PFESS NFDF|ATDN 7elIzy, France - 27 November, 2007

AIcateI-Lucent WIhAX @ Work

hakIng UnIversaI roadband a reaIIty


2007 has been a crItIcal year for WI|AX In terms of global momentum and for Alcatel
Lucent specIfIcally In terms of the establIshment of Its leadershIp posItIon In thIs
technology. SInce the start of the year, AlcatelLucent has secured 15 commercIal
contracts more than any other vendor for Its WI|AX solutIon, based on the latest
standard, 802.16e2005 (or Feve). The pace at whIch the company has been convertIng
trIals Into commercIal deals durIng the past months underscores the growIng operator
confIdence In the relIabIlIty, stabIlIty and attractIveness of WI|AX.

Currently more than 50 percent of the world's populatIon Is covered by WI|AX lIcenses
(prImarIly In the 2.J, 2.5 and J.5 CHz spectrum bands), and operators are movIng to brIng
new servIces to market usIng WI|AX. For Instance, AlcatelLucent recently announced wIth
DNE|AX a new operator In the 0omInIcan FepublIc - the launch of the world's fIrst
commercIal WI|AX Feve network In the J.5 CHz spectrum band, whIch was also among the
fIrst commercIal Feve networks In the world. DNE|AX Is the fIrst servIce provIder In the
0omInIcan FepublIc to offer subscrIbers and vIsItors wIreless hIghspeed broadband
nternet, multImedIa and 7oIce over P (7oP) servIces. |ore servIce launches are expected
soon.

Today, wIth the 'WI|AX @ Work' event at Its 7elIzy facIlIty, AlcatelLucent Is celebratIng
Its market leadershIp on the thIrd annIversary of begInnIng of the company's WI|AX Feve
FE0 program, an foresIghted gamble that Is clearly payIng off. As a show of confIdence,
AlcatelLucent Is gIvIng vIsItors an upclose look at WI|AX servIces In actIon, leveragIng the
campuswIde network recently put In place In 7elIzy to Improve employees' onthego
productIvIty. The network, called W0E (WI|AX 0aIly ExperIence) Is In servIce 247 and
based on the latest WI|AX technIcal features, able to support fully mobIle broadband as
well as fIxed and nomadIc servIces.

"The abIlIty of our FE0 organIzatIon and other staff to use WI|AX Feve In theIr daIly work
here Is enhancIng our understandIng of possIble applIcatIons for thIs extremely flexIble and
versatIle technology," saId KarIm El Naggar, vIce presIdent of AlcatelLucent's WI|AX
actIvItIes. "ThIs can only enhance the InnovatIveness of our thInkIng and help Alcatel
Lucent wIden Its lead over competItors."

A pIoneer In the IntroductIon of the Feve standard, AlcatelLucent was early to market
wIth the most technIcally advanced WI|AX solutIon In the Industry, IncorporatIng powerful
features such as beam formIng* and ||D**. 8eam 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 Interferences and ensurIng better
Indoor penetratIon of the radIo sIgnal. ||D helps make radIo lInks more robust, nearly
doublIng the capacIty delIvered In dense urban envIronments.

Thanks to Its early start In FE0, AlcatelLucent Is rapIdly movIng these technologIes past
the laboratory phase to full IndustrIalIzatIon; the company has already produced 5,000
WI|AX base statIons and contInues to ramp up capacIty.

AlcatelLucent's electIon to the WI|AX Forum 8oard of 0Irectors last February also was a
sIgnIfIcant mIlestone - a recognItIon of the company's commItment and contrIbutIon to the
fastgrowIng WI|AX communIty and Is a testImony to Its technIcal leadershIp In WI|AX
technologIes.

AlcatelLucent's technIcal leadershIp Is founded on the most comprehensIve product
portfolIo on the market In fIxed and mobIle broadband, IncludIng Indepth expertIse In |S,
NCN, backhaul technologIes and P network transformatIon. The company also has
unmatched experIence In managIng complex deployments worldwIde and offers a complete
range of professIonal servIces from consultIng, desIgn, rollout to outsourced network
operatIon.

