Kenya’s Celtel selects Alcatel-Lucent’s latest generation of GSM/EDGE radio equipment to expand and enhance its wireless network

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has been selected by Celtel Kenya Ltd to expand and enhance its wireless network with the latest generation of Alcatel-Lucent’s GSM/EDGE* radio equipment.

This multi-million Euro contract is the result of a complete network evolution program designed by Celtel Kenya to further improve its network quality and extend national radio coverage in the country. Once the project is completed, Celtel will be able to offer advanced mobile services to more than 80% of the population through a network that will cover the majority of the Kenyan territory.

“The state-of-the-art communications technology supplied by Alcatel-Lucent – which features some of the latest and most advanced capabilities on the market - will give Kenyans wider access to useful new mobile voice and data services and will support business and economic growth in the country,” said David Murray of Celtel Kenya. “By upgrading and expanding our network, Celtel will be able to offer a broad range of reliable services throughout East Africa, making it one of the leading international operators serving the people and businesses of this area.”

Under the agreement, Alcatel-Lucent will supply its field ATCA-based Base Station Controllers (BSC) Evolution, founded on the industry’s most advanced hardware architecture. With its compact new design and high performance, this platform will leverage Celtel’s existing radio access network investments while reducing operating expenses. Additionally, Alcatel-Lucent will supply its Twin TRX radio transceiver, which doubles base station capacity to support the requirements of urban environments and enables wider coverage in rural environments, while at the same time reducing power consumption by up to 30 percent. The Twin TRX is compatible with equipment already deployed in Celtel’s network, enabling smooth expansions in densely populated urban areas without having to add new sites. Alcatel-Lucent also will provide network maintenance services to ensure optimum performance of the network in the coming years.

“This agreement further confirms the confidence of Celtel Kenya in Alcatel-Lucent’s cutting-edge technology and field support capabilities, and highlights the strong relationship our companies have maintained since the establishment of the network,” said Olivier Picard, President for Europe and South. “This new contract reinforces Alcatel-Lucent’s worldwide leadership in mobile broadband and its leading position on the African market. It further demonstrates Alcatel-Lucent’s commitment to deliver the most advanced and cost-effective GSM/EDGE solution for network expansion.”

In 2007 Alcatel-Lucent introduced a completely renovated GSM/EDGE family of products designed to satisfy two formerly conflicting demands: the need to address the ever-growing need for network capacity resulting from the explosion of voice and data traffic in urban areas, and the need to expand coverage in rural environments, primarily for lower income customers. To meet these needs, Alcatel-Lucent’s evolutionary platforms have been designed to dramatically reduce capital and operating expenses for operators, while protecting their investments through the ability to support more advanced, emerging technologies in the future. Alcatel-Lucent is a leading player in the GSM/EDGE market with more than 170 customers in more than 90 countries.

* GSM – Global System for Mobile communications

* EDGE – Enhanced Data GSM Environment