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Alcatel-Lucent selected by Mostelecom, Russia’s largest cable operator for IP network transformation


Paris, February 2, 2006 – Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has been selected by JSC Mostelecom, the largest Russian cable television operator with more than three million subscribers and 90 percent of the market, to deploy a new IP-based network that will enable the operator to introduce triple play and business services across the city of Moscow and extend its subscriber reach. The project will be implemented in several stages with the first phase scheduled for launch in the first quarter 2007.
Mostelecom will migrate to an integrated, service-oriented and flexible IP/MPLS solution from Alcatel-Lucent that will transform its existing cable TV network. The Alcatel-Lucent solution provides higher bandwidth capacity per end-user and differentiated quality of service, both of which are critical for the services Mostelecom intends to introduce, including high-speed Internet and virtual private networks (VPNs) immediately, and video on demand, personal TV and online gaming in the future. In addition, this project will allow Mostelecom to increase the quality of existing cable TV channels and broaden its accessibility for subscribers enabling the operator to provide a uniform package of TV channels across its full customer base.
“We see a clear trend toward innovative triple play and IPTV services in Russia, particularly in Moscow,” said Anton Osipchuk, general director JSC Mostelecom. “We will leverage Alcatel-Lucent’s innovative IP portfolio and experience in triple play deployments to provide our existing customers with a wider variety of new and higher quality multimedia services, and to address new markets to strengthen our competitive position in Russia.“
“Mostelecom’s network transformation will enable them to offer a wide range of advanced, interactive services to anticipate demand from its large customer base,” Basil Alwan, President of Alcatel-Lucent’s IP activities. “Alcatel-Lucent’s leadership in large IP network transformation projects, combined with our expertise in triple play and business service delivery will allow Mostelecom to introduce the highest quality new services quickly and seamlessly.”
Alcatel-Lucent will deploy its turnkey, end-to-end IP solution including the industry leading Alcatel-Lucent 7750 Service Router (SR), Alcatel-Lucent 7450 Ethernet Service Switch (ESS) and Alcatel-Lucent 5620 Service Aware Manager (SAM). Alcatel-Lucent will also deliver the Alcatel-Lucent 5750 Subscriber Services Controller (SSC), a comprehensive policy management solution that will enable Mostelecom to centrally manage its subscribers and services.

About Mostelecom
Joint Stock Company “Mostelecom” (OAO 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 holding “National Cable Networks” (NKS) owned by Nafta Moscow. Shareholders of OAO Mostelecom are Nafta Moscow and the Government of Moscow. The company employs over 700 people. 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. The company provides its services to almost 3 million subscribers in Moscow. OAO Mostelecom delivers TV signals through coaxial and fiber-coaxial (hybrid) cable TV networks. At present OAO Mostelecom offers up to 19 TV channels. From July 2006, OAO Mostelecom began modernizing and upgrading its cable networks. Moreover, the company is building new broadband cable TV networks based on fiber technologies in some districts of Moscow. The company expects to complete the program in 2009. As a result, all subscribers will get access to advanced telecommunications services. external link

About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end-users. As a leader in fixed, mobile and converged broadband networking, IP technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at home, at work and on the move. With 79,000 employees and operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry, and one of the largest research, technology and innovation organizations in the telecommunications industry. Alcatel-Lucent achieved proforma combined revenues of Euro 18.6 billion in 2005, and is incorporated in France, with executive offices located in Paris. [All figures exclude impact of activities to be transferred to Thales]. For more information, visit Alcatel-Lucent on the Internet:

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