Alcatel-Lucent introduces IPTV solution for underserved smaller regional markets based on Microsoft’s Mediaroom

Cinergy MetroNet selects the solution to offer feature rich IPTV services to customers in Indiana

Paris - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today unveiled a turnkey, compact IPTV solution, powered by Microsoft Mediaroom, that is designed to cost-effectively support networks of between 1,000 and 100,000 set-top-boxes. The solution not only provides high-quality television programming, but also enables new consumer media services through the blending and personalization of web and broadcasting content. This new offer, which uses a single equipment rack, supports more than three times as many households than previous versions of the Microsoft Mediaroom-based IPTV solution.

Cinergy MetroNet is the first customer to use the solution and will begin offering Alcatel-Lucent-powered IPTV services to six cities in Indiana, reaching approximately 50,000 potential customers beginning July 26, 2010.

The Alcatel-Lucent IPTV offer, called the Integrated Solution for Microsoft Mediaroom, is a substantially modified version of an existing solution thatAlcatel-Lucent has previously deployed in more than 25 [large] networks globally. The system uses Internet protocol (IP) technology to transmit the television signals and, thanks to the power and flexibility of IP, enables carriers such as Cinergy to offer a variety of new services.

“The needs of operators serving smaller customer bases are unique because they often don’t need large multi-rack solutions" said Vince Vittore, principal analyst for Yankee Group. “Alcatel-Lucent’s approach to this market is unique because it combines a great user experience with a reasonable price point and leverages its experience as a video integrator.”

How the solution fits with Cinergy MetroNet needs?

This new Integrated Solution is designed to meet the cost requirements of regional communication service providers (CSPs) such as Cinergy MetroNet who serve local and regional markets.

“We want to provide our customers superior service and access to such capabilities as WholeHome DVR, interactive applications and over-the-top content,” said John Cinelli, CEO of Cinergy MetroNet. “Alcatel-Lucent’s IPTV solution fits our business needs and gives us a powerful, flexible, and differentiating tool to deliver IPTV-based services to our customers.”

Cinergy MetroNet plans to offer its customers multimedia services such as broadcast TV blended with web content; the ability to simultaneously record multiple shows while watching another; and the delivery of personalized content such as weather, traffic and news.

About the new Integrated Solution for Microsoft Mediaroom release

“Operatorswho support from 1,000 to 100,000 set-top-boxes are underserved when it comes to IPTV and next generation multimedia services,” said Geeta Chaudhary, vice president of Alcatel-Lucent’s Multimedia Integration Services group. “To address this need we created an optimized IPTV solution that is pre-integrated and lab tested, minimizing the technical and commercial risks associated with launching IPTV services. We estimate that more than 11 million new IPTV subscribers will be served by regional communication service providers in the coming three years and this compact release is designed to help our customers better address this huge opportunity”

In this release of the solution, Alcatel-Lucent has integrated innovative technology from Microsoft and HP. Some key features of the new solution:

* The solution, based on Microsoft’s Mediaroom Hyper-V architecture, includes a unique design integration by Alcatel-Lucent that more than triples the number of set-top-boxes supported in a single deployment and reduces the number of servers needed.
* This solution is further optimized when deployed on HP BladeSystem with HP Virtual Connect™ technology, reducing the complexity of the architecture and increasing flexibility to respond to change in workload demands.
* The small physical footprint means a much “greener” deployment with reduced overall energy and operating costs.
* Pre-tested in Alcatel-Lucent’s end-to-end IP Transformation Center (IPTC) laboratories, resulting in reduced technical risk and improved time to market by as much as 30%.

Alcatel-Lucent also supports regional communications service providers with a host of IPTV consulting services such as: end-user insight, demand analysis, IPTV services definition and launch as well as the end-to-end management.

The micro-architecture: Alcatel-Lucent Integrated Solution for Microsoft Mediaroom supports Alcatel-Lucent’s Multimedia strategy, which is focused on providing an enriched multi-media experience for end users, driving subscriber growth, customer retention and new revenues.

About Cinergy MetroNet
Cinergy MetroNet, Inc. provides enhanced communications via its all-fiber, optic network services to homes and businesses. Cinergy MetroNet’s services include local and long distance telephone, high-speed Internet access and the latest in digital cable television technology. Through its fiber optic infrastructure and services, Cinergy MetroNet improves the quality and the communities it serves.

About Alcatel-Lucent Multimedia Integration Services
Alcatel-Lucent Multimedia Integration is the market leader in the design, integration and deployment of IPTV networks and applications. Leveraging years of experience, broad expertise and extensive investments to develop proven methodologies, Alcatel-Lucent Multimedia Integration delivers world-class, end-to-end multimedia services that are reliable, scalable and secure with reduced time to market. Alcatel-Lucent provides middleware solutions that support more than 5 million IPTV subscribers, representing more than 18 percent of all IPTV subscribers worldwide. The company is also involved in more than 55 triple play service delivery architecture (TPSDA) deployments and more than 60 IPTV transformation and integration projects. These transformation projects leverage Alcatel-Lucent’s extensive field deployment experience and lab investments in next-generation IP Transformation Centers (IPTCs) and dedicated IPTV Network Solution Integration & Testing lab (NSIT) to reduce time to market and mitigate deployment risk. For more information on Multimedia Integration Services please click here

About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted transformation partner of service providers, enterprises, strategic industries such as defense, energy, healthcare, transportation, 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 and optics 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 15.2 billion in 2009 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com, read the latest posts on the Alcatel-Lucent blog http://www.alcatel-lucent.com/blog and follow us on Twitter: external linkhttp://twitter.com/Alcatel_Lucent.