BT and Alcatel-Lucent Sign Agreement to Enhance 21CN Bandwidth Capacity

By Alcatel-lucent, PRNE
Monday, May 3, 2010

Increased Bandwidth and Flexibility to Support Video-Rich Content and Applications Growth

PARIS and LONDON, May 4, 2010 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced
it has signed a major five-year agreement with BT ( for
an evolution of its 21st Century Network (21CN) (, the foundation of BT's IP
transformation to enhance customer experience and accelerate time-to-market
for next generation services.

Leveraging Alcatel-Lucent's High Leverage NetworkTM (HLN)
( architecture and transformational
services, this project will further evolve BT's infrastructure, enabling the
company to expedite network convergence, increase capacity and deliver
content cost effectively as it prepares to introduce new video-rich services
to an expanded base of wholesale and retail subscribers.

While allowing its customers in more than 170 countries to
benefit from the development of 21CN, this contract will specifically help BT
to build up its infrastructure to continue to play a leading role in
strengthening the UK's leadership in communications by increasing
performance, capacity and bandwidth to a broader customer base.

"21CN is a huge transformational programme. It's about
providing a network for the future which requires a game-changing approach,"
said George Nazi, managing director, BT 21CN Core Convergence.
"Alcatel-Lucent came up with an innovative solution that will help us keep
21CN at the forefront of innovation and radical change."

With video-rich content consumption booming, it has become
critical to accelerate the transition to a unified smart IP network and to an
open application environment that enables new business models. With this
network evolution, BT is striving to increase revenues and reduce costs while
migrating to new and more profitable business models.

"BT's 21CN is one of the most complete, exciting and ambitious
business transformation programmes anywhere in the global telecommunications
industry," said Lakh Jemmett, Vice President, Alcatel-Lucent North Europe.
"We are proud that our High Leverage Network architecture is enabling BT to
transform their business, transform their networks, and deliver powerful new
services in a scalable, cost-effective way."

In support of its HLN vision, and in alignment with BT's
business drivers, Alcatel-Lucent will provide an innovative end-to-end
transport solution which tightly integrates IP and optical transport
resources along with professional services such as project management,
design, installation and commissioning, repair and return and software
updates which will help BT manage the rapid growth in network traffic, while
substantially cutting operational and maintenance costs.

As BT's residential subscriber base and associated bandwidth
demands continue to grow, and in preparation for new rich-media services, BT
is also evolving its residential IP service delivery architecture. Broadband
Network Gateways (BNGs), previously centralized and becoming an increasing
bottleneck in the network, will be distributed closer to subscribers using
next generation service routers. This will result in an increase in capacity
and performance creating a better end-user experience. Additionally, as the
BNG function runs on the same routing platform as BT's business services,
operations are streamlined and simplified for the operator.

About Alcatel-Lucent's solution

As part of the contract, Alcatel-Lucent will enhance its
existing 7750 Service Router (!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3dnTRL8h2VAQADYR9IA!!?LMSG_CABINET=Solution_Product_Catalog&LMSG_CONTENT_FILE=Products/Product_Detail_000426.xml),
which has been previously supplied to BT for its award-winning BT Etherflow
service, to provide Broadband Subscriber Management in a distributed
architecture. The contract also covers the deployment of the 1830 Photonic
Service Switch (!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3dnTRL8h2VAQADYR9IA!!?LMSG_CABINET=Solution_Product_Catalog&LMSG_CONTENT_FILE=Products/Product_Detail_000486.xml),
which, with its unique Zero Touch Photonics approach, combines
flexibility, automation, fast time-to-service and bandwidth efficiency needed
to address new IP-based applications. Additionally, the Alcatel-Lucent 1850
Transport Service Switch (!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3dnTRL8h2VAQADYR9IA!!?LMSG_CABINET=Solution_Product_Catalog&LMSG_CONTENT_FILE=Products/Product_Detail_000491.xml)
will be implemented for multiple traffic aggregation. The contract also
leverages Alcatel-Lucent's professional services including performance
management, design, network integration, installation and commissioning,
repair and return and software updates.

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About Alcatel-Lucent's High Leverage Network(TM)

The Alcatel-Lucent High Leverage Network(TM) (HLN)
architecture addresses the dual challenges of simultaneously scaling and
managing network capacity to meet increasing bandwidth demand while
delivering differentiated, revenue generating services. It achieves this by
delivering scalable bandwidth at the lowest cost per bit and by embedding
intelligence in the network to enable dynamic service creation and delivery.
The foundation for the Alcatel-Lucent Application Enablement ( vision, the HLN
architecture collapses multiple complex costly overlay networks into a
simpler, fully optimized network that leverages technical innovations and
embraces existing environments.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted
transformation partner of service providers, enterprises, strategic
industries such as defense, energy, healthcare, transportation, and
governments worldwide, providing solutions 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 15.2
in 2009 and is incorporated in France, with executive offices located
in Paris. For more information, visit Alcatel-Lucent on the Internet:, read the latest posts on the Alcatel-Lucent's
blog and follow us on Twitter:

Alcatel-Lucent Press Contacts: Peter Benedict, Tel: +33(0)1-40-76-50-84, peter.benedict at; Valérie La Gamba, Tel: +33(0)1-30-77-35-91, valerie.la_gamba at; Alcatel-Lucent Investor Relations: Frank Maccary, Tel: +33(0)1-40-76-12-11, frank.maccary at; Don Sweeney, Tel: +1-908-582-6153, dsweeney at; Tom Bevilacqua, Tel: +1-908-582-7998, bevilacqua at; Tony Lucido, Tel: +1-908-582-5722, alucido at

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