China Mobile signs USD 340 million agreement with Alcatel-Lucent for mobile solutions

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has signed a comprehensive agreement valued at USD 340 million for mobile communications solutions and services with China Mobile, a leading Chinese mobile service provider. The agreement – which was secured through Alcatel-Lucent’s flagship company in China, Alcatel Shanghai Bell – enables the company to expand into several new provincial markets in addition to growing its existing base, which strengthens its position as one of the leading GSM/GPRS/EDGE equipment suppliers for China Mobile.

Under the terms of the agreement, Alcatel-Lucent will provide China Mobile with GSM/GPRS/EDGE radio and core network equipment, customized solutions and related services that will support China Mobile’s GSM/GPRS/EDGE network expansion programs in 2007.

The network expansion China Mobile plans to undertake with the solutions provided by Alcatel-Lucent will enable the operator to meet continued strong demand for mobile service in China while reducing network operating costs.

“China’s mobile communications market continues to have enormous potential, and our goal is to help our customers realize that potential and achieve their business objectives,” said Frederic Rose, President of Alcatel-Lucent in Asia Pacific. “This agreement is a strong vote of confidence for our solutions in China and indication of the strength of our relationship with China Mobile.”

This agreement is the latest in a series of contracts that Alcatel-Lucent has concluded with China Mobile, the most recent being an agreement to provide TD-SCDMA solutions for China Mobile’s trial network expansion.

Alcatel-Lucent is a leading GSM/GPRS/EDGE network supplier in China. Since 1993 - when Alcatel set up the first trial network in the city of Jiaxing, Zhejiang Province for China Mobile - Alcatel-Lucent’s GSM/GPRS/EDGE radio equipment has been deployed in 15 provinces within China and Alcatel-Lucent’s mobile softswitch products are serving more than 12 provinces.