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Alcatel-Lucent gains IP router market share for fifth straight quarter


Paris - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that, according to Q3 2009 data from Dell’Oro, it gained market share in the Service Provider Router segment for the fifth consecutive quarter. According to Dell’Oro, Alcatel-Lucent increased its worldwide market share by four percentage points year-over-year (3Q09 vs 3Q08). In addition, it gained 4.8 percentage points year-over-year (Y/Y) in the fastest growing sub-segment - Edge Routers - growing its number two position in the quarter to 20.5% of the global market.

In external linkDell’Oro Group’s Routers Report 3Q09, the firm stated: “Alcatel-Lucent reported strong performance in 3Q09. It was the only SP Edge Router vendor to record Q/Q and Y/Y increases. Despite the global recession, Alcatel-Lucent performed well during the first three quarters of 2009, increasing its year-to-date revenue share to 20%, well above its 15% share for full-year 2008. We attribute Alcatel-Lucent’s success to the following factors: expanding customer base, regional balance and broad product line.”

In addition, Alcatel-Lucent’s success in the service provider router space was highlighted in a recent technology research report, “Data Networking & Wireline Equipment - Inside the Routing Markets”, from Barclays Capital. “Alcatel-Lucent has been the clear rising star in the carrier edge router market at the moment. Alcatel originally entered the market through its acquisition of TiMetra in 2003, and has since gained significant traction with the flagship product (now called 7750). Alcatel-Lucent has been on a steady upward ramp in the edge routing market since 2004, growing from 0% share to now nearly 20%* share. Beginning in 2010, Alcatel will look to grow its share in the core space with the introduction of its 100 Gbps line card.”

“We’re particularly pleased with traction and momentum in North America in the past year, with recent wins announced with Cox, Equinix, Globalive and Qwest as well as a number of strategic wins that, while not yet publicly announced, are already contributing revenue. Strong data traffic growth in wireless networks is driving mobile backhaul upgrades as well as packet core evolution and Alcatel-Lucent has the right technologies and solutions to help wireless carriers deal with the challenges and also get ready for LTE,” said Basil Alwan, president of Alcatel-Lucent’s IP activities. “Alcatel-Lucent continues to lead the industry in IP router innovation, from silicon to software, and is focused on helping our customers to monetize their network assets. We’re putting our application enablement vision and related High Leverage Network™ architecture into action and the growth in market share reflects this.”

Alcatel-Lucent’s technology leadership has continued in 2009, with portfolio enhancements that position it for continued gains as the global economy recovers. Service routing innovations announced so far in 2009 include the industry’s first 100 Gigabit Ethernet service routing interface for the edge and metro, a converged IP/Optical backbone transformation solution that slashes CAPEX and OPEX in the network core, application-awareness for cloud-based Enterprise WAN services, a massively scalable wireless Internet gateway platform for the LTE evolved packet core and new service router platforms for smaller carriers and enterprise & vertical markets, further rounding out the portfolio and expanding Alcatel-Lucent’s addressable market.

Alcatel-Lucent’s service router portfolio has been at the forefront of the move to converged IP/MPLS networks that support residential, business and mobile broadband services. Since entering the market, more than 300 customers in 100+ countries around the world have selected the Alcatel-Lucent IP/MPLS portfolio as key elements of their IP transformation, including 24 of the world’s top 30 carriers.

*based on Q2 2009 Dell’Oro data

About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of service providers, enterprises and governments worldwide, providing solutions to deliver voice, data and video communication services to end-users. A leader in fixed, mobile and converged broadband networking, IP technologies, applications and services, Alcatel-Lucent leverages the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries and the most experienced global services organization in the industry, Alcatel-Lucent is a local partner with a global reach. Alcatel-Lucent achieved revenues of Euro 16.98 billion in 2008 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet:


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