Zhejiang Telecom selects Alcatel to upgrade its customer service centre

Paris, December 19, 2005 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been selected by Zhejiang Telecom, a provincial subsidiary of China Telecom, to upgrade and expand its customer service centre with Alcatel’s Business/Operation Support System (B/OSS) solution across the province.

Alcatel is the integrator and coordinator of the project. Under the contract, Alcatel will integrate its industry-leading Genesys contact center software, access switching and other equipment and will upgrade its recording system, database/application server system and digital switching system. The entire project is expected to be completed in July 2006.

With this project, Zhejiang Telecom is able to extend in a reliable and efficient way its customer service to rural areas in the province. In addition, Zhejiang Telecom can deliver a series of value added services like business customer hotline, voice mail, secretary service, travelling inquiry hotline to meet end-users’ demands.

Frederic Rose, President of Alcatel’s integration and services activities, said, “B/OSS has become an increasingly hot investment for carriers to improve the operation efficiency. And the deployment of 3G, NGN and IPTV will request a powerful B/OSS system to ensure service quality here in China. With our leading technology and wide experience, I believe Alcatel is an ideal and reliable partner. ”

Alcatel is a leading B/OSS solution integrator in the world. To date, Alcatel has successfully deployed B/OSS solutions for over 80 carriers globally.



About Alcatel’s Integration and Services activities
Alcatel offers a comprehensive portfolio of services to all telecom carriers (fixed and mobile) as well as to industries and public sectors (Energy, Transport, Public Sectors, Defense and Security). To meet the increasing demand from customers to have a strategic and flexible services partner, Alcatel’s services cover both multi-vendor and multi-technology communication networks and are customized to the specific needs of the customer. Alcatel can take responsibility - locally and throughout the world - for some or all of the network design, build, systems and OSS integration, deployment, security, operation and maintenance. Alcatel is also the leader in the growing outsourcing market.

About Alcatel Shanghai Bell
Alcatel Shanghai Bell is the first foreign-invested company limited by shares in the telecommunications sector in China, with Alcatel holding 50%+1 shares and Chinese shareholders holding the remainder. The multi-billion dollar telecom technology leader delivers end-to-end telecommunications solutions and high-quality services, covering the fixed, mobile networking, broadband access, intelligent optical networking, multimedia solutions and network applications. It also has a key international R&D center with full access to Alcatel’s global technology pool, developing original technology for use in China and export to Alcatel’s customers worldwide. With an advanced manufacturing center, and the most extensive sales and support network in China, it is the only company capable of meeting the global needs of Chinese customers. For more information, visit Alcatel Shanghai Bell on the Internet at http://www.alcatel-sbell.com.cn.

About Alcatel
Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks; applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 12.3 billion and 56,000 employees in 2004, Alcatel operates in more than 130 countries.

Contact Information

Yong Cao

Alcatel Shanghai Bell China

Alcatel

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