Alcatel-Lucent continues to lead the fixed broadband access market in Q1 2008

Building on innovation to support leadership in IP DSLAM and VDSL



Paris, May 2008 – Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that, following the publication of the Dell’Oro 1Q’08 access report*, the company remains the worldwide leader in DSL with 6.6 million DSL lines shipped in 1Q’08. Witha cumulative market share in DSL port shipments of more than 40%, more than three times that of its nearest competitor, and a worldwide installed base of 166 million DSL lines, Alcatel-Lucent continues to lead the fixed broadband access market.

According to Dell’Oro, Alcatel-Lucent leads the IP digital subscriber line access multiplexer (IP DSLAM) market with a Q1 2008 market share of 33%. Alcatel-Lucent has also seen a rapid uptake of its very high-speed DSL (VDSL) shipments in 1Q’08, surpassing a 47% market share in terms of ports shipped - an all-time high, and more than threefold the number of shipments of Alcatel-Lucent’s nearest competitor in this field.

Alcatel-Lucent is maintaining its regional leadership in North America, EMEA and Rest of the World, while consolidating its number-2 position in Asia Pacific.

Alcatel-Lucent also confirmed its technological leadership in DSL by launching its Smart DSL solution that targets operators who look at deploying higher-speed bandwidth services over asymmetric DSL (ADSL) and VDSL lines. The Smart DSL technology allows operators to guarantee DSL line stability at bit rates that are typically as much as 30% higher than traditional methods, building on Alcatel-Lucent’s Artificial Noise and Virtual Noise innovations.

“Our leadership in IP DSLAMs and VDSL shipments – as well as our ongoing DSL innovations - demonstrate that Alcatel-Lucent continues to be the leading vendor in fixed broadband access,” says Luis Martinez Amago, President of Alcatel-Lucent’s fixed access activities. “With one out of three fixed broadband customers around the world served through an access network provided by Alcatel-Lucent, we are committed to support our customers’ network transformation projects.”

Alcatel-Lucent’s 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). More than 185 service providers around the world have already selected the ISAM platform.

* DSL Access Concentrators (Single Service + Multiservice) - Worldwide & Regions (1Q08). (Dell’Oro – May 13th, 2008)