Alcatel Unveils the Next Chapter in DSL Deployment; Ultra-Density Alcatel 7300 ASAM Brings Further Cost Improvements, Opens Door to High-Value DSL-Based Services.

Business/High Tech Editors

DALLAS--(BUSINESS WIRE)--Jan, 16, 2002

Alcatel (NYSE:ALA), the leader in digital subscriber line (DSL) technology, today announced a suite of feature enhancements to the Alcatel 7300 Advanced Services Access Manager (ASAM), the world's most widely deployed broadband network access platform.

These upgrades ideally position the Alcatel 7300 ASAM to further boost carriers' revenue generation, operational efficiency and premium service development -- while lowering overall capital expenditure. Furthermore, through enhanced subtending capabilities, the benefits of these upgrades are available to service providers with 'heritage' Alcatel DSL networks based on the Alcatel 1000 ASAM.

Marking the first major deployment of the enhanced Alcatel 7300 ASAM, France Telecom announced in early January 2002 that it had selected Alcatel as its worldwide supplier of DSL equipment. France Telecom will use the ultra-density platform to offer asymmetric and symmetric DSL services across both its domestic and international activities.

"At a time when cost containment is the carriers' watchword, Alcatel continues to define long-term investment protection in the DSL marketplace," said Ron Westfall, Principal Analyst, Broadband Infrastructure, of Current Analysis, a competitive response solutions firm. "The Alcatel 7300 ASAM's ability to offer a variety of services, addressing different markets from a unified platform, is a cornerstone of the successful service provider's business model. In addition, for operators with an Alcatel ASAM installed base, these feature enhancements open the next chapter of high-value broadband service deployment."

Benefits of the enhanced Alcatel 7300 ASAM include:

-- Reduced Operational Expenditure: Double density asymmetric and

symmetric DSL line cards optimise the Alcatel 7300 ASAM's

physical footprint, while lower power consumption reduces

operating cost. This enables the Alcatel 7300 ASAM to support

up to 1,152 lines per 300mm ETSI(a) rack or 1,296 lines per 12

inch ANSI(b) rack, the highest density available in the

industry. Upgrading existing systems is simple, enabling

operators to fully leverage their ASAM installed base with

minimal incremental investment.

From the customer premises to the core network, the Alcatel

5620 Network Manager can oversee each service subscription

connected to the Alcatel 7300 ASAM via the 5526 AMS and 5523

Element Managers in ANSI and ETSI markets respectively,

lowering provisioning costs by fully automating the

configuration process on each DSL line. Through its single

interface, the Alcatel 5620 improves the accuracy rate of

successfully provisioning thousands of individual circuits

across a complete end-to-end network.

-- Expanded broadband coverage: Meeting increased DSL service

coverage and bandwidth demands, Alcatel has introduced two new

ETSI versions of the Alcatel 7300 ASAM for deployment in

remote locations. These new versions complement the existing

Alcatel Litespan digital loop carrier (DLC) and outdoor

cabinet solutions that have been available in ANSI markets for

some time:

The Alcatel 7300 ASAM-c (compact version) is a self-contained

single-shelf solution for indoor environments, providing

extended reach in outlying areas. The Alcatel 7300 ASAM-o

(outdoor version) supports up to 192 lines and is suitable for

deployment in a controlled environment vault or streetside

cabinet.

Both versions are designed for the ETSI market and have the

same enhanced functionality as the ETSI central office Alcatel

7300 ASAM.

Cost effective optical connectivity from the Alcatel 7300

ASAM-c or 7300 ASAM-o to the central office system brings DSL

services closer to business and residential subscribers in

outlying areas, delivering full bandwidth over dark fiber or

existing transmission infrastructure.

-- Business Access Quality of Service: Asynchronous Transfer Mode (ATM)-based
multiple Qualities of Service, including guaranteed frame rate (GFR), provide
the building blocks for business-critical broadband service level agreements
rigorously enforced through integral performance monitoring. The Alcatel 7300
ASAM enables operators to address business and residential subscribers from a
single platform, cost-effectively targeting all customer segments with tailored
service bundles.

-- Internet Protocol service versatility: In addition to its asymmetric,
symmetric and voice-over-DSL capabilities, the Alcatel 7300 ASAM now includes a
multiservice Internet Protocol Services Module (ISM) to complement its solid
ATM foundation. The ISM features an IP processing engine that enables the
Alcatel 7300 ASAM to interface directly with packet edge networks. This brings
higher-value, IP-based services such as video on demand, online gaming and
music download closer to the DSL subscriber, and cuts the need for costly
content retrieval from the network core. The ISM enhances service delivery
network scalability and reduces operational expense by performing session
aggregation and service selection from within the access network. The ISM is a
simple plug-in option that carriers can deploy as demand for these services
materializes.

"The enhancements we have introduced strengthen the position of the Alcatel 7300 ASAM as the world's most widely deployed broadband access platform," said Michel Rahier, president of Alcatel's Broadband Networks activities. "This is a further statement of Alcatel's intent: to lead the broadband access market through continuing partnership with the world's largest service providers."

For more information on the enhanced Alcatel 7300 ASAM, visit www.alcatel.com/dsl.

(a) ETSI: European Telecommunications Standards Institute (b) ANSI: American National Standards Institute

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 sales of EURO 27 billion in 2000 and 110,000 employees, Alcatel operates in more than 130 countries. For more information http://www.alcatel.com.