Enhancements to Alcatel-Lucent IP/MPLS portfolio smooth the way to introduction of next-generation mobile services

Optimization of 7750/7710 Service Router platforms builds on Alcatel-Lucent’s leadership

in mobile IP network transformation

Paris, January, 2008 — Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced the expansion of its market-leading Mobile Evolution Transport Architecture (META) with the introduction of new hardware and software innovations for its IP/MPLS service router portfolio. These innovations smooth the way for the delivery of next-generation mobile services by enabling operators worldwide to construct highly resilient, enduring network infrastructures that provide greater flexibility and efficiency as networks evolve from 2G to 3G and beyond, ultimately offering truly broadband capabilities on the go.

Mobile applications are becoming more and more ubiquitous and indispensable for subscribers in their daily lives, with users today increasingly using applications such as Web surfing, multimedia messaging, photo sharing and video streaming on their mobile handsets. This trend is forecast to accelerate over the coming months and years with the increasing availability of even more bandwidth-intensive and time-sensitive applications such as mobile TV, and interactive video gaming. To meet this anticipated demand, mobile operators must provide the greater bandwidth and improved resiliency these services require. The enhancements to Alcatel-Lucent’s IP/MPLS portfolio address these requirements through dramatic improvements in network efficiency, capacity, density, reliability and resiliency.

“Packet transformation of mobile transport networks will emerge as a major theme in 2008,” said Mark Seery, vice president, Switching and Routing, Ovum RHK. “The mobile network environment remains a complicated multi-protocol environment requiring quality, reliability, and segment specific features. Alcatel-Lucent’s combination of experience in mobile transport networks and its successful IP/MPLS product portfolio position it well for this opportunity.”

Among the key beneficiaries of these enhancements to Alcatel-Lucent’s IP/MPLS portfolio are operators of CDMA-based mobile networks, who are looking for ways to simplify and consolidate their legacy radio access network (RAN) backhaul infrastructures in order to reduce operational complexity and total cost of ownership. The capabilities announced today in the 7710/7750 SR platforms enable the consolidation of multiple pairs of aggregation routers and multi-layer switches into a single pair of Service Routers – significantly reducing operational complexity. As a result, CDMA operators are able to reduce their footprint and power consumption, and hence their operating costs.

“In order to profitably deploy new broadband wireless services that can help them differentiate themselves from their competitors, mobile carriers are beginning to invest in the transformation of their network infrastructures by migrating to a more robust and scalable converged IP/MPLS backbone,” said Basil Alwan, President of Alcatel-Lucent’s IP activities. “Alcatel-Lucent continues to lead the market with a comprehensive IP/MPLS service router portfolio that is optimized for mobile network environments, now further enhanced with a best-in-class feature set built to deliver an end-to-end mobile IP/MPLS backhaul solution that enables network convergence and evolution.”

New product innovations -- which enhance interface flexibility for increased network efficiency, capacity and density for mobile network environments -- include:

* 4-portChannelized DS3/E3 Any Service Any Port (ASAP) Media Dependent Adaptor (MDA)
* 12-port Channelized DS3/E3 ASAP MDA
* 1-port Channelized OC-12/STM4 ASAP MDA
* 1-port Channelized OC-3/STM-1 Circuit Emulation Services (CES) MDA
* 1-port Channelized OC-3/STM-1 CES Compact Media Adaptor (CMA)*

New enhancements for the Alcatel-Lucent Service Router Operating System (SR OS) – which dramatically improve network reliability and resiliency (with failover times 2-3 times faster than alternative solutions, thus preventing dropped calls and enhancing customer satisfaction), include:

* Multi-chassis Automatic Protection Switching (APS)
* Stateful Multi-Link Point-to-Point Protocol (MLPPP) resiliency
* ATM Pseudowire redundancy
* Multi-Class MLPPP

For more information, please visit: www.alcatel-lucent.com/ipnews

Alcatel-Lucent IP/MPLS solutions have been selected by a growing list of mobile operators for their network transformation including Avea, China Mobile, HITS Telecom Uganda, Mobitel, UMC Ukraine, SFR, Softbank Mobile, and Vodafone. In total, Alcatel-Lucent IP/MPLS solutions have been selected by more than 190 service providers in more than 75 countries. During the third quarter of 2007, Alcatel-Lucent reinforced its #2 position in IP/MPLS edge garnering 18% of the market according to Ovum-RHK.

*7710 SR only
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