Japan Telecom and Alcatel Achieve Compliance With Point to Multipoint Radio Standards in Japan.

Business/Technology Editors

PARIS--(BUSINESS WIRE)--Dec. 12, 2000

Major Asian telecommunications service provider evaluating tested

Alcatel LMDS for fixed wireless access

Alcatel (Paris:CGEP.PA) (NYSE:ALA) and Japan Telecom, one of Japan's largest telecommunications groups, are collaborating on an initiative to explore Alcatel's point to multipoint broadband wireless access system and market applications.

Delivery of the Alcatel LMDS (local multipoint distribution system) solution for this multi-phased initiative, which includes a field trial agreement, was completed in September 2000.

Alcatel LMDS is a fixed broadband wireless network that can be quickly deployed enabling service providers to cost-effectively deliver high speed Internet, data, and voice services to business customers. The solution provides fiber-equivalent bandwidth that effectively bypasses the traditional local loop, offering service providers such as Japan Telecom an alternative method to access its customers.

Japan Telecom has been conducting rigorous field trials of both the base station and customer premises equipment of the Alcatel LMDS solution. The solution includes dynamic bandwidth allocation (DBA) which will enable Japan Telecom to maximize its spectrum allocation by dynamically sharing bandwidth among multiple customers.

In close collaboration with Japan Telecom, Alcatel implemented all the necessary product adaptations to ensure compliance with Japanese radio standards.

"We are excited to be working with Japan Telecom to explore the benefits that the Alcatel LMDS solution has to offer to the Japanese market," stated Jean-David Calvet, Executive Vice-President, fixed wireless, Alcatel. "Collaboration with such a highly-respected and innovative telecommunications service provider will allow us to further enhance our technology and maintain Alcatel's status as the international broadband wireless solutions provider of choice."

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: www.alcatel.com.

The comprehensive Alcatel LMDS solution, deployed for more than 100 customers worldwide, is a multiservice broadband wireless network comprised of base station and customer premises equipment, and network and service management. A base station, consisting of digital modulation equipment with optional switching capabilities and point-to-multipoint transmitters and receivers, is the central location that collects all traffic to and from customers within a given wireless coverage area. The base station is also the linking point between the customer and the network backbone. Customer premises equipment includes radio termination (RT) transceivers and network termination (NT) units, which support a full range of services. The network and service management suite supports complete end to end management of both the wireless and wireline portions of the network, providing a full range of billing, statistics and maintenance support.