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Sakhatelecom selects Alcatel to deploy a next generation network in Russia


Paris, March 7, 2006 — Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has signed a contract with Sakhatelecom, one of the leading regional incumbent operators in Russia, to deploy a next-generation (NGN) network in the Republic of Sakha, also known as Yakutiya. The project will start in the second quarter of 2006 in the cities of Yakutsk and Mirny and is scheduled for completion by the end of the year.

Alcatel’s IP-based solution will enable Sakhatelecom to further continue dynamic development of its telecom network in Yakutiya based on the latest technologies, to offer its customers next generation services such as NGN, IP-video, including IP Centrex, videoconferencing, virtual private networks and unified messaging, as well as enhanced Internet services. This should give a new impulse to the growth of its ADSL subscribers’ base, the introduction of multimedia and many other broadband services.

“We have been working successfully with Alcatel for more than ten years so it’s with great confidence that we’ve selected Alcatel’s industry-leading solutions for our NGN deployment,” said Nikolay Nikolaev, General Director of Sakhatelecom. “This project enables us to enhance our competitive edge by offering a broader range of services, to better answer growing demands of end-users and corporate customers for modern telecommunication services and reduce operating expenses through improved network efficiency.”

“Alcatel’s experience and expertise in NGN is now further entrenched in Russia,” said Michel Rahier, President of Alcatel’s fixed communications activities. “Our end-to-end portfolio will help Sakhatelecom deliver new broadband services, while providing a solid foundation for future transformation to a fully packet-based network.”

Under the terms of the contract, Alcatel will provide its comprehensive IP multimedia subsystem (IMS)-compliant NGN solution including the Alcatel 5020 Softswitch and Alcatel 7515 family of media gateways. Alcatel will also provide its data-aware Optical Multi-Service Node (OMSN) systems and the Alcatel 7750 Service Router, which provides a service, and subscriber aware infrastructure that allows the service provider to achieve economies of scale and maximize the profitability of services. Alcatel will also provide a state-of-the-art broadband access network based on its 7302 ISAM, the market’s leading high-end IP broadband services access platform. The Alcatel ISAM includes a Voice Package that adds a voice over IP media gateway as well as legacy POTS and ISDN line cards to support a smooth migration to an NGN/IMS network.

Globally, more than 90 fixed NGN projects have been undertaken by Alcatel to date including operators such as BT, Asia Pacific Telecom Group (Taiwan) and Telecom Austria.

About Sakhatelecom
JSC Sakhatelecom was founded in 1931. In 2003 state company Sakhatelecom was transformed into JSC Sakhatelecom. Sakhatelecom – one of the largest regional companies in the Republic of Sakha (Yakutia). It employs more than 4271 people, and has 17 branches. It offers a long-distance national and local telephony services (including satellite telephony). The company operates 453 switches with a total capacity of 299 thousand lines, 43 satellite grounds stations. In 2005 its revenues reached 2369 billion rubles. Apart from traditional telecom services Sakhatelecom offers a broad range of other modern telecommunications, including several options of high speed Internet access.

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 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries.


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