Alcatel Launches Global "Unlimited Mobile TV for Mass Market" Project

Alcatel Launches Global "Unlimited Mobile TV for Mass Market" Project

3GSM World Congress, Barcelona - 13 - 16 February 2006

BARCELONA, Spain, February 14/PRNewswire-FirstCall/ -- On the occasion of the 3GSM World Congress in Barcelona, Alcatel
(Paris: CGEP.PA and NYSE: ALA) today announced the launch of its "Unlimited
Mobile TV for Mass Market" project, a unique combination of DVB-H-based
terrestrial and satellite broadcast delivery in the S-Band, complementing
existing 3G/UMTS networks. Alcatel's approach allows operators to protect and
leverage their 3G investments while offering unlimited coverage, unlimited
audience, unlimited number of TV channels and maximum interactivity.

This innovative solution offers major advantages such as cost savings and
limited environmental issues, broadcast with optimized quality coverage in
urban indoor environments, access to an available telecommunications
frequency band (S-Band(1)) homogenized at the European level, and instant
multi-country nationwide geographical coverage.

- For the broadcast of a significant number of mainstream TV
channels, Alcatel offers to reuse 3G radio sites and antennas and to
extend them with S-Band repeater capability, providing optimized quality
as well as indoor and urban coverage. This solution offers an easy
integration with existing mobile sites and antennas, whether based on
Alcatel's infrastructure or not. Furthermore, in the case of sites using
an Alcatel infrastructure, operators will be able to reuse the Alcatel
Node Bs themselves thanks to Alcatel's Software Defined Radio (SDR)
approach.

- In addition, Alcatel's Content Management & Service platform
provides interactivity and personalization (e.g. community services,
chat, voting, click-to-buy, etc...) allowing seamless access to related
services as well as cross-advertising opportunities on any combined
unicast and broadcast network.

- A case in point, the dynamic allocation feature allows the
network operator to select the channels to be broadcast dynamically, i.e.
changing over the time. This feature is of high interest to improve
overall bandwidth management (e.g. when a specialty channel becomes a
mainstream channel on a special occasion, or when the audience of a
channels evolves over time).

Phil Taylor, Director, Strategy Analytics Global Wireless Practice,
declared: "The hybrid architecture for unlimited mobile TV proposed by
Alcatel, that combines satellite coverage with a terrestrial coverage reusing
existing mobile sites with S-Band capability, deserves industry's support. I
reckon it will allow operators to leverage their 3G assets while providing
end-users with a full geographic coverage for mobile TV with a good reception
quality indoor and outdoor. I think the fundamentals of this proposition are
good, in particular with DVB-H mobile phones in the S-Band already on track."

Olivier Coste, President, Alcatel Mobile Broadcast added: "After taking
the lead to make IP-TV a major success on fixed networks, Alcatel is
dedicated to the advent of Mobile TV for the mass market. The hybrid
terrestrial and satellite architecture proposed by Alcatel has a great
potential to deliver upon its promises, to allow operators leverage both
their existing assets and the availability of the S-Band frequency range
across continents. Thanks to this solution, Mobile TV is bound to become
easily accessible and affordable to a very large number of people in Europe
and in the rest of the world."

Alcatel's mobile interactive TV applications allow further
interactivity and personalization, allowing to complement traditional live TV
with new mobile interactive TV contents. As a result, Alcatel today enables
more than 20% of all mobile TV users in the world.

