China Mobile selects Alcatel for nationwide IP network deployment

Paris, November 24, 2006 - Alcatel (Paris: CGEP. PA and NYSE: ALA) today announced that it been awarded a full-scale, nationwide IP network deployment project by China Mobile Communications Corporation, the largest mobile communication services provider in China. The deployment of Alcatel’s industry-leading IP routing solution will enable China Mobile to accelerate the delivery of IP-based premium voice and multimedia services to its customers. The project was won through Alcatel Shanghai Bell, Alcatel’s Chinese flagship company.

In this project, Alcatel will deploy its industry-leading Alcatel 7750 Service Router and Alcatel 5620 Service Aware Manager in 13 densely-populated provinces and municipalities of China including: Beijing, Shanghai, Guangdong, Shanxi, Anhui, Gansu, Ningxia, Liaoning, Guizhou, Guangxi, Hunan, Jilin and Hainan.

Alcatel’s highly reliable IP-based infrastructure will enable China Mobile to reduce operational complexity while increasing bandwidth. As a result, subscribers will be able to enjoy a range of new services including Voice over IP and multimedia services.

"Service providers are looking for solutions that will simplify operations and provide a differentiating architecture to effectively deliver services" said Gerard Dega, President of Alcatel Shanghai Bell. "By combining our thorough understanding of the Chinese market and expertise in deploying a state-of-the art IP solution, we will help China Mobile to bring the most flexible, scalable and highest quality services to its customers"

Today, all the major Chinese operators including China Mobile, China Unicom, China Telecom and China Netcom, and spanning 29 provinces of the country, have selected Alcatel’s IP solution. Worldwide, Alcatel’s IP portfolio has been selected by more than 150 service providers in over 65 countries, including massive, multi-year IP network and service transformation projects at AT&T, BT, Cable & Wireless, and Telstra. According to Synergy Research Group, Alcatel was #2 in the Services Edge Router category in Q3 2006, with 19% market share. Alcatel is involved in more than 40 triple play projects and another 40 network transformation projects worldwide.

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. For more information, visit Alcatel on the Internet: http://www.alcatel.com

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Mark Burnworth

Corporate Media Relations

Alcatel

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