Washington, D.C., April 27, 2009 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has inked two framework agreements valued USD 1.7 billion in total with China Mobile and China Telecom, to provide network upgrades, integration and maintenance services in 2009. As the leading operators in China, China Mobile and China Telecom were granted 3G licenses in January 2009, for TD-SCDMA and CDMA/EV-DO technologies, respectively. The agreements were secured through Alcatel-Lucent Shanghai Bell, Alcatel-Lucent's Chinese flagship company.
The contracts were signed today in Washington D.C. in the presence of Li Yue，Vice President of China Mobile, Wu Andi, Chief Financial Officer of China Telecom and Mary Chan, President, Alcatel-Lucent's 4G/LTE end-to-end solutions and Dave Geary, President of Alcatel-Lucent's Wireline networks activities.
Under an agreement valued approximately USD 1 billion with China Mobile Alcatel-Lucent will provide its industry-leading GSM/EDGE solutions, TD-SCDMA wireless networking equipment, optical, microwave and IP transmission offerings, IP service routers, application platforms and related services.
In a comparable agreement with China Telecom, valued at approximately USD 700 million, Alcatel-Lucent will supply its 3G CDMA/EV-DO networking equipment, application platforms, optical and IP transmission platforms, IP service routers and network maintenance services to support the rollout of the company's 3G wireless broadband network.
Leveraging Alcatel-Lucent's industry leading technologies and solutions, China mobile and China Telecom will be able to further enhance their network capacity and performance, helping them provide end-users with a wide variety of high-quality mobile services.
"We are honoured to have been selected as a major provider of cutting-edge solutions for China Mobile and China Telecom. Alcatel-Lucent Shanghai Bell is fully committed to supporting their rapid transformation to 3G, and their smooth evolution to LTE/4G in the future", said Olivia Qiu, head of Alcatel-Lucent activities in East Asia and President of Alcatel-Lucent Shanghai Bell. "The agreements also set the stage for future collaboration with these customers on the ongoing improvement of their networks."
China Mobile and China Telecom are two strategic partners of Alcatel-Lucent in China. At the end of 2008, a consortium led by Alcatel-Lucent Shanghai Bell and Datang Mobile won the largest share in China Mobile's tender for the second phase of its TD-SCDMA mobile network trial. Also in 2008, China Telecom selected Alcatel-Lucent Shanghai Bell for a USD 230 million upgrade of its CDMA mobile network.
These agreements build on Alcatel-Lucent's established position as a leading 3G supplier in China. China Unicom, a leading fixed and mobile service provider in China, recently selected Alcatel-Lucent to deploy 3G W-CDMA networks in 14 Chinese provinces.
Alcatel-Lucent is a leading player in the wireless infrastructure market having deployed 350 commercial wireless networks worldwide. Alcatel-Lucent's pioneering multi-standard base station (with more than 665,000 units shipped since 1999) is designed to support IP transformation and is part of our unique converged radio access network (RAN) strategy that enables operators to smoothly evolve towards future mobile broadband technologies. Alcatel-Lucent is the leading CDMA/EV-DO vendor with global market share of more than 42 percent in 2008. Additionally, the company has been the industry's leading optical vendor since 2001, is #2 in the IP/MPLS Service Provider edge routing market with 19 percent market share in 2008, and is a world leader in the design, deployment, management and integration of networks.
About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of service providers, enterprises and governments worldwide, providing solutions that to deliver voice, data and video communication services to end-users. A leader in fixed, mobile and converged broadband networking, IP technologies, applications and services, Alcatel-Lucent leverages the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries and the most experienced global services organization in the industry, Alcatel-Lucent is a local partner with a global reach. Alcatel-Lucent achieved revenues of Euro 16.98 billion in 2008 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com
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