Alcatel Signs 65-Million Euro Network Contract in India; Largest Single Switching Contract Awarded by BSNL to Expand Network and Introduce Broadband Services.

Business Editors & High Tech Writers

DALLAS--(BUSINESS WIRE)--April 4, 2002

BSNL, the Indian incumbent telecommunications service provider, has signed a 65-million euro contract with Alcatel (NYSE:ALA) to implement a major expansion and modernization of BSNL's fixed network. This contract is the largest single switching contract awarded by BSNL to a network manufacturer.

Alcatel's solution will enable BSNL to expand its network by more than one million lines and to offer voice, integrated services digital network and asymmetric digital subscriber line services in India. This expansion meets the Indian government's objectives to increase the country's teledensity and to provide new services.

Alcatel will supply its next generation switching solutions based on the Alcatel 1000 family, enabling BSNL to pave the way for a smooth migration of its existing network toward next generation networks. Deliveries have already started, and contract implementation is to be completed by September 2002.

"In India's developing market, BSNL will play an important role and contribute significantly to the telecommunications deployment," said Ludwig De Maeyer, Alcatel's president for Voice Networks. "By extending our cooperation with BSNL, we demonstrate our commitment to helping service providers successfully enhance their existing networks and offer new revenue generating services."

Alcatel is the leading supplier of switching solutions in India with a more than 40 percent market share.

With more than 300 million lines delivered worldwide on digital switching systems, Alcatel connects one out of five telephone subscribers in the world.

About Alcatel

For more information, http://www.alcatel.com