Far EasTone Telecom selects Alcatel-Lucent to deploy a WiMAX network to support the delivery of mobile broadband services along a major freeway in Taiwan

Paris, October 15, 2007 —Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has been selected by Far EasTone, one of Taiwan’s leading mobile service providers, to deploy a Universal WiMAX network – based on the IEEE 802.16e-2005 (or Rev-e) standard -- along a major freeway linking Taipai city with Taoyuan International Airport. The new network will enable users in vehicles to access the Internet and take advantage of multimedia applications such as video streaming and voice over IP (VoIP). This contract follows a successful field trial conducted in July 2007 and represents a major step toward the introduction of mobile WiMAX services in Taiwan.

Under the terms of the contracts, Alcatel-Lucent will provide Far EasTone with its end-to-end WiMAX Rev-e solution includingbase stations, access controllers, core network and operation and maintenance center. Alcatel-Lucent also will provide network design, installation, commissioning and optimization services for the project. The network is expected to be in operation in early 2008.

WiMAX is a flexible wireless technology that enables people to access high-speed, high-quality broadband wireless services wherever they go, providing truly “universal” wireless broadband access in fixed, nomadic and mobile environments.

“The Mobile-Freeway project is a critical part of the larger Mobile Taiwan (M-Taiwan) program and the ability of Alcatel-Lucent’s WiMAX solution to support high-speed transmission in a mobile environment will enhance the value of this important initiative to the people of Taiwan,” said Jeffey Gee, executive vice president of Far EasTone Telecom. “We selected Alcatel-Lucent because of the company’s track record as the industry leader in providing mobile WiMAX solutions to service providers around the world, as well as the excellent performance of their mobile WiMAX system during our trial during the summer. This gave us the confidence that the solution would meet our customers’ expectations.”

The Mobile Freeway project is the world’s first WiMAX deployment with support for high-speed mobility. This achievement builds on Alcatel-Lucent’s leading role in the introduction of Mobile WiMAX; Alcatel-Lucent was first to release a WiMAX product providing full mobility (March 2007).

“Our selection for this important project – following a successful field trial in the summer of 2007, highlights the maturity of our WiMAX Rev-e solution, the strength of our Open CPE Program and our compelling end-to-end offer,” said Frederic Rose, head of Alcatel-Lucent’s activities in the Asia-Pacific region. “This contract also expands our No. 1 position in the market for commercial mobile WiMAX solutions and solidifies our position as a leading wireless network supplier in Taiwan.”

Alcatel-Lucent’s Universal WiMAX solution integrates the latest technological innovations, such as “beam forming”* and MIMO**. Beam forming enables a service provider to dramatically reduce the number of radio sites needed to provide coverage – in some instances by as much as 40 percent – while reducing interferences and ensuring better indoor penetration of the radio signal. MIMO helps make radio links more robust, nearly doubling the capacity delivered in dense urban environments.

Alcatel-Lucent’s solution also supports a broad range of terminals from various customer premises equipment (CPE) partners. This is part of Alcatel-Lucent’s Open CPE Program, which is designed to promote an open device ecosystem and ensure customers have the widest possible range of interoperable end-user devices. For this project Alcatel-Lucent will work closely with local manufacturers to introduce requisite customer premise equipment (CPE), and will establish a WiMAX Application R&D Centre to support end-to-end interoperability testing with local suppliers, helping enhance Taiwan’s WiMAX ecosystem and increasing the competitiveness of Taiwan’s CPE industry.

With more than 70 pilots and deployments across the world and 15 commercial contracts signed since the beginning of 2007, Alcatel-Lucent is No. 1 in the worldwide WiMAX market.

About WiMAX:

WiMAX (802.16e-2005) stands for Worldwide Interoperability for Microwave Access. It enables Voice and Broadband connectivity for fixed, nomadic or mobile use in urban, suburban and rural areas. For more information about WiMAX: For more information about WiMAX, please click here
* “Beam forming” is an Advanced Antenna Technology (AAT) that ensures that radio power is where the WiMAX terminals are, adjusting the beam automatically as the terminals move around the coverage area.
** “MIMO” (Multiple Input – Multiple Output) is an Advanced Antenna Technology (AAT) that combines the radio signals transmitted and received on separate antennas. The technique takes advantage of the multiple paths and reflections of a radio signal to strengthen radio communications, particularly in densely populated areas where signals can be degraded by buildings and other physical obstacles.

About Far EasTone
Far EasTone is dedicated to the convergence of mobile communications and the Internet. Our aim is to provide our customers easy access to a wealth of public and personalized information, while striving to fulfill our vision in the 21st century- “Anywhere, anytime, communications to enrich the lives of people” . Holding onto the beliefs of “innovative, trustworthy and responsive”, we bring customers’ needs to a new level with our mobile and data transmission services. With Far EasTone, you will stay in touch and enjoy a quality life through cutting edge technology. For more details, please visit http://www.fareastone.com.tw/

About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end-users. As a leader in fixed, mobile and converged broadband networking, IP technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at home, at work and on the move. With operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry, and one of the largest research, technology and innovation organizations in the telecommunications industry. Alcatel-Lucent achieved adjusted proforma revenues of Euro 18.3 billion in 2006 and is incorporated in France, with executive offices located in Paris. [All figures exclude impact of activities transferred to Thales]. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com

Contact the Alcatel-Lucent Press Office: press@alcatel-lucent.com