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China Telecom selects Alcatel to upgrade DSL network for triple play service delivery


Paris, February 6, 2006 — Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that China Telecom, the largest fixed telecommunication service provider in China, has selected Alcatel to upgrade its existing broadband access network across 26 provinces in China to prepare for triple play service delivery. This agreement was signed through Alcatel Shanghai Bell, Alcatel’s flagship Chinese company.

China Telecom will deploy the Alcatel solution in South China’s 18 provinces and North China’s eight provinces including Guangdong, Shanghai, Sichuan, Zhejiang, Fuzhou, Hei Longjiang and Inner Mongolia. It will lay a solid foundation for future triple play service delivery. China Telecom subscribers will have access to a series of high quality broadband services such as very high-speed Internet access, videoconference, IPTV and other multimedia services.

Gerard Dega, President of Alcatel Shanghai Bell, added, “As user demand for high speed Internet access services grows in China, service providers need to enhance and expand their broadband service offerings to better serve their customers. We are very proud to have been selected once again by China Telecom for this significant broadband access network upgrade. It is also an essential step towards mass deployment of triple play services in China. ”

China Telecom will deploy the Alcatel 7302 Intelligent Services Access Manager (ISAM). Based on an industry-leading architecture that ensures 100% service throughput to every user simultaneously, the Alcatel ISAM solution will enable China Telecom to offer user-centric broadband services at triple the speed of conventional ADSL technology.

Since its launch in September 2004, more than 65 customers worldwide have selected the Alcatel 7302 ISAM technology as the cornerstone for their access network transformation.

Alcatel is the leading broadband access solution provider in the world. At the end of Q3 2005, Alcatel had shipped more than 74 million DSL lines worldwide, and its broadband access solutions are prominent in networks of over 120 service providers.

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 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries.


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