ThIs makes AlcatelLucent Ideally equIpped and posItIoned to help wIreless operators
desIgn, deploy, evolve and realIze the revenue potentIal of wIreless networks and lead the
delIvery of hIghqualIty voIce and wIreless 8roadband for All. WI|AX Is a key element of
AlcatelLucent's wIreless broadband strategy and a powerful optIon to delIver hIghspeed,
hIghqualIty wIreless servIces anywhere, anytIme.

n hIghgrowth economIes, WI|AX represents an opportunIty for servIce provIders to
leapfrog to the latest technology even In areas where no telecom servIces have
tradItIonally been avaIlable. n areas where copper networks do not reach or are of poor
qualIty, WI|AX enables hIghspeed nternet access and telephony servIce vIa 7oP. At the
same tIme, these networks also can support advanced mobIle servIces for early adopters,
partIcularly In more populated, urban areas. n more advanced markets wIth a hIgh
penetratIon of telecom servIces, WI|AX allows operators to offer advanced broadband
servIces such as mobIle nternet, mobIle T7, vIdeo gamIng and mobIle offIce, whIle also
allowIng aggressIve new entrants to dIrectly challenge Incumbents.

Fecently, the nternatIonal TelecommunIcatIon UnIon decIded to Include WI|AX technology
In the |T2000 set of standards, alongsIde JC technologIes such as U|TS and C0|A2000.
ThIs endorsement by the chIef global regulatory body has raIsed WI|AX's legItImacy and Is
expected to open up more opportunItIes for global deployment, promptIng natIonal
regulators to open up more spectrum lIcenses to W|AX.

WhIle 2007 has been full of achIevements, we look forward to 2008 as a breakout year for
WI|AX, wIth a growIng wave of operators around the world launchIng commercIal servIces
followIng successful technIcal trIals. AlcatelLucent antIcIpates global market value
Infrastructure and servIces on WI|AX Feve, to ramp up from several hundred mIllIon Euro
In 2007 to 6J.54 bIllIon In 2009, wIth a strong Increase In 2008/2009. n parallel, the
ecosystem of WI|AX chIpsets, devIces, Infrastructure and applIcatIons wIll mature rapIdly
over the perIod, wIth true IndustrIalIzatIon and massmarket avaIlabIlIty of a wIde varIety
of devIces expected In 2008 as well.

AlcatelLucent Is the strongest contrIbutor In the Industry toward open (nonproprIetary)
termInal ecosystem. Through Its actIve "Dpen CPE (Customer PremIses EquIpment)
Program", the company Is fosterIng a strong and vIbrant ecosystem, ensurIng that WI|AX
operators have access to the wIdest possIble choIce of termInal devIces. WIth more than 12
partners and countIng, It counts leadIng chIpset manufacturers such as ntel, Funcom,
Sequans, 8eceem as well as devIce manufacturers such as Zyxel and Kyocera on Its lIst of
partners.

AddItIonally, In September 2005, AlcatelLucent establIshed a joIntventure FE0 Center
wIth C0DT, the ndIan Covernment's telecom technology development InstItute, to
accelerate avaIlabIlIty of low cost WI|AX devIces to address the needs of hIghgrowth
economIes. A further step was taken In November 2006 wIth the openIng of a UnIversal
WI|AX FealIty Center In ndIa. n recognItIon of these projects, AlcatelLucent won ndIa's
TE|A award for Excellence In FE0 In July thIs year.

As part of Its Dpen CPE program, AlcatelLucent Is supportIng WI|AX DT (nterDperabIlIty
Test) centers In ParIs, Stuttgart, TaIwan, the US and Korea, workIng around the clock to
test and demonstrate endtoend envIronments and termInal InteroperabIlIty.

