Alcatel and Microsoft Create an Industry-Leading Solution for IP Television

Alcatel and Microsoft Create an Industry-Leading Solution for IP Television

PARIS and REDMOND, Washington, February 22/PRNewswire-FirstCall/ --

- Collaboration Agreement to Accelerate Innovation and Adoption of
Next-Generation Television Services by Broadband Service Providers World-Wide



Alcatel (Paris: CGEP.PA and NYSE: ALA) and Microsoft Corp. (Nasdaq: MSFT)
today announced a global collaboration agreement designed to rapidly
accelerate the availability of Internet Protocol Television (IPTV) services
for broadband operators world-wide. Alcatel and Microsoft expect that this
precedent-setting agreement between a leading provider of Triple Play (voice,
data, video) solutions and a leading provider of software solutions will help
expand the quickly-growing ecosystem of IPTV industry partners and enable
telecommunication providers to take advantage of global economies of scale
fuelled by large-scale IPTV deployments planned across the globe.



As a result of this agreement, Alcatel and Microsoft will develop an
integrated IPTV delivery solution. The integrated solution builds upon
Alcatel's leadership in broadband, IP networking, development, and
integration of end-to-end multimedia and video solutions, and Microsoft's
leadership in TV software solutions and connected-entertainment experiences
across consumer devices. The Alcatel/Microsoft(R) integrated solution can
help IPTV service providers reduce deployment costs and shorten
time-to-market for IPTV services as they transition to mass-market
deployments of IPTV.



Alcatel and Microsoft believe that consumers around the world can benefit
from receiving unique, personalised services through multiple devices,
including the television. On-demand video streaming applications, interactive
TV, video and voice communications, photo, music and home video sharing, and
online gaming, all delivered seamlessly, are just a few examples of the
services that consumers could receive through their multimedia-connected home
networks.



As part of the agreement, the two companies plan to pursue a series of
joint initiatives, including:



- Developing and customising new applications to meet the unique needs of
different cultures and markets around the world,



- Enhancing application and network resilience for better reliability in
large-scale deployments,



- Integration of content, security and digital rights management to
ensure secure delivery of high-quality content, to and throughout the home,



- Managing quality of service through intelligent video packet handling,
and



- End-to-end integration of management systems for the application
platforms and all components of the network including the home network.



"We are excited to cooperate with Microsoft and benefit from its
leadership in TV software delivery platforms and innovative consumer
experiences delivered across devices in the multimedia-connected home," said
Serge Tchuruk, Chairman and Chief Executive Officer of Alcatel. "We are
committed to integrate the current Alcatel video solutions with Microsoft TV
IPTV Edition, resulting in a market-leading integrated offering."



"Alcatel's deep understanding of broadband service providers and
leadership in broadband solutions and integration make it a natural partner
for us. Aligning our efforts will give customers an unmatched network-access,
software-delivery and systems-integration solution," said Steve Ballmer,
Microsoft's chief executive officer. "Together, Alcatel and Microsoft will
usher in a new generation of exciting entertainment, information and
communication services, enabled by the marriage of powerful broadband
networks and advanced software."

Please use the phone numbers below to join a teleconference about the
announcement today at 3:30 PM Paris time:



To call from the US 888-428-4472



International dial in ................+1-612-288-0340



Assistance is available throughout the teleconference meeting. To request
a specialist, press star, then zero.



Digitised replay:



Scheduled to begin on the 22nd of February 2005 at 7:00 pm Paris time
until the 3rd of August 2005 at 11:59 pm Paris time.



To access the replay



From the US 800-475-6701



International +1-320-365-3844



Access code 771612



About the Microsoft TV Platform



The Microsoft TV platform is a family of software solutions that help
network operators create and deliver new digital TV services that delight
consumers. Designed to help cable providers and telecommunications companies
derive more value from their digital video and network infrastructure
investments, the Microsoft TV family supports a full range of services
including interactive program guides, digital video recording,
high-definition TV, on-demand programming and Internet Protocol TV (IPTV)
services. The Microsoft TV platform works across a full range of set-top
boxes and TV devices. More information about Microsoft TV can be found at
http://www.microsoft.com/tv.



About Alcatel's Triple Play Solutions



Alcatel's User Centric Broadband Solutions deliver both Triple Play
applications for the consumer market and managed communications applications
for the business market. The Triple Play solution leverages the universal
broadband access, specifically designed to support wire-speed triple play,
the service aware edge and the service delivery platform, based on the Open
Media Suite. In addition, Alcatel assists service providers with professional
services such as service package design, application customisation to the
local needs and integrating components from the world's most extensive
ecosystem of industrial partners covering all aspects of a service delivery
chain from content supplier to consumers.



About Microsoft



Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in
software, services and solutions that help people and businesses realise
their full potential. Microsoft is a registered trademark of Microsoft Corp.
in the United States and/or other countries. The names of actual companies and
products mentioned herein may be the trademarks of their respective owners.



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:
http://www.alcatel.com





Source: Alcatel

Microsoft Press Contacts: US: Microsoft TV Team, Weber Shandwick Worldwide, Tel: +1-425-452-5400, mstv@webershandwick.com; Europe: Microsoft TV Team, RED Consultancy, Tel: +44-207-025-6500, microsoftemeatvteam@redconsultancy.com. Alcatel Press Contacts: Aurelie Boutin/HQ, Tel: +33-1-40-76-11-79, aurelie.boutin@alcatel.com. Mark Burnworth/HQ, Tel: +33-1-40-76-50-84, mark.burnworth@alcatel.com. Charlie Guyer / North America, Tel: +1-978-257-3490, charlie.guyer@alcatel.com. Alcatel Investor Relations: Pascal Bantegnie, Tel: +33-1-40-76-52-20, pascal.bantegnie@alcatel.com, Nicolas Leyssieux, Tel: +33-1-40-76-37-32, nicolas.leyssieux@alcatel.com. Maria Alcon, Tel: +33-1-40-76-15-17, maria.alcon@alcatel.com. Charlotte Laurent-Ottomane, Tel: +1-703-668-3571, charlotte.laurent-ottomane@alcatel.com



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