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Vodafone Portugal selects Alcatel-Lucent DSL network solution

Vodafone Portugal‘s first wireline broadband network will support expansion strategy

Sydney, 25 June 2007 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced it has been selected by Vodafone Portugal for the implementation of a triple play-capable network solution to provide DSL-based services. In the first phase of the three-year frame agreement, Vodafone Portugal will leverage the Alcatel-Lucent solution to provide high quality broadband services including high speed Internet and voice to residential customers, in what is the first wireline broadband network for the operator.

Vodafone Portugal has deployed Alcatel-Lucent‘s TPSDA (triple play service delivery architecture) that combines access and subscriber service delivery into an integrated DSL solution, as well as its next generation converged solutions. The Alcatel-Lucent TPSDA will enable Vodafone Portugal to deliver on its customers‘ total communications needs by complementing its existing mobile services portfolio with wireline朾ased high quality interactive services.

"Implementing a DSL network based on state of the art broadband and converged solutions was key to adapt our offerings to meet changing and more demanding customer needs," said Miguel Martins, Vodafone Portugal‘s Chief Technology Officer. "At Vodafone Portugal, we are committed to offering our customers over-the-top communication experiences. For this we rely on Alcatel-Lucent‘s experience and leadership in the wireline and convergence markets to deliver the highest quality, most advanced DSL services to our customers."

"Being able to provide the network framework, technology elements and global deployment expertise to help Vodafone Portugal realise its strategic vision for market growth and network transformation is of particular importance to Alcatel-Lucent," said Olivier Picard, President of Alcatel-Lucent‘s Europe & South activities. "The frame agreement confirms Alcatel-Lucent as the partner of choice for operators in their strategic transformation projects."

Alcatel-Lucent has supplied its Intelligent Services Access Manager (the industry‘s most deployed IP access platform for triple play), and its Network Analyser and Home Network Management solution (for the management of devices deployed in customer homes and businesses). It has also deployed its next generation Service Router along with the Service Aware Manager and the Access Gateway Controller.

Alcatel-Lucent has unparalleled experience in the deployment of end-to end-triple play network transformation projects worldwide and is currently involved in more than 40 triple play projects and more than 40 network transformation projects worldwide. In addition to voice and data services, Alcatel-Lucent‘s innovative and interactive Triple Play/IPTV applications enable the use of a TV set connected over the broadband network as a unique device for blending entertainment and communication (including TV, Video-on-Demand, web browsing, communication control, interactive voting, user generated content and media share).

Alcatel-Lucent is the uncontested market leader in broadband access with more than 133 million DSL lines shipped to date and a 41% market share according to industry analyst firm Dell‘Oro. According to Ovum-RHK, Alcatel-Lucent was #2 in the IP/MPLS Edge market segment in Q4 2006, with 19% market share.