Canada’s MTS Allstream selects Alcatel-Lucent for next generation converged information, communications and entertainment service

MTS Allstream is 50th customer of Alcatel-Lucent’s Triple Play Service Delivery Architecture

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has signed a multi-year agreement with MTS Allstream, a wholly owned subsidiary of Manitoba Telecom Services Inc. and one of Canada’s leading national communication solutions providers, for its upcoming Internet Protocol television (IPTV) deployment. The service will be based on Alcatel-Lucent’s industry-leading Triple Play Service Delivery Architecture (TPSDA) and Microsoft Mediaroom IPTV and multimedia platform.MTS Allstream currently has the largest installed base of telco digital TV subscribers in Canada and was one of the first providers in the world to launch this type of service. This next-generation deployment will support an increased subscriber base and will allow MTS Allstream to launch into new markets.

Alcatel-Lucent’s solution will also allow MTS Allstream to offer a full suite of converged services over a single IP/MPLS infrastructure with full quality of service (QoS) enabling enhanced services such as VoIP, T-Commerce and other interactive and blended services.The Microsoft Mediaroom platform will enable MTS Allstream to offerbroadcast TV and video on demand (VoD) with content featuring high definition (HD)-quality picture resolution. MTS Allstream’s IPTV offering will also provide an enhanced user experience by enabling user-friendly features like instant channel change, multiple picture-in-picture and personal video recorder (PVR) functionality (such as one-touch recording and pausing live TV).

“This new platform is the logical evolution of our existing MTS TV service, and allows MTS Allstream to continue its success as Manitoba’s telecommunications provider of choice whether it’s local service, high-speed Internet, television or wireless,” said Kelvin Shepherd, President Consumer Market division, MTS Allstream. “By leveraging the network investments we have made over the past several years, we will be one of the first in North America to deploy Microsoft Mediaroom. Together with Alcatel-Lucent’s TPSDA architecture, the new platform will reinforce the success of our bundling strategy and the competitive strength of our business and allow us to continue a cost-effective service improvement and expansion.”

“As the world leader in both IPTV and Mobile TV deployment, we are bringing our real-world experience and knowledge to help MTS Allstream increase the value of their subscriber offerings with more sophisticated digital communications and entertainment services,” said Alex Giosa, president of Alcatel-Lucent in Canada “We also support MTS Allstream’s time-to-market objectives by implementing a secure and reliable infrastructure capable of delivering high-end multimedia services.”

Under the agreement, Alcatel-Lucent will provide its TPSDA architecture and will be the end-to-end network integrator. The solution includes an IP/MPLS network based on the 7750 Service Router (SR) and a broadband access network based on the 7330 Intelligent Services Access Manager Fiber-to-the-Node (ISAM FTTN). Also included is the Alcatel-Lucent 5750 Subscriber Services Controller, a flexible, modular and pre-integrated subscriber and policy management, the 5620 Service Aware Manager, a single management platform offering element, network and service management, the 5526 Access Management System for element management. Alcatel-Lucent’s solution also integrates the Microsoft Mediaroom platform for TV service delivery.

In addition, Alcatel-Lucent will provide the design, testing, integration, deployment and maintenance. Alcatel-Lucent’s complete services network integration brings together the network infrastructure, software platform and integrations skill sets required to deliver a superior user experience to MTS Allstream customers. The solution leverages Alcatel-Lucent’s IP Transformation Centers (IPTCs) resources encompassing network, service platforms and OSS systems.

Alcatel-Lucent is the leader in end-to end-triple play networks, currently deploying its TPSDA with 50 operators worldwide, now including MTS Allstream. Alcatel-Lucent is also the world leader in both IPTV and Mobile TV, having already enabled TV, video and music services for more than 140 fixed and mobile service providers around the world.



About MTS Allstream
MTS Allstream Inc. is a wholly owned subsidiary of Manitoba Telecom Services Inc., and is one of Canada’s leading national communication solutions providers, delivering innovative products and services through theEnterpriseSolutions and Consumer Markets divisions. TheEnterpriseSolutions division, which operates under the Allstream brand nationally and under the MTS brand inManitoba, is a leading competitor in the national business and wholesale markets. This division offers customers a portfolio of solutions tailored to the needs of medium and large businesses looking for success in a world of rapidly evolving technology – Internet protocol-based communications, unified communications, voice and data connectivity services. The Consumer Markets division leads every telecommunications market segment in Manitoba, delivering a full suite of next generation wireless, high-speed Internet and data, digital television and wireline voice services under the MTS brand, as well as small business services across Canada under the Allstream brand, and security and alarm monitoring services through AAA Alarm Systems Ltd., an affiliate of MTS Allstream which also operates in other western provinces. MTS Allstream’s extensive national broadband fibre optic network spans more than 24,300 kilometres, and provides international connections through strategic alliances and interconnection agreements with other international service providers. Manitoba Telecom Services Inc.’s common shares are listed on TheTorontoStock Exchange (trading symbol: MBT). For more information, please visit: external linkwww.mtsallstream.com.



About Alcatel-Lucent’s Triple Play Service Delivery Architecture (TPSDA)

Alcatel-Lucent’s TPSDA, the widely deployed blueprint architecture for triple play, enables operators to accelerate their IP network transformation to deliver a full range of personalized multimedia services combining voice, data and video. TPSDA provides a reliable and scalable IP network foundation that leverages Alcatel-Lucent’s industry-leading broadband access, optics, carrier-Ethernet and IP technologies and couples them with robust services, subscriber and network management. TPSDA is further supported by a comprehensive suite of design, deployment and integration services.

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 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 adjusted proforma revenues of Euro 18.3 billion in 2006 and is incorporated in France, with executive offices located in Paris. [All figures exclude impact of activities transferred to Thales]. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com

Contact the Alcatel-Lucent Press Office: press@alcatel-lucent.com