Alcatel-Lucent re-affirms broadband access market leadership

Ranked as the leading vendor in DSL and GPON by Dell’Oro and Infonetics

Paris, March 2008 – Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that analyst companies Dell’Oro and Infonetics Research have listed Alcatel-Lucent as the market leader in digital subscriber line (DSL) and gigabit passive optical networking (GPON) technologies respectively.

Dell’Oro’s 4Q07 access report[1] confirms Alcatel-Lucent’s overall market leadership in DSL, with a 39% market share in port shipments. According to Dell’Oro, Alcatel-Lucent led the fourth quarter not only in overall DSL numbers, but also in terms of IP digital subscriber line access multiplexer (DSLAM) and very high-speed DSL (VDSL) port shipments (36% and 47%, respectively).

Alcatel-Lucent maintained its strong position with 8.3 million DSL lines shipped in 4Q07. Alcatel-Lucent’s DSL shipments were up 4% quarter on quarter, and up 8% year on year. In total, the company has already shipped more than 158 million DSL lines worldwide.

Additionally, Infonetics Research ranked Alcatel-Lucent as the industry’s leading GPON vendor. The analyst company announced in its 4Q07 PON & FTTH market share report[2] that Alcatel-Lucent lead the 4Q07 worldwide GPON market in terms of ports shipped (42%), which is almost triple the market share of its nearest competitor. The report also indicates that Alcatel-Lucent was the FY07 leader in worldwide GPON port shipments (28%).

Alcatel-Lucent’s clear leadership in fixed broadband access builds to a large extent on the Intelligent Services Access Manager (ISAM) family, an IP Access platform that supports a flexible mix of future-proof access technologies (xDSL, GPON, point-to-point fiber) and a variety of network topologies (central office as well as remote architectures). The ISAM platform has already been selected by more than 180 customers around the world.

Alcatel-Lucent is engaged in over 80 FTTx projects worldwide, over 60 of which are with GPON. Leading service providers like Verizon and France Telecom have adopted Alcatel-Lucent’s GPON solution – with Alcatel-Lucent’s FTTH solutions being adopted as well by numerous competitive providers (including Hanaro Telecom, Neuf Cegetel and Hong Kong Broadband Network Limited); by utility companies (a.o. NRGi Fibernet, Jönköping Energi, Bristol Virginia Utilities); municipalities (a.o. Arvidsjaur, Tidaholm [Sweden]), and regions such as Asturias (Spain). Alcatel-Lucent recently signed a number of contracts to deploy point-to-point (P2P) fiber networks too (a.o. Denmark’s Sydfyns Intranet and Switzerland’s ewz).

[1]Access Report 4Q07: Market Summary & Vendor Information - Cable Modem, DSL, PON. (Dell’Oro - February 20th, 2008)

[2]PON and FTTH Equipment and Subscribers: Quarterly Worldwide Market Share and Forecasts for 4Q07. (Infonetics Research - March 10th, 2008)