Alcatel-Lucent innovates in metro optical transport with Zero Touch Photonics

1830 Photonic Service Switch enables service providers to respond to end-users’ demands with unprecedented flexibility and efficiency

Paris, Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced the worldwide commercial availability of its innovative metro wavelength division multiplexing (WDM) platform paving the way for optical network transformation. Named 1830 Photonic Service Switch (PSS), this breakthrough product meets service providers’ new requirements for controlled investment in next generation photonic infrastructures by leveraging its Zero Touch Photonics value proposition and unique technical advantages. Zero Touch Photonics eliminates the need for frequent on-site interventions and provides a WDM network that is more flexible to design and install, easier to operate, manage and monitor, where wavelength services can be deployed faster and reconfigured according to more dynamic traffic demands.

“For service providers, controlling capital budget, network performance and operating expenses are just as important as building their revenue stream,” said Romano Valussi, President of Alcatel-Lucent’s Optics activities. “Based on Zero Touch Photonics, the Alcatel-Lucent 1830 PSS accelerates time to service, simplifies operations, and improves performance for better total cost of ownership.”

“With its unique Zero Touch Photonics value proposition, Alcatel-Lucent continues to lead innovation in WDM, the optical networking segment expected to grow the most, to meet customers’ demands for OPEX and CAPEX reductions,” said Eve Griliches, Program Director, IDC. “In the Alcatel-Lucent 1830 PSS, the software intelligence and optimized photonic architecture are elegantly combined to deliver ease of use.

Meeting customer demand
Worldwide demand for bandwidth continues to grow, fueled by new IP-based services and multimedia applications. Service providers are increasingly focusing on WDM technology, which provides the lowest cost per transmitted bit, as a strategic infrastructure asset to support higher speed traffic demands to end users and enable the growth in the Internet, in particular in the metro part of their networks. As WDM has evolved, some limitations - such as manual involvement with planning and provisioning to adapt to dynamic traffic demands - prevented services providers from offering a competitive time-to-market service. The WDM system provided higher bandwidth but the hidden costs negatively affected most business cases making it difficult to offer competitively priced, on-demand, content-focused services in a timely manner.

Coupling technology with customer needs to create end-user value
With the new 1830 PSS, Alcatel-Lucent positions itself to partner with services providers to develop new sustainable business models, where bandwidth growth is achieved while optimizing their total cost of ownership, including energy and space savings. The result will be next-generation photonic networks that can mimic the flexibility, automation and fast time-to-service capabilities of digital-based transport networks while ensuring the bandwidth efficiency of pure photonic networks.

According to the business case developed by Alcatel-Lucent Bell Labs, a network built with the new concept of the 1830 PSS can expect to see a more positive return than one built with a fixed optical add-drop multiplexer. A baseline case of expected traffic growth yields a 94% improvement in net present value (NPV) of investment. Scenarios built using more optimistic and pessimistic traffic growth levels delivered similar results.

Leveraging its worldwide leadership in the WDM segment (Source: industry analyst firms), Alcatel-Lucent continues innovating with its unique Zero Touch Photonics value proposition. The Alcatel-Lucent 1830 PSS to allow service providers to deliver any content to their end-users with the best value while facing higher bandwidth demands and declining service tariffs.

The new Alcatel-Lucent 1830 PSS metro WDM platform targets worldwide accounts, including fixed and mobile service providers, incumbent and alternative providers, cable operators and multiple service operators (MSOs), industry sectors (such as power, transportation, oil and gas, and media broadcasters), medium-large enterprises and public sectors (such as government, municipalities, education and research).

About Alcatel-Lucent in Optics
The world leader in optical networking with a 24% market share in 2007 (Source: Ovum RHK), Alcatel-Lucent is spearheading the transformation to all-packet transport. Alcatel-Lucent integrates its experience, leading portfolio and innovative vision into optical and microwave solutions that support a broad range of blended service applications - such as triple play, Carrier Ethernet connectivity and 3G mobile backhaul – exceeding customer needs in the fixed, mobile, submarine and vertical markets.

About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprise and governments worldwide, to deliver voice, data and video communication services to end-users. As a leader in fixed, mobile and converged broadband networking, IP technologies, applications and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at home, at work and on the move. With operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry, and one of the largest research, technology and innovation organizations in the telecommunications industry. Alcatel-Lucent achieved revenues of Euro 17.8 billion in 2007 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com