Alcatel Brings Carrier-Class to Internet Protocol Core Networks; Alcatel 7770 Optical Broadband Exchange First IP Core Router Built to Make Carrier IP Networks Profitable.

Business Editors & High Tech Writers

DALLAS & OTTAWA--(BUSINESS WIRE)--Nov. 18, 2002

Alcatel (NYSE:ALA), a worldwide leader in carrier-class network infrastructure solutions, today announced the most cost-effective core IP/MPLS (Internet Protocol/MultiProtocol Label Switching) solution available: the Alcatel 7770 Optical Broadband Exchange (OBX), designed to radically improve reliability, scalability and the economics of IP networking.

"We tested the Alcatel 7770 platform as the next generation carrier-class core router for its ability to offer premium and differentiated IP services, safeguarding our investments in the edge," said Chang Wai Leong, director, IP Business-Global Market, SingTel. "We were impressed by the Alcatel core router and believe it delivers a future-proof investment for an IP core that converges voice, mobile and data at a lower cost."

Network Strategy Partners (NSP), in its newly published paper, "Reliable IP Nodes: A Prerequisite to Profitable IP Services," provides a quantitative risk analysis and an economic analysis of the effect of reliable IP nodes on carrier profitability. "Today's IP infrastructure burdens carriers with unpredictable performance, despite expensive and complex workarounds," said Susan Almeida, NSP's co-founder and managing partner. "We found in our study that a reliable IP node architecture -- such as the Alcatel solution -- stands to boost carrier profitability by dramatically reducing annual downtime costs, eliminating the substantial 'parallel network tax' of today's dual-router configurations, and gaining additional revenues by removing reliability as a barrier to mainstream adoption of "tight-SLA" IP services like IP-VPNs, voice, and video."

The Alcatel 7770 OBX delivers true telco-grade reliability, based on the Alcatel Carrier Environment Internet System (ACEIS) -- an essential component of building five nines (99.999 percent) reliability into IP core networks. In addition, unparalleled scalability from 100 Gbps to 1.9 Tbps of line capacity means the 7770 OBX will grow in line with IP service provider networks for significantly longer than existing routers.

"The Alcatel concept of a 15- to 20-year life cycle for a router is unheard of in the industry, and as an established vendor with a global presence, I think Alcatel will give service providers a good reason to reconsider their current network architecture," said Mark Bieberich, senior analyst, Yankee Group.

The Alcatel 7770 OBX was designed specifically for true carrier-class networking -- a turning point for the Internet core. With its combined scalability and ACEIS technology, operators can avoid spending up to 50 percent more for the same network performance. Higher service availability and performance ensure premium revenue opportunities, which are further enhanced by superior traffic management capabilities. Building on the strengths of the Alcatel 7770 product line technology, the OBX brings to market an optimized modularity and central office practicality.

"Alcatel has leveraged its expertise in delivering carrier-grade voice and data networks to now deliver that guaranteed reliability to IP networks," said Michel Rahier, president of Alcatel's broadband networking activities. "As the world migrates to all-broadband networks, Alcatel, as the worldwide broadband leader, can deliver the solutions that enable an extensive range of premium voice, mobile and data services which business and consumers want and will pay for."

The Alcatel 7770 OBX is part of a comprehensive portfolio of carrier grade data and next generation voice products, managed by Alcatel's industry-leading network and service management portfolio, which enables a seamless end-to-end platform for delivering the latest business and residential services.

For more product information, www.alcatel.com/bnd/7770_OBX

About Network Strategy Partners

To review the NSP paper, www.nspllc.com. NSP helps service providers, enterprises, and equipment vendors make strategic decisions, mitigate risk and affect change through business and technology consulting engagements. NSP's consultants are thought-leaders in the networking industry and influence its direction through confidential engagements for industry leaders and through public appearances and trade magazine articles. These interactions assure NSP's clients that they will be among the first to know the latest industry concepts and emerging technology trends. NSP's consultants combine advanced academic degrees with practical business, financial analysis, and engineering experience. Contact NSP at www.nspllc.com or Laurie Leone at 203/840-9164 or [e-mail].

About Alcatel

Alcatel designs, develops and builds innovative and competitive communications networks, enabling carriers, service providers and enterprises to deliver any type of content, such as voice, data and multimedia, to any type of consumer, anywhere in the world. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimizing their service offerings and revenue streams. With sales of Euro 25 billion in 2001, Alcatel operates in more than 130 countries. For more information, http://www.alcatel.com.