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  • 18 March 2005 15:14

Alcatel reports bode well for Alcatel

Analyst reports out today show strong results for Alcatel in the carrier data and voice enterprise telephony segments:

- A new market entrant in the IP Edge Aggregation router segment, Alcatel debuted in third place in the category capturing 5.6 percent market share, according to research firm Synergy;

- Dell’Oro found Alcatel has solidified its number two position in the Multiservice Wide Area Network (MSWAS) segment, delivering a 75 percent increase in year-over-year revenue according to; and

- Gartner found that Alcatel is the leading vendor overall in the voice enterprise telephony market in Western Europe.

Please see the full press releases below. For more information, please contact Caroline Hendra at or (02) 8281 3810.

Alcatel posts strong IP and MSWAN market share growth in Q4 2004

Research firms Synergy and Dell’Oro rank Alcatel in Top 3 for both segments

March 18, 2005 – Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that, based on very healthy market demand for its portfolio of next-generation solutions, it secured leading positions in two of the most significant carrier data segments tracked by analysts. For the first time, Alcatel was tracked in the IP Edge Aggregation router segment and debuted in the #3 position based on the strength of customer acceptance for the Alcatel 7750 Service Router. In addition, Alcatel solidified the #2 position in the Multiservice Wide Area Network (MSWAN) segment, delivering a 75 percent increase in year-over-year revenue.

A new entrant to the IP Edge Aggregation router segment, Alcatel captured 5.6 percent market share in the fourth quarter of 2004. Alcatel’s success is directly related to service provider acceptance and deployment of its Multiservice Edge Routing (MSER) solution based on the Alcatel 7750 Service Router. The Alcatel 7750 SR already has more than 50 customers, including SBC, Allstream, and MASERGY in North America; China Telecom, China Netcom, and Hutchison Global Communications in the Asia Pacific region; and TeliaSonera and Telenet in Europe.

“Alcatel demonstrated real momentum for its IP portfolio in 2004 with some important wins with incumbent service providers. This netted Alcatel a clear top three position in IP,” said Ray Mota of Synergy. “Within IP Edge Aggregation, the multiservice edge routing segment should begin to take off during 2005 and it promises to be a highly competitive space. We believe service providers are looking for MSER platforms that deliver high availability, concurrent scaling of multiple services and service-aware operational tools, and vendors who meet those demands will grab market share.”

“We are very pleased with our strong position in IP,” said Basil Alwan, president of Alcatel’s IP activities. “We believe that the Alcatel 7750 SR is a breakthrough platform. Its selection by leading service providers such as SBC for its project Lightspeed, which will deliver triple play services for up to18 million homes, proves that the platform can deliver the service quality required to assure high customer satisfaction for new IPTV, voice and data services. These new services are what will define the next generation of IP platforms and determine the next generation of IP leaders.”

Alcatel captured a leading position in the MSWAN market as well. According to Dell’Oro Group, Alcatel earned 27.4 percent of the MSWAN market in the fourth quarter. Alcatel has posted seven straight quarters of market share gains in MSWAN, driven by rapid growth in DSL aggregation and service providers adding new IP and Ethernet VPN services to their existing ATM/Frame Relay networks. The Alcatel 7670 RSP now has more than 100 customers around the world including SBC, BT, France Telecom, Slovak Telecom and Korea Telecom.

“Alcatel’s MSWAN results demonstrate that service providers are investing in platforms that allow them to expand their IP business while protecting existing layer two services – which remain a profit engine,” added Mr. Alwan. “Recognizing this market opportunity, Alcatel continues to deliver new features and capabilities on our multiservice IP platform. Our market share gains over the last two years reinforce Alcatel’s strategy as being the right one.”

Alcatel keeps overall lead in Western Europe

voice enterprise telephony market

March 18, 2005 – Alcatel (Paris: CGEP.PA AND NYSE: ALA) today announced that preliminary market research from Gartner, Inc. has found that Alcatel is the leading vendor overall in voice enterprise telephony for Western Europe, 2004. According to the research firm’s recently published “Market Statistics: Enterprise Telephony, Western Europe, 20041,” Alcatel led the region in 2004 with the largest total market share for overall voice telephony line shipments, as well as the largest number of IP lines supporting a phone shipped.

The Gartner report found that Alcatel’s overall market share in 2004 stands at 16.5 percent for voice telephony lines shipped, in expansion vs. 2003 thanks to a 4.9 percent growth in shipments, outperforming the average market growth of 3.4 percent. The Gartner report also confirmed Alcatel’s market position in all IP telephony line shipments with a 2004 market share of 22.6 percent.

“We are extraordinarily pleased to have our efforts in enterprise telephony confirmed by Gartner’s research,” said Jean Luc Fourniou, Senior Vice President, Alcatel Enterprise Solutions activities. “Our broad range of enterprise telephony offerings enables a ‘dual’ IP/TDM approach for enterprises, protecting previous investments, while allowing for a migration to full IP environments.”

This announcement follows Alcatel being listed in the leaders quadrant for the Gartner Magic Quadrant for corporate telephony for the European, Middle East and African region (EMEA)2. Alcatel has implemented some of the largest IP Telephony installations in the world. Current Alcatel enterprise telephony customers include Ernst & Young, Fujicolor, Nestle, and many more.

1See Gartner Report: “Market Statistics: Enterprise Telephony, Western Europe, 2004 (Preliminary)” by Chris Lock, February 23, 2005.

2See Gartner Report: “Corporate Telephony Magic Quadrant for EMEA, 2004” by Steve Blood and Christopher Lock, September 20, 2004. The Magic Quadrant is copyrighted by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Alcatel

Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks; applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 12.3 billion in 2004, Alcatel operates in more than 130 countries.

For more information, visit Alcatel on the Internet:

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