Today our Dpen CPE program provIdes a major advantage over our competItors, because we
have commercIal agreements wIth the CPE manufacturers that enable us to test and
Introduce features earlIer, ensure faster avaIlabIlIty of Interoperable end to end solutIons
and wIden the offerIng of termInals, as well as propose a fully Integrated turnkey solutIon
If they so wIsh. ThIs Is what makes AlcatelLucent so unIque and a partner of choIce for
delIverIng true endtoend broadband WI|AX solutIons taIlored to the needs of Its
customers.

AlcatelLucent WI|AX customers Include: SH0 (a joInt venture between SFF and Neuf
Cegetel In France), 8ollore (France), Telmex (ChIle), Far EasTone (TaIwan), PrImus
(Canada), Synterra (FussIa), Drascom/|obIlInk (PakIstan), Dne|AX (0omInIcan FepublIc),
7SE NET (Cermany), ACCA (Japan), and many more.

About WIhAX:
WI|AX (802.16e2005) stands for WorldwIde nteroperabIlIty for |Icrowave Access. t enables 7oIce
and 8roadband connectIvIty for fIxed, nomadIc or mobIle use In urban, suburban and rural areas. For
more InformatIon about AlcatelLucent WI|AX solutIons, please vIsIt www.alcatellucent.com/wImax.

"8ecm ]ormny" s cn Advcnced Antennc Technoloyy (AAT) thct ensures thct rcdo power
s concentrcted where the WMAX termncls cre, cd]ustny the becm cutomctcclly cs the
termncls move cround the covercye crec.

"MlMD" (Multple lnput - Multple Dutput) s cn Advcnced Antennc Technoloyy (AAT)
thct combnes the rcdo syncls trcnsmtted cnd receved on sepcrcte cntenncs. The
technque tckes cdvcntcye o] the multple pcths cnd re]lectons o] c rcdo syncl to
strenythen rcdo communcctons, pcrtculcrly n densely populcted crecs where syncls
ccn be deyrcded by buldnys cnd other physccl obstccles.
AIcateI-Lucent's customers IncIude:

