Packet One (P1) appoints Alcatel-Lucent to integrate & deploy one of the world’s first and largest WiMAX networks in the 2.3 GHZ spectrum band

USD71 million contract highlights P1’s leadership in the commercial introduction of WiMAX 802.16e wireless broadband technology in South East Asia

Paris and Kuala Lumpur, – Packet One Networks (Malaysia) Sdn Bhd (P1) has selected Alcatel-Lucent (Euronext and NYSE: ALU) to deploy and manage one of the world’s first large-scale commercial WiMAX networks to date in the 2.3 gigahertz (GHz) spectrum band, a deal valued at USD71 million for Phase 1 of deployment. This project highlights P1’s preeminent position in the commercial introduction of WiMAX 802.16e technology and helps establish Malaysia as one of Asia-Pacific’s wireless broadband leaders.

The contract was signed today at a ceremony witnessed by YB Dato’ Sri Dr Lim Keng Yaik, Minister of Energy, Water and Communications. Under the agreement, Alcatel-Lucent will supply P1, a subsidiary of Green Packet Berhad and WiMAX license-holder, with a complete, turn-key, end-to-end integrated WiMAX wireless broadband solution, including base stations, wireless access controllers, and an operation and maintenance center. Alcatel-Lucent also will be responsible for designing, supplying, constructing, installing, testing, commissioning, integrating, optimizing and maintaining P1’s WiMAX network.

Deployment is already underway in Klang Valley, Penang and Johor and will expand rapidly throughout West Malaysia. P1 plans to provide WiMAX coverage for 25 percent of the population in Malaysia (6.5 million people) by the end of 2008 and 40 percent of the population in Malaysia (10 million people) by the end of 2010. P1 expects to provide WiMAX coverage to 60 percent of the nation’s population - including urban, suburban and rural areas - within five years.

Speaking at the signing ceremony, P1’s CEO Michael Lai said, “The advent of wireless broadband has revolutionized communication and WiMAX is set to change the broadband landscape even further, making the Internet mobile and more personal. Our customers will soon have access to advanced services such as voice over IP (VoIP), high-speed Internet access and other data services instantly and while on the go using WiMAX-enabled devices without being tied down by wires.

“We are convinced that WiMAX, which is an all-IP solution, has the right DNA - that is device, network and application - for a successful platform,” Lai added. “We selected Alcatel-Lucent for this project because we are confident that they will deliver seamless wireless communications network that is poised to deliver fresh new services, improved applications and compelling content. There is strong synergy between both companies and more importantly coherence in our strategy and vision for WiMAX. In addition, Alcatel-Lucent also possesses strong technological competency, capability in the provision of end-to-end solutions for both wireless and fixed broadband networks, local presence, and proven track record as a leader in the development of WiMAX technology.”

“P1 will serve as an important showcase in Southeast Asia for WiMAX Rev-e’s readiness to support a vibrant business,” said Frederic Rose, President of Alcatel-Lucent’s business in Europe, Africa and Asia. “We’ve demonstrated the maturity of our WiMAX solution worldwide, and the terminal ecosystem is now really taking off – P1 being a ready and capable organization stands to benefit from that.”

The new WiMAX 2.3Ghz service will facilitate significantly faster wireless communications and provide a strong foundation to support the further development and growth of information and communications technology in Malaysia. It also supports the government’s National Broadband Plan to foster economic progress through the establishment of a knowledge-based economy.

Dato’ Sri Dr Lim Keng Yaik, Minister of Energy, Water and Communications, expressed delight that P1 is leading the pack by becoming one of the first to commercially deploy mobile WiMAX in the 2.3GHz band in Asia-Pacific and to establish one of the world’s largest mobile WiMAX 2.3Ghz network. “With the solid foundation established today by P1 together with Alcatel-Lucent, Malaysia’s vision to offer the best communications and wireless broadband infrastructure is now within our grasp.”

P1 is the first out of the four Malaysian WiMAX 2.3Ghz license-holders to deliver on its commitment to deploy WiMAX in an effort to help the Malaysian government realize its aspiration to enrich the lives of Malaysians and bridge digital divide.

With more than 70 pilots and deployments across the world and 20 commercial contracts signed since the beginning of 2007, Alcatel-Lucent is No. 1 in the worldwide WiMAX market.

Alcatel-Lucent’s Universal WiMAX solution integrates the latest technological innovations, such as “beam forming”* and MIMO**. Beam forming enables a service provider to dramatically reduce the number of radio sites needed to provide coverage – in some instances by as much as 40 percent – while reducing interference and ensuring better indoor penetration of the radio signal. MIMO helps make radio links more robust, nearly doubling the capacity delivered in dense urban environments.