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China Telecom selects Alcatel’s IP solution to enhance triple play service offering in Anhui Province


Paris, December 12, 2005 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that Anhui Telecom, a provincial subsidiary of China Telecom, has selected Alcatel to expand and optimize its metropolitan network across the Anhui Province to deliver higher quality and more reliable IP-based voice, video and data services. This contract was won through Alcatel Shanghai Bell, Alcatel’s flagship Chinese company.

Anhui Telecom will deploy the Alcatel 7750 Service Router (SR), a purpose-built IP router, which will help the service provider deliver non-stop services with the highest levels of quality in seven major cities of the province including Bengbu, Anqing, Suzhou, Fuyang, Huangshan, Huaibei and Tongling. Once the installation is complete in early 2006, Anhui Telecom will be able to provide more robust triple play services to both residential and enterprise users, and offer Service Level Agreement (SLA)-based networking services like Layer 2 and Layer 3 virtual private networking (VPN).

“This contract marks the 23rd province in China to utilize the Alcatel IP solution,” said Basil Alwan, president of Alcatel’s IP activities. “Transforming the network to deliver next-generation IP services is a notable trend; and we are pleased to be selected by so many discriminating service providers in China as they continue to build out their network to address this growing appetite for triple play services.”

The Alcatel 7750 SR is the industry’s first service router designed and optimized for the delivery of high performance carrier-grade data, voice and IPTV services. The platform has gained significant traction since it was introduced at the end of 2003. In China, the 7750 SR serves in the national, provincial and metro production networks of all the key service providers, including China Telecom, China Netcom, China Mobile, and China Unicom. Anhui Telecom joins a list of more than 90 customers in 40 countries around the world.

About China Telecom
China Telecom Group, officially established in 2002 following the division of the former China Telecom, is a key fixed telecom operator in China. The group has 20 provincial (municipal and autonomous regional) corporations in southern China, holding 70% of the national trunk-line transmission network assets owned by the former China Telecom. Subordinated to the central government, the new China Telecom has a 158 billion yuan (RMB) registered capital. Currently, China Telecom operates domestic and international fixed-line networks, providing voice, data, video, multimedia and information services. It is also engaged in international telecom accounts settlement and overseas market exploration.

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 employees. Alcatel brings its leading position in fixed and mobile broadband networks; applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 12.3 billion and 56,000 employees in 2004, Alcatel operates in more than 130 countries.


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