Alcatel Telecom introduces ADSL Technology using an ATM platform for enhanced Internet and other services.

RICHARDSON, Texas--(BUSINESS WIRE)--June 24, 1996--Alcatel Telecom now offers carriers a revolutionary way to deliver extremely fast Internet and other services using their existing copper-based, twisted-pair telephone lines -- the type of line installed in almost every home in the United States.

For the first time in the industry, Alcatel Telecom has combined ATM (asynchronous transfer mode) and DMT (discrete multi-tone) technologies to create the Alcatel 1000ADSL (Release 2.0), which Alcatel is introducing at Supercomm '96 at the Dallas Convention Center (June 25-27, Booth 7266, Hall A).

The Alcatel 1000ADSL uses "asymmetrical digital subscriber line" (ADSL) technology in a way that gives carriers ATM as an end-to-end (network to subscriber) transport means. Industry experts recognize ATM as the "way of the future" for Internet, video on demand, and other multimedia services. Furthermore, the American National Standards Institute (ANSI) recently declared DMT modulation the preferred ADSL standard.

ADSL was created to take advantage of existing copper plant to deploy new services fast and with limited upfront investment. Several operators around the world are using ADSL technology in their trial networks to deliver multimedia services to the home and office.

"We have one of the few standards-based modulation schemes in the ADSL arena. While many are using proprietary CAP-16 modulation, Alcatel Telecom has DMT technology today," said Krish Prabhu, President, Broadband Products Division, Alcatel Telecom. "Our use of ATM transport and DMT guarantees support of existing and future services and provides a robust system required for the reuse of existing copper lines for broadband services."

The Alcatel 1000ADSL dramatically improves Internet connections because it offers a "downstream" (network to subscriber) data rate hundreds of times faster than current modem technology and a high-speed "upstream" (subscriber to network) access channel. The new Internet and multimedia services have been plagued by a lack of access bandwidth (typically limited today by 14.4 or 28.8 kbit/s modems). The Alcatel product increases this access speed several fold to eliminate the long delays downloading video and graphics files encountered currently by Internet users.

Alcatel's ADSL solution offers both speed and power rate adaptations, another combination unique to the industry. The DMT technology enables the ATM transfer rate to adjust its speed due to varying line conditions and external interference. The DMT modem also automatically reduces power in the presence of line interference -- a key advantage for a carrier as it ensures that the introduction of ADSL will not degrade existing services.

Alcatel Telecom has conducted successful testing of its ADSL system with Advanced Telecommunications Modules Limited (ATML), of Cambridge, England. At Supercomm '96, the two companies are demonstrating a complete server-to-terminal network link. The exhibit will feature a personal computer connected to the ADSL modem with an ATM Forum 25.6 Mbit/s plug-in board. Alcatel and ATML have verified 5 Mbit/s Internet access and the transmission of real-time video over this link.

Available fourth quarter 1996, the 1000ADSL system is part of the Alcatel ATM access network product portfolio. This portfolio includes fiber-to-the-home, fiber-to-the-curb and HFC (hybrid fiber co-ax). In addition to high-speed residential Internet access, initial applications for the 1000ADSL system include telecommuting options for business. Alcatel is offering all the necessary subscriber equipment for these applications as a complete package. This includes the ADSL modem, the plug-in board for the computer, and the accompanying software driver to run existing Internet applications without modification.

"The approach Alcatel is taking with this ADSL system adds a new dimension to Alcatel's traditional role of equipment provider, namely, supporting network and service providers in the definition of end-to-end service and network solutions," said Mr. Prabhu. "In this role, Alcatel has gained significant expertise in the areas of on-line and multimedia services, including video on demand."

Alcatel Telecom independently developed the ATM/DMT chip set for the 1000ADSL and will sell the chip set as a separate product. Alcatel is using standards-based DMT technology and pursuing interoperability with other DMT-based ADSL vendors. Alcatel also is using its extensive research facilities and experience in state-of-the-art microelectronics to develop a full family of xDSL products that will offer higher speeds on shorter loops or different mixtures of upstream and downstream speeds. As these products would evolve from the current ADSL product, the transition to other xDSL technologies (such as VDSL), if required, would involve minimal changes to the installed network and the operating and management systems.

Alcatel Telecom activities in North America include the design, manufacture and service of a full line of voice, data, video and multimedia telecommunications products -- such as ATM switching systems, digital cross connects, fiber optic transmission systems, optical amplifiers, microwave radios, wireless communications switches, video codecs, and network management systems. The telecommunications and broadcast industries, private operators and corporations use these products to create high performance networks. The worldwide operations of Alcatel Telecom make it one of the world's leading communications equipment manufacturers. Alcatel Telecom is part of the Alcatel Alsthom group, which maintains its headquarters in Paris. Alcatel Alsthom trades on the NYSE as ALA.

CONTACT: Alcatel Telecom, Richardson

Michael Newsom, 214/996-7896

or Internet: [e-mail]