Alcatel to build first WIMAX network in Estonia with Elion, a TeliaSonera’s subsidiary

Paris, October 2, 2006 - Alcatel (Paris : CGEP.PA and NYSE : ALA) today announced that it has been selected by Elion Enterprises Ltd., part of TeliaSonera leading telecommunications company in the Nordic and Baltic region, to deploy a commercial broadband wireless access network in Estonia. Initial deployment has been completed in Tallinn and the surrounding area and the system will be in commercial operation in a few weeks time.

This WiMAX network will enable Elion to provide additional users with broadband access to high speed Internet and data transmissions with a guaranteed level of quality.

Under the terms of the agreement, Alcatel will supply an end-to-end WiMAX solution including base stations and CPE (Customer Premises Equipment).

“This WiMAX network will support our goal of bridging the digital divide through affordable broadband wireless Internet services to users that are currently underserved, ” said Rain Rebane, director, Business Planning Division of Telenetworks, Elion. “Alcatel is a world leader in broadband access and its global strength and unique approach provide us with a turnkey offering for VoIP and data services for both residential and corporate users. Alcatel is the safe partner for future-proof WiMAX business today.”

“We are committed to deploying Elion’s WiMAX network and to enabling access to a range of voice, Internet, data and value-added services,” added Lars Boilesen, President of Alcatel activities in the Nordic and Baltic region. “Alcatel’s WiMAX solution will optimize Elion’s broadband service delivery, strengthening our current and future regional market position.”

WiMAX is a new broadband wireless access technology that enables connectivity through wireless networks for fixed, nomadic or mobile use in urban, suburban and rural areas. The technology offers a cost-effective broadband access alternative where DSL is unavailable for technical or economical reasons, or a last-mile alternative to unbundling for operators who are offering a combination of voice and broadband access offers to the next generation of wireless devices.

About Elion
Elion is the largest telecommunications and IT provider in Estonia. It is owned by AS Eesti Telekom, listed at the stock exchanges of Tallinn and London (OMX:ETLAT/LSE:EETD). Elion provides comprehensive household and business communication services - from telephone calls to integrated business solutions, from the sale of handsets and computers to the provision of broadband, the installation and maintenance of large IT systems. In Estonia Elion is the market leader in fixed network calls, in Internet subscriptions and data communication solutions, and it has made a powerful entry into the IT and digital television market. Elion owns Estonia’s most popular Internet search engine and subject catalogue NETI. In 2005 the consolidated revenue of Elion Group were 2.588 billion kroons, and the consolidated net profit was 385 million kroons. In 2005 Elion invested 370 million kroons in the development of telecommunications. At the end of 2005 Elion Group employed the staff of 1673.

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

Contact press@alcatel.com

Contact Information

Robin Karvo

Corporate Media Relations

Alcatel

Contact via E-mail