Lucent Technologies Bell Labs Using New Zealand as Testbed for Dynamic Optimization of Mobile Communications Networks.

LAS VEGAS -- Bell Labs, the research and development arm of Lucent Technologies (NYSE: LU), today announced that it has been working with Telecom New Zealand over the last two years to trial a unique new approach to optimizing the coverage and capacity of mobile networks. This technology, called dynamic optimization, makes adjustments to Telecom New Zealand's mobile network throughout the day in response to changing traffic patterns.

Dynamic optimization, which has significant implications for mobile network operators around the world, is being tested on Telecom New Zealand's commercial 027 network in the Lower Hutt, Taranaki, Bay of Plenty and Mt. Eden regions. Lucent originally built the 027 mobile network and currently manages it for Telecom New Zealand.

"Dynamic optimization gives us an entirely new way of managing network traffic," says Mike Flanagan, Bell Labs technical manager, who is overseeing the testing. "Traditionally, communications networks are designed around a static scenario based on peak usage patterns. But of course traffic patterns are always changing. In the evenings the majority of mobile device use is at the home, during the day it is in the office area, and during rush hours along the major traffic arteries. By creating a network that can optimize itself dynamically to adjust to the changing network needs throughout the day we can enable service providers to improve quality of service related to the delivery of mobile voice and data services."

Dynamic optimization technology leverages Bell Labs' pioneering Ocelot(R) software. Bell Labs has combined Ocelot with real-time technologies that measure usage patterns and performance conditions across an entire network at any given time of day. Armed with this information, Ocelot is used to find the best network parameters to achieve optimal capacity and coverage. These network parameters include base station transmit power levels as well as programmable antenna orientation.

Currently network parameters are effectively static - they are set up once and then re-tuned on a monthly or yearly basis at best. This current project with Bell Labs involves tracking usage patterns throughout the week (weekdays and weekends) and then programming power levels and antennas to regularly modify their settings throughout the day and week to adjust to these changing usage patterns.

"We've seen some important benefits already and we see this work with Lucent and its R&D arm, Bell Labs, as keeping us on the leading edge of mobile technology development and enabling us to offer our customers the best products and services available," said Kevin Kenrick, Telecom New Zealand's General Manager Mobile. "We have already seen real benefits such as significant reductions in dropped calls and increases in network availability. We've also seen an improvement in the capacity of the network to deal with increased traffic at specific times of the day, helping us maximize our infrastructure investment."

During the trial, Bell Labs is working in cooperation with KMW Communications Inc. to use their programmable base station antennas that provide adjustable pan/tilt functionality. By changing the pan, tilt, and power output of each antenna, the system can remotely modify the network coverage topology and shift some of the traffic from congested base stations to underutilized ones by dynamically modifying each base station's coverage area. "We can 'borrow' unused capacity from areas where it isn't currently needed and direct it to other areas where demand is higher at any given time," Flanagan explains. "The result is better service and improved network efficiency."

The next phase of this research is to implement real-time dynamic optimization - where the network will continually monitor network traffic usage and be able to intuitively optimize the network in short time intervals. "Pattern modeling is very useful and a major step, but users don't always conform to those patterns," said Flanagan. "For example, when there is a specific event like a traffic jam or a big rugby game there is a big spike in mobile phone calls in a concentrated area. Traditional network design can't cope with those changes in network usage very well."

Real-time dynamic optimization will also provide subscribers with more reliable service. For example, if a base station were to be damaged in an event like a natural disaster, in a real-time dynamically optimized network, the network would automatically adjust to extend coverage to the affected area and fill the gap.

Lucent New Zealand general manager Jonathan van Smit says that the trial is an excellent example of the way Lucent's agreements deliver benefits to both companies. "This is a really exciting example of New Zealand being used as a testbed for the most innovative technologies by bringing together Bell Labs, Lucent, and Telecom New Zealand. We're thrilled to be working with Telecom New Zealand on this project and believe that we are together pioneering the future of mobile networks."

Lucent is showcasing its customized network optimization solutions such as dynamic optimization in its booth (#1806, Hall C3) at the Cellular Telecommunications and Internet Association (CTIA) Wireless 2006 show, taking place here this week.

About Telecom New Zealand

Telecom New Zealand is New Zealand's largest listed company. It is listed in New Zealand, Australia and on the New York Stock Exchange. Telecom New Zealand supplies fixed line, wireless and IT services and solutions to customers in New Zealand and Australia. In New Zealand Telecom New Zealand operates a CDMA network and launched 3G services in November 2004. For further information visit www.telecom.co.nz.

About Bell Labs

Bell Labs, the R&D division of Lucent Technologies, is the leading source of new communications technologies. It has generated more than 30,000 patents since 1925 and has played a pivotal role in inventing or perfecting key communications technologies, including transistors, digital networking and signal processing, lasers and fiber-optic communications systems, communications satellites, cellular telephony, electronic switching of calls, touch-tone dialing, and modems. Bell Labs scientists have received eleven Nobel Prizes in Physics, nine U.S. National Medals of Science and eight U.S. National Medals of Technology(R). For more information about Bell Labs, visit its Web site at www.bell-labs.com.

About Lucent Technologies

Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. For more information on Lucent Technologies, which has headquarters in Murray Hill, N.J., USA, visit http://www.lucent.com.