DNEhAX, a new broadband wIreless access provIder servIng the 0omInIcan FepublIc, and
AlcatelLucent announced the launch of the world's fIrst commercIal WI|AX Feve network In
the J.5 CHz spectrum band, whIch was also the fIrst commercIal Feve network In the
AmerIcas. 0urIng an event In Santo 0omIngo markIng the InauguratIon of DNE|AX's commercIal
network, AlcatelLucent performed on the network, the world's fIrst mobIle handoffs.
SubscrIbers on the new network took part In the groundbreakIng mobIle broadband servIces
InvolvIng delIvery of vIdeo telephony, hIghdefInItIon streamIng vIdeo, mobIle broadband
nternet access and voIce over P.
Far EasTone, one of TaIwan's leadIng mobIle servIce provIders, has awarded AlcatelLucent
the largest share of the most extensIve WI|AX deployment In TaIwan vIa two contracts to
support the delIvery of mobIle broadband servIces along a major freeway lInkIng TaIpeI cIty
wIth Taoyuan nternatIonal AIrport. The new network wIll enable users In vehIcles to access
the nternet and take advantage of multImedIa applIcatIons such as vIdeo streamIng and voIce
over P.
rasII TeIecom, one of the bIggest mobIle and fIxed telephony operators In 8razIl, has selected
AlcatelLucent to deploy the country's fIrst commercIal WI|AX Feve networks In the cItIes of
So Paulo, CurItIba and Porto Alegre. These networks wIll enable 8rasIl Telecom to dIstrIbute
stateoftheart servIces In areas that today do not have access to many of the servIces those In
more urban areas take for granted.
TeImex, the leadIng telecom operator In |exIco and one of the largest In LatIn AmerIca,
awarded AlcatelLucent a major contract to deploy LatIn AmerIca's fIrst commercIal unIversal
WI|AX network In ChIle. The new network wIll enable Telmex to provIde full coverage for
corporate and resIdentIal customers In 24 major cItIes In ChIle, gIvIng them onestop access to
broadband wIreless applIcatIons such as hIghspeed nternet, vIdeo streamIng and 7oP usIng
theIr laptops, computers, modems or WI|AX termInals.
n France, SH0 (SocIt du Haut 0bIt), a joInt venture between SFP and Neuf
CegeteI, awarded a twoyear contract to AlcatelLucent for the supply and InstallatIon of the
fIrst WI|AX Feve network In France. AlcatelLucent has equIpped the planned sItes of SH0's
WI|AX network In the ledeFrance (0F) and ProvenceAlpesCote d'Azur (PACA) regIons. The
agreement consolIdates the strong exIstIng relatIonshIp between AlcatelLucent and SFF, whIch
also awarded AlcatelLucent a JC contract, usIng the WI|AX network as a complement to Its
JC offer.
Synterra, a natIonal telecommunIcatIons servIce provIder In FussIa, announced a strategIc
partnershIp wIth AlcatelLucent to deploy FussIa's fIrst WI|AX Feve networks. 0eployments
wIll cover many towns and cItIes wIth an average populatIon of 100,000 InhabItants. FIrst
regIonal WI|AX networks should be operatIonal In Q4 2007. Synterra - whIch holds a natIonal
lIcense - Intends to partner wIth operators In order to cover more than 1,000 FussIan cItIes and
towns In broadband by end of 2008.
AlcatelLucent has won a contract to provIde W|AX Feve solutIon for VSE NET, a regIonal
operator In Cermany's Saar regIon, In cooperatIon wIth nquam 8roadband a natIonwIde
W|AX lIcense holder In Cermany. The network wIll brIng 7oP, hIghspeed nternet and other
data servIces to enterprIses and busInesses In the sparsely populated regIon where layIng
physIcal Infrastructure Is not the most economIcally vIable solutIon. A fIrst In Cermany, the
servIce Is set to be offered by January 2008.
Drascom TeIecom's subsIdIary hobIIInk, selected AlcatelLucent to deploy PakIstan's fIrst
lIve WI|AX Feve network. The network wIll cover major cItIes In PakIstan, IncludIng KarachI,
the natIon's fInancIal capItal and the major busIness center.

Chunghwa TeIecom, TaIwan's largest telecommunIcatIons provIder, selected AlcatelLucent to
deploy TaIwan's fIrst WI|AX Feve network. The new wIreless broadband network wIll enable
Chunghwa Telecom customers In the central commercIal dIstrIct of the densely populated
Taoyuan county metropolItan area to access applIcatIons such as hIghspeed nternet, vIdeo
streamIng and 7oP.
ACCA, Japan's leadIng provIder of 0SL servIce, has successfully tested UnIversal WI|AX In the
suburban area of Yokosuka Fesearch Park, and confIrmed Its plan to Include the urban area of
Yokohama CIty In Its testIng. ACCA Is the fIrst provIder In Japan to conduct WI|AX Feve
verIfIcatIon testIng In both suburban and urban areas, allowIng It to ascertaIn the respectIve
characterIstIcs of both types of areas.
PrImus TeIecommunIcatIons Canada Inc., the largest alternatIve communIcatIons carrIer In
Canada wIth approxImately 900,000 retaIl customers and whIch owns J.5 CHz lIcensed
spectrum In most major cItIes across Canada, have selected AlcatelLucent's WI|AX Feve
solutIon for Its fIeld and market trIals. AlcatelLucent has deployed a large scale fIeld trIal for
PrImus to evaluate applIcatIons such hIghspeed nternet access, data transmIssIon and 7oIce
Dver P (7oP). PrImus Is currently undergoIng a trIal wIth 200 selected users.
Dther references IncIude: 8ollor Telecom In France, Casema In the Netherlands,
AIrcel In ndIa, ATET In the US, Clobalcom In Lebanon, KT In Korea, |axIs In |alaysIa,
WI|AX Telecom In AustrIa, SlovakIa and CroatIa.