Telekom Austria selects comprehensive Alcatel solution for Triple Play services

Paris, July 24, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that Telekom Austria Group, the leading provider of communications services in Austria, has selected Alcatel as its technology partner for the delivery of triple play services, including IPTV (Internet protocol television), IP telephony and higher-speed Internet services. Telekom Austria is using Alcatel’s IP-based network infrastructure and end-to-end video solution to support its recently launched aonDigital TV service to households in Vienna.

With aonDigital TV customers can choose from more than 55 broadcast TV channels (some of them available in Austria for the first time), video on demand and additional information service channels. To make navigation of this content easier, aonDigital TV offers a user-friendly electronic program guide (EPG). Moreover, thanks to parental control features, parents can prevent young viewers from accessing inappropriate content. In addition to aonDigital TV Telekom Austria also offers a number of innovative applications for personal-content sharing at its customer portal www.aon.at (e.g., digital photos and self-generated content via the company’s weblog service).

Alcatel has provided an IP-based network infrastructure, including digital subscriber line access multiplexers (DSLAMs), IP routers and optical transport equipment to support the service offering. Alcatel also provided its end-to-end video solution, integrating other technology leaders in segments such as head-ends, set-top boxes and encryption systems.

“By partnering with Alcatel we can offer our customers a completely different TV experience,” said Dr. Stefan Tweraser, Head of Marketing Retail, Telekom Austria. “Information, entertainment and communication services are presented in a compelling and interactive way, directly to their TV set.”
“Telekom Austria is an innovator in broadband services and IPTV, and the launch of aonDigital TV marks another milestone in its continued efforts to provide Austrians with a dynamic entertainment and communications experience”, said Michel Rahier, President of Alcatel’s fixed communications activities. “This project provides further evidence of the strong relationship between Telekom Austria and Alcatel, which spans many years.”

Alcatel is the industry leader in providing purpose-built technology solutions and services integration that allows carriers to reduce the cost and complexity associated with triple play/IPTV deployments. Alcatel is involved in more than 35 major triple play deployments and more than 40 network transformation projects worldwide and is the leader in broadband access with more than 86 million DSL lines shipped worldwide. According to Synergy Research Group, Alcatel is #2 in the Services Edge Router category in Q1 2006, with an 18% market share, following four consecutive quarters of market share gain.. Alcatel is also the world leader in optical networking for the fifth year running with a 16% market share in 2005, according to Ovum-RHK.

About Telekom Austria
With total revenues of roughly 4.4 EUR billion and approximately 15,600 employees at year-end 2005, Telekom Austria is Austria’s leading provider of telecommunications services. It was listed on the Vienna and New York stock exchanges in November 2000. The Group has two main business areas: the wireline segment encompasses fixed line telephony, data and IT, Internet, wholesale and security services as well as multimedia applications and accounts for roughly 3 million customers. The wireless segment covers mobile communications and services roughly 9 million customers. The Telekom Austria Group has international operations in the Czech Republic, Croatia, Slovenia, Bulgaria and Liechtenstein. http://www.telekom.at

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 to their employees. Alcatel leverages its leading position in fixed and mobile broadband networks, applications and services to bring value to its customers in the framework of a broadband world. With sales of Euro 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. For more information, http://www.alcatel.com

About Alcatel’s user-centric triple play
To meet today’s quest for increased personalized and interactive services, Alcatel helps worldwide operators transform their networks and deliver a new, end-user experience. Alcatel’s user-centric triple play builds on its leadership in broadband technology, IP networking, optics, new multimedia and video applications, as well as end-to-end services integration. End-users will enjoy unique, exciting services including video on demand, personal TV, community channels, online gaming and sharing of music, photos and home videos, all delivered simply and seamlessly via a range of devices and networks. Alcatel is currently involved in more that 35 triple play network projects worldwide including AT&T/SBC, BellSouth, France Telecom, Swisscom, Fastweb or Chunghwa Telecom… For more information: http://www.alcatel.com/tripleplay

Contact press@alcatel.com

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Robin Karvo

Corporate Media Relations

Alcatel

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