VTEL Holding selects Alcatel-Lucent for deployment of the first WiMAX Rev-e network in Georgia

Paris and Tbilisi, July 2008 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) has been selected by VTEL Holding Ltd., a Dubai-based multinational telecommunications corporation, to design, deploy and maintain the first commercial WiMAX 802.16e-2005 (Rev-e) network in Georgia. VTEL Georgia LLC , a greenfield operator established by VTEL Holding, plans to launch the new WiMAX services under the brand MAXIMALI in major cities by September 2008. The company plans to continue its investments during the following years to cover the other parts of the country.

WiMAX is a wireless broadband technology that will enable VTEL to provide its subscribers with a wide range of broadband services including high-speed Internet access, Voice over IP and other consumer and business services.

Under the terms of the turnkey contract Alcatel-Lucent will supply a comprehensive infrastructure solution, including WiMAX Rev-e radio access – base stations, wireless access controllers, and operations and maintenance center (OMC). The core IP network will be based on Alcatel-Lucent Service Router family to ensure the highest quality and availability of services for the end-users. Alcatel-Lucent will also provide the 9500 Microwave Cross Connect (MXC) system to support the backhaul requirements for the network, as well as network- planning and engineering, integration optimization and commissioning services.

“VTEL Georgia LLC is pioneering the introduction of WiMAX services in the region. Since January 2008, VTEL Georgia has been running a WiMAX trial with a limited number of customers in Tbilisi and Batumi. The objective of the trial is to demonstrate the effectiveness of WIMAX technology,” said Mr. Khaled Rifai, Chief Technical Officer of VTEL Holdings LTD. “WiMAX technology is an ideal solution for building broadband data and voice services in Georgia, addressing the country’s needs for developing the telecom infrastructure while overcoming the geographical challenges. We selected Alcatel-Lucent because the company has demonstrated its leadership in this domain and its commitment to help operators meet the unique needs of their subscribers.”

“This contract highlights Alcatel-Lucent’s ability to deliver the most advanced WiMAX solution to its customers,” said Frederic Rose, President of Alcatel-Lucent’s activities for Europe, Asia and Africa. ”This is another illustration of Alcatel-Lucent’s commitment to WiMAX as a key element of our universal broadband access strategy and it also confirms our strong presence in Georgian market.”

Alcatel-Lucent’s Universal WiMAX solution integrates the latest technological innovations, such as “beam forming”* and MIMO**. Beam forming enables a service provider to dramatically reduce the number of radio sites needed to provide coverage – in some instances by as much as 40 percent – while reducing interference and ensuring better indoor penetration of the radio signal. MIMO helps make radio links more robust, nearly doubling the capacity delivered in dense urban environments.

With 29 commercial contracts and more than 70 trials around the world, Alcatel-Lucent is the undisputed leader in the WiMAX market. Alcatel-Lucent is also a global leader in network planning, design, consulting, project management and optimization of networks.

About WiMAX
WiMAX (802.16e-2005) stands for Worldwide Interoperability for Microwave Access. It enables Voice and Broadband connectivity for fixed, nomadic or mobile use in urban, suburban and rural areas. For more information about Alcatel-Lucent WiMAX solutions, please visit www.alcatel-lucent.com/wimax

* “Beam forming” is an Advanced Antenna Technology (AAT) that ensures that radio power is concentrated where the WiMAX terminals are, adjusting the beam automatically as the terminals move around the coverage area.

** “MIMO” (Multiple Input – Multiple Output) is an Advanced Antenna Technology (AAT) that combines the radio signals transmitted and received on separate antennas. The technique takes advantage of the multiple paths and reflections of a radio signal to strengthen radio communications, particularly in densely populated areas where signals can be degraded by buildings and other physical obstacles.