(1)The S-Band is a telecom frequency band reserved for satellite
usage, which is immediately adjacent to the 3G/UMTS spectrum and is available
across continents

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 13.1 billion and 58,000 employees in 2005, Alcatel
operates in more than 130 countries. For more information, visit Alcatel on
the Internet: http://www.alcatel.com

Alcatel Press Contacts
Regine Coqueran, Tel: +33-(0)1-40-76-49-24, regine.coqueran@alcatel.com
Eric Giaretto / Tel: +33-(0)1-30-77-88-47, eric.giaretto@alcatel.com
Alcatel Mobile Broadcast

Alcatel Investor Relations

Pascal Bantegnie, Tel: +33-(0)1-40-76-52-20, pascal.bantegnie@alcatel.com
Nicolas Leyssieux, Tel: +33-(0)1-40-76-37-32,
nicolas.leyssieux@alcatel.com
Maria Alcon, Tel: +33-(0)1-40-76-15-17, maria.alcon@alcatel.com
Charlotte Laurent-Ottomane, Tel: +1-703-668-7016,
charlotte.laurent-ottomane@alcatel.com

A global ecosystem of industrial and scientific partners
supporting Alcatel's "Unlimited Mobile TV for Mass Market" initiative

Alongside Alcatel, an ecosystem of industrial, research and scientific
partners is already supporting the "Unlimited Mobile TV for Mass Market"
initiative.

a) Industrial partners

- Alcatel Alenia Space will bring its experience in deploying satellite
payloads and systems for the hybrid architectures of the digital radio offers
from World Space, XM Radio and Sirius in the USA.

- DiBcom will bring its expertise in chipsets allowing the
reception of Mobile TV. Leveraging the market leadership of its DIB7000-H
chipset, the first introduced and best available IC for DVB-H in the market,
DiBcom is engaged in the development of a new chipset compatible with the
evolution of the DVB-H broadcast mobile TV standard in the S-Band frequency
band.

- Radio Frequency Systems (RFS) will bring its experience in the design
of innovative antenna solutions, in particular in low visual impact co-linear
antennas, broadband panel arrays and advanced RF combining and conditioning
technology for DVB-H, as well as for UMTS.

- Sagem Communication will bring its expertise in multimedia
handsets, in particular in DVB-H handsets currently being used for DVB-H
experimentations in Europe. Sagem Communication will develop mobile phones
supporting 3G/UMTS and/or EDGE and DVB-H in both the UHF band and in the
S-Band.

- TeamCast brings its expertise in DVB-T and DVB-H modulators currently
being used by European transmitters vendors.

- UDcast brings its expertise in DVB-H IP encapsulators, DVB-H network
management and management of the network radio resources. Leveraging its
experience in routing and transport for mixed satellite and terrestrial
connections architectures, UDcast will also play a leading role on the
overall network architecture.

b) Research & scientific partners:

- Fraunhofer Institute for Integrated Circuits IIS in Erlangen, Germany
brings in its expertise in the field of hybrid satellite and terrestrial
reception. The Institute is renowned for the invention of the MP3 compression
standard (together with Thomson) and its contribution to the XM Radio system.

- CEA-Leti laboratory brings its expertise in optimised wave forms for
the most advanced radio communication systems and in multi-standard
terminals."

- The INRIA brings its deep knowledge of mechanisms allowing the optimal
delivery of video and audio services in cellular networks.

- The LSS laboratory of the CNRS will bring its knowledge of multi-layer
optimization for video delivery, allowing significant improvement in the
quality of signal reception.

About Alcatel Alenia Space

Alcatel Alenia Space is the European leader in satellite systems, at the
forefront of orbit infrastructures. Created in July 2005, the company brings
together the vast experience and know-how of Alcatel Space and Alenia Spazio
to form a new leading force in European space technology. Alcatel Alenia
Space represents a worldwide standard for space development that impacts
everybody's future: from navigation to telecommunications, from meteorology
to environmental monitoring, from defence to science and observation. Alcatel
Alenia Space is an affiliate of Alcatel (Paris: CGEP.PA and NYSE: ALA) (67%)
and Finmeccanica (Milan:SIFI.MI, FNC.IM) (33%).

About DiBcom

DiBcom is at the heart of Mobile TV. As a fabless
semiconductor company that designs high-performance chipsets, DiBcom enables
low-power mobile and portable TV reception everywhere and at speeds exceeding
150 mph. The company's solutions are used in automotive, PC/peripheral and
handheld device applications. DiBcom has extensive experience solving
real-world mobile digital terrestrial television (DTT) reception problems and
has overcome the main technological barriers to high-quality service. The
company has developed patented algorithms and architecture for fast and
accurate channel estimation and high Doppler compensation. Its chipsets are
compliant with the current worldwide Digital Video Broadcast standards DVB-T
and DVB-H.

