China Mobile selects Alcatel-Lucent to enhance and expand newly acquired GSM network in Pakistan

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has been awarded a network expansion contract from China Mobile Pakistan Limited (CMPak Ltd) a company created after the former Paktel was acquired by China Mobile, the world’s largest mobile service provider. This turnkey contract covers the expansion of the CMPak GSM network in northern Pakistan. The equipment for this expansion will be provided by Alcatel-Lucent’s Chinese flagship company Alcatel Shanghai Bell, a long-term partner to China Mobile.

Once implemented, the network expansion will enable CMPak to bring mobile service to a greater number of people in the region, helping to improve their economic prospects. This new contract underscores Alcatel-Lucent’s leadership in high-growth economies and strengthens the company’s presence in Pakistan.

“The acquisition of Paktel is China Mobile’s first venture outside China. It is our prime objective to be rated as the best cellular service provider, not only by expanding our service area to every corner of the country but also by offering unmatched customer service,” said Guo Yonghong, CEO CMPak Limited. “We believe that by choosing Alcatel-Lucent we have partnered with an industry leader that will help us implement our plans to undertake the most significant network expansion in the history of Pakistan.”

“CMPak has a strong vision for expanding mobile service in Pakistan. Alcatel-lucent solutions will enable CMPak to provide mobile services in the north of Pakistan, a region that has historically been underserved,” said Olivier Picard, President of the Alcatel-Lucent Europe and South activities. “In a wider context this win demonstrates our ability to bring service to users in high-growth economies and support our customers on a global basis.”

Under the terms of this contract, Alcatel-Lucent will deliver its industry-leading, end-to-end GSM/GPRS/EDGE solutions, including Base Station Sub-systems hardware and software. This includes the high-power radio module, TWIN TRX, a recent addition to the Alcatel-Lucent portfolio that doubles base-station capacity in urban environments with high subscriber density and offers wider coverage in rural environments while at the same time reducing power consumption by up to 30%.

Alcatel–Lucent also will supply its PDH and SDH digital microwave radio systems, which provide scalable and reliable transmission for mobile infrastructures. The Alcatel-Lucent PDH and SDH systems improve the backhaul efficiency of the mobile radio access network, helping CMPak reduce costs substantially. By optimizing how voice and data traffic is managed and transmitted from the base stations to the core network, this new generation of digital microwave radio links will enable the CMPak network to quickly and efficiently adapt to the growth in traffic and services.

In addition Alcatel-Lucent will supply CMPak with a comprehensive suite of network integration services such as network optimization, system support and general project management.

The Paktel acquisition is China Mobile’s first venture outside of China and Alcatel-Lucent’s contract with CMPak demonstrates the company’s ability to support Chinese customers both within China and globally. This contract follows a contract for mobile solutions that Alcatel-Lucent signed with China Mobile in May 2007 and is evidence of the strong relationship that exists between the two companies