Chinese President Hu Jintao and French President Nicolas Sarkozy take part in formal signing ceremony for Alcatel-Lucent and Chinese mobile operators frame agreements for mobile networking solutions and services

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today formally signed a package of frame agreements with a combined value of up to Euro 750 million for mobile communications solutions and services with China Mobile and China Unicom, leading Chinese mobile service providers. Part of these agreements was previously announced.They were secured through Alcatel-Lucent’s flagship company in China, Alcatel Shanghai Bell, and French President Nicolas Sarkozy and Chinese President Hu Jintao took part in the formal signing ceremony held today in Beijing.

The solutions Alcatel-Lucent is providing are enabling China Mobile and China Unicom to dramatically expand the capacity and coverage of their mobile networks so that they can continue to meet the robust demand for mobile services in China.

Under the terms of the Euro 600 million agreement with China Mobile, Alcatel-Lucent is providing end-to-end mobile solutions supporting China Mobile’s extensive network expansion plans. The solution includes GSM/GPRS/EDGE radio and core networking equipment, mobile applications, IP routers and optical networking equipment. Alcatel-Lucent also is providing China Mobile with a TD-SCDMA solution being implemented in the operator’s trial network and will support services such as Video Streaming, WAP and Personal Ring Back Tone.

The agreement with China Unicom, valued at Euro 150 million, encompasses a range of industry-leading, end-to-end solutions including CDMA networking equipment, GSM/GPRS radio and core networking equipment, mobile applications, IP routers, optical networking equipment and related services to support China Unicom’s network deployment and expansion. In addition, the agreement includes the expansion and upgrade of China Unicom’s third-generation (3G) CDMA1xEVDO, a high-speed data network in Macau.

“China Mobile and Alcatel-Lucent have established a strong relationship through years of close cooperation,” said Wang Jianzhou, President of China Mobile Communications Corporation. “Alcatel-Lucent’s diverse portfolio and first-class service will enable us to deliver innovative and useful new services to our customers throughout China.”

“Alcatel-Lucent and China Unicom are in long-term cooperation partnership.” said Chang Xiaobing, Chairman of China United Telecommunications Corporation. “I believe the agreement we signed today will facilitate our business successes. ”


“We are delighted and proud that both China Mobile and China Unicom selected Alcatel-Lucent to play such a significant role in their network expansion projects and see it as a testament to the quality and innovation of our solutions,” said Frederic Rose, President of Alcatel-Lucent’s business in Europe, Middle East, Africa and Asiaand President of Alcatel Shanghai Bell. “Alcatel-Lucent has experienced a significant year in China with an increased market share in both fixed and mobile market sectors. We are committed to continue supporting our Chinese customers through our flagship company, Alcatel Shanghai Bell.”

These contracts further strengthen Alcatel-Lucent’s position as one of the leading mobile communications suppliers in the Chinese market and follow similar agreements Alcatel-Lucent signed with both operators in May to support the expansion of the their respective mobile communications networks.

Alcatel-Lucent is a leading player in the GSM/EDGE market -- with more than 170 customers in more than 90 countries – as well as the global leader in the development and deployment of third-generation (3G) networks, having deployed commercial 3G (UMTS/HSPA and CDMA/EV-DO) systems for more than 70 operators worldwide, and played a leading role in the introduction of 3G TD-SCDMA in China. And according to Ovum RHK, Alcatel-Lucent leads the worldwide optical networking market with a 23.3% market share at the end of 2006 and is No. 2 in the IP/MPLS Edge market.