel-Lucent blog http://www.alcatel-lucent.com/blog and follow the Company on Twitter: http://twitter.com/Alcatel_Lucent.