Alcatel and Qtel turn up 3G commercial services in Qatar

Paris, July 20, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) and Qatar Telecom (Qtel), the incumbent operator and the exclusive telecommunications provider in Qatar, announced today the official launch of the first service to be provided over Qtel’s new third generation mobile network. Qtel’s 3G Video Calling service is the first in a range of services that will be rolled out offering customers innovative and multimedia high speed 3G/UMTS services, including video conferencing, high speed data or video streaming.

To ensure the expansion of the latest telecom services to end-users, Qtel is offering the Video Calling service for postpaid and prepaid customers with no connection or monthly fees.

“Alcatel interactive mobile 3G solutions brings a vast range of new capabilities to mobile phones, including Video Calling,” said Dr. Nasser Marafih, CEO of Qtel. “We are confident that both Alcatel 3G network infrastructure and mobile services solutions will enable us, in the long run, to provide users with personalized and interactive content, such as video MMS service, video streaming or live broadcast TV. This ”made for mobile“ TV channels solutions will boost the broadcasting of the 15th Asian Games, the second largest sporting event after the Olympics Games, taking place in Doha this December.”

“The successful delivery & commissioning of the 3G network in a relatively short time frame, providing high quality 3G services reflects the close and long-standing partnership between our two companies,” said Pierre-Alain Cadillon, Alcatel Country Senior Officer of Qatar. “In the very near future, a software upgrade is foreseen for the HSDPA technology. It will allow Qtel to bring significant added value over 3G/UMTS, and to stay ahead of customer demand and satisfaction.”

With this UMTS contract along with all related video communication services, Alcatel, a long-term GSM/GPRS infrastructure solutions supplier, further cements its role in the development of Qtel networks in Qatar and reinforces its leadership in the region as a 3G provider.

About Qatar Telecom (Qtel)
Qatar Telecom (Qtel) is the exclusive telecommunications provider in Qatar. Its principal activities include local and international telephone, mobile, Internet, data and cable television services. Qtel also provides mobile telephone services in Oman via Nawras, a joint venture with TDC and Omani partners. Qtel is a winner of the 2005 Gulf Excellence Award and listed on the Doha Securities Market and on other stock exchanges in the Gulf Cooperation Council (GCC). For more about Qtel: http://www.qtel.com.qa

About Qatar and the 15th Asian Games Doha 2006
The 15th Asian Games will be held from December 1-15, 2006 in Doha (Qatar). Doha is the first city in its region and only the second in West Asia since Iran in 1974 to hold this prestigious international event. While Qatar has established itself as a hub for a wide range of events, conferences and tournaments, nothing has yet compared to the enormity of the Asian Games.
For the Doha Asian Games in 2006, more than 30 sports facilities will accommodate the athletes’ requirements - 14 multipurpose stadiums are already scattered round Doha and are being refurbished to meet the demand. Since the first Asian Games took place in New Delhi in 1951 and welcomed 11 countries participating in just 6 sports, it has now grown 55 years later to an event expecting 45 countries that will participate in 40 competitive sports. As the second largest sports event in the world after the Olympic Games, the event will put Qatar on the international sports map.

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. For more information, visit Alcatel on the Internet: http://www.alcatel.com

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Mark Burnworth

Corporate Media Relations

Alcatel

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