Alcatel introduces industry’s most compact residential network terminal for GPON FTTH services

Paris, October 5, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced the launch of an ultra-compact Gigabit passive optical network (GPON) terminal immediately available to service providers worldwide. This new optical network terminal (ONT) extends Alcatel’s leadership in GPON by adding to an ever-increasing portfolio of ONT models.

The new model, which fits in the palm of a hand and is 50% smaller than other GPON ONTs on the market, can be mounted inside the home, and is thus ideal for operators who need to provision triple play services into apartments or housing units with limited space.

It offers operators the ability to deliver full GPON functionality – up to 200Mb/s of bandwidth to end users - in a cost effective package that complies with the latest Full Service Access Network (FSAN) Group’s recommendations for GPON. It comes with two 10/100 Ethernet ports that support a range of IP-based services, including high-speed Internet, Internet Protocol TV (IPTV) and Voice Over Internet Protocol (VOIP).

“This new ONT adds to an already comprehensive line of configurations for possible network applications such as single family homes, multi-dwelling homes, businesses or indoor and outdoor installations,” commented Dirk Van den Berghen, president of Alcatel’s access activities. “In fact, we will be shipping this new product to fulfil orders in Europe by year end.”

As the global leader in broadband access, Alcatel is the first vendor to deliver a Full Service Access Network (FSAN) Group compliant GPON system, and is currently engaged in more than 15 GPON projects worldwide. The new ONT is part of Alcatel’s industry-leading Alcatel 7342 Intelligent Services Access Manager (ISAM) Fiber-to-the-User (FTTU) access portfolio.

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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