For more information, visit www.dibcom.com

About RFS

Radio Frequency Systems is a global designer and manufacturer
of cable and antenna systems plus active and passive RF conditioning modules,
providing total-package solutions for wireless infrastructure. RFS serves
OEMs, distributors, system integrators, operators and installers in the
broadcast, wireless communications, land-mobile and microwave market sectors.
As an ISO compliant organization with manufacturing and customer service
facilities that span the globe, RFS offers cutting-edge engineering
capabilities, superior field support and innovative product design. RFS is a
leader in wireless infrastructure. For more information, visit
www.rfsworld.com

About Sagem Communication

Sagem Communication (SAFRAN Group) is a major player in the
Mobile and Broadband Communication industries, who has acquired a strong
world-wide position thanks to renewed innovation. SAGEM products stand-out
particularly in the following activities: mobile phones, printing terminals,
residential terminals, digital TV, networks and electronicmetering, etc.. For
more information, please visit our Web sites: www.sagem.com et
www.safran-group.com

About UDcast

UDcast is a leading provider of IP over broadcast media,
focusing on IPTV to the mobile DVB-H solutions as well as satellite-aware
enterprise networking solutions. UDcast provides DVB-H standard compliant
solutions for the delivery of IPTV to mobile devices. In addition, UDcast
provides satellite aware IP appliances that bring terrestrial-like
performances and security to broadband satellite links. UDcast's feature rich
solutions enable satellite service providers to deliver revenue-generating
value added services that meet enterprise needs. Founded in 2000, UDcast
maintains its global headquarters in Sophia Antipolis, France.

For more information visit www.udcast.com

About Teamcast

TeamCast is a young company founded in July 2003 to supply products and
services to the digital broadcasting world. TeamCast is a DVB forum member
and has played a leading role in the definition and the validation of the
DVB-H standard. TeamCast also participates in the EBU Broadcast to Handheld
work group, which is performing a comparative study between the technologies
able to provide rich Multimedia content to mobile handheld terminals. The
company's strategic plan reflects a high growth rate for the next 3 years. A
group of investors led by INNOVACOM, the venture capital subsidiary of the
France Telecom group, has joined the capital of the company in September 2004
to support this growth plan. For more information: www.teamcast.com

About Fraunhofer IIS

Founded in 1985, Fraunhofer Institute for Integrated Circuits IIS in
Erlangen, Germany, ranks first among the Fraunhofer Institutes concerning
headcount and revenues. In close cooperation with our partners and clients we
provide our research and development services in the following areas: Digital
radio broadcasting systems, audio and multimedia technology, digital cinema
systems, design automation and integrated circuits, wired, wireless and
optical networks, localization and navigation, high-speed camera systems,
imaging systems and nanofocus X-ray technology, medical sensor solutions and
communications technology in transport and logistics. For detailed
information on our research and development portfolio, please see
http://www.iis.fraunhofer.de

Source: Alcatel

Alcatel Press Contacts: Regine Coqueran, Tel: +33-(0)1-40-76-49-24, regine.coqueran@alcatel.com. Eric Giaretto / Alcatel Mobile Broadcast, Tel: +33-(0)1-30-77-88-47, eric.giaretto@alcatel.com. Alcatel Investor Relations: Pascal Bantegnie, Tel: +33-(0)1-40-76-52-20, pascal.bantegnie@alcatel.com; Nicolas Leyssieux, Tel: +33-(0)1-40-76-37-32, nicolas.leyssieux@alcatel.com; Maria Alcon, Tel: +33-(0)1-40-76-15-17, maria.alcon@alcatel.com; Charlotte Laurent-Ottomane, Tel: +1-703-668-7016, charlotte.laurent-ottomane@alcatel.com

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