Alcatel Introduces Breakthrough DSL Platform.

Business/Technology Editors

RALEIGH, NC--(BUSINESS WIRE)--April 26, 2000

Alcatel's Next Generation ASAM Provides a High Performance

Solution for Voice, Data, and Video Services for both Business and

Residential Subscribers

Today Alcatel (ALA), the world leader in DSL (Digital Subscriber Line) solutions announces the successor to the market-leading Alcatel 1000 ASAM (ATM Subscriber Access Multiplexer). Available May 2000, Alcatel's new ASAM, the breakthrough multi-service platform will further enable service providers to cost-effectively deploy additional revenue-generating services to both business and residential subscribers.

Alcatel's next generation ASAM initially supports up to five times the number of lines of Alcatel's current generation product, increasing to nearly ten times the number of lines in the near future. Furthermore, it delivers advanced functionality that enables service providers to quickly and cost-effectively provision an extensive assortment of broadband services.

To date the unprecedented growth in DSL has been driven by demand for high-speed Internet access. However, high-speed Internet service alone will not differentiate a service provider enough to capture and retain customers in a competitive environment. To effectively compete, service providers need a broadband multi-service platform that enables them to offer a range of compelling services to a diverse base of business and residential subscribers. Alcatel's new ASAM has the advanced functionality to meet their ongoing needs.

Alcatel's new ASAM's advanced ATM functionality includes support for multiple Quality-of-Service classes as well as support for switched virtual circuits (SVCs), simplifying network provisioning. The new ASAM also supports all key industry-standard DSL services including multi-mode ADSL (splitterless full-rate G.dmt and lower-speed G.lite), as well as standards-based symmetric DSL services such as HDSL2 and G.shdsl as well as multiple voice channels over DSL (VoDSL). These features allow service providers to offer a wide variety of value-added services for applications such as telecommuting, virtual private networks, toll-quality voice lines over DSL, and video, over a single copper pair with the existing infrastructure.

Alcatel's next generation ASAM delivers the industry's best balance of performance, density, and power consumption. With density tripled to 432 multi-mode ADSL lines per rack (384 lines in ETSI equipment practice) including splitters, and with power consumption decreased to an unprecedented 1.6 watts per ADSL line, a service provider is able to serve more customers in a smaller space in the central office at a lower overall cost. Furthermore, a fully populated rack complies completely with NEBS power restrictions of 700 watts per rack. An optional shelf configuration without splitters can increase the line density in the rack by an additional fifty percent.

"Alcatel's new ASAM delivers the advanced functionality required to meet the demands of both business and residential subscribers," said Matt Davis, Senior Analyst at the Yankee Group. "The functionality of the platform reflects Alcatel's vast experience in large-scale, carrier-class DSL deployments, and raises the bar for DSLAM capacity worldwide. This product allows Alcatel to successfully address new market segments."

With over 2.4 million central office lines shipped worldwide since its launch in 1996, the Alcatel 1000 ASAM is the world's most widely deployed DSL service platform, having over fifty percent market share, three times that of the nearest competitor. Being a direct descendant of the Alcatel 1000 ASAM, the new ASAM can be seamlessly integrated into existing Alcatel DSL networks. The new ASAM shelves can be mixed with existing Alcatel 1000 ASAM shelves to create a single system that delivers enhanced functionality while preserving past investment, all managed by a common element management system.

Alcatel's DSL solutions are available in a full complement of remote deployment packages, allowing service providers to reach all potential DSL subscribers in their service area. Options include the ASAM high-density central office solution serving up to 2,500 lines (2,300 lines in ETSI equipment practice) off of a single network interface, the Litespan multi-service access platform ? the industry's most widely deployed integrated NGDLC-DSLAM access platform, and compact environmentally hardened DSLAM packages (RAM and mini-RAM) used for low-density subscriber situations, including multiple dwelling unit and high-rise office building applications. This broad variety of deployment options allows service providers to quickly achieve ubiquitous coverage and gradually extend capacity at the pace of growing demand. By using subtending of remote shelves, Alcatel's new high-density ASAM can support up to 5,000 lines on a single network interface, all managed as a single network element.

Its future-proof 6 Gbps back plane will allow Alcatel's new ASAM to deliver exponentially more bandwidth to continue to meet the requirements of end users through new network interfaces supporting up to OC-12/STM-4 connections and new line cards, including VDSL. At the same time, its modular architecture enables IP-server integration, bringing the access to IP related services closer to the customer.

"Alcatel's new ASAM product is the fourth generation of our extremely successful DSL platform," said Martin De Prycker, President of Alcatel carrier data activities. "With unprecedented density and scalability, it is designed for mass market deployment, bringing broadband Internet access to all 400 Million Internet users of today. This next generation product will enable service providers worldwide to offer new, revenue producing services today, making them even more competitive."

About Alcatel DSL

Alcatel is the leader in DSL access with market leadership in its ASAM and Litespan family of products. The leading supplier of DSL systems with more than 55 percent of the worldwide market, Alcatel has been supplying industry-standard end-to-end ADSL solutions since 1996. Alcatel's DSL solutions are fully scalable and are available on a variety of service platforms, including integrated DSL for the Litespan next generation digital loop carrier. Alcatel's Litespan multi-service access platform, a combined Next Generation Digital Loop Carrier -- DSLAM has an embedded footprint of 40 Million subscribers.

The Alcatel DSL family supports a wide variety of service packages, including asymmetric and symmetric offerings. It is fully NEBS Level 3 compliant, and can be seamlessly collocated to provide excellent density, power utilization and heat dissipation in collocation environments. It also supports full-rate discrete multi-tone (DMT) ADSL as well as reduced rate G.lite ADSL on a single Central Office line card. Both the Alcatel ASAM and Litespan are seamlessly managed through a single element manager, the Alcatel AMS -- Access Management System.

About Alcatel

Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of EURO 23 billion in 1999, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.usa.alcatel.com (US site) http://www.alcatel.com (Corporate site)