Telefonica Presents With Alcatel-Lucent a Multimedia Mobile Interactive TV, Radio and Music Pilot Project for Mobile Devices

Telefonica Presents With Alcatel-Lucent a Multimedia Mobile Interactive TV, Radio and Music Pilot Project for Mobile Devices

The Project Will be Presented in the 3GSM World Congress in Barcelona

PARIS and MADRID, February 8/PRNewswire-FirstCall/ -- Alcatel-Lucent (Euronext Paris: ALU; NYSE: ALU) and Telefonica
today announced that they are conducting a pilot project for mobile
interactive multimedia services in Spain. The pilot project will encompass a
comprehensive offer of cutting-edge interactive TV, radio and music services
for mobile handsets. The tests started in early October 2006 and are
scheduled to run for 6 months.

Cayetano Lluch, General Director of Technology, Telefonica Moviles Espana
pointed out: "We want to offer our customers the most complete personalized
best-in class multimedia experience, that brings the full benefit of
interactivity and excitement into their everyday lives. In the framework of
this multi-faceted trial, we are eager to cooperate with Alcatel-Lucent and
we will test its end-to-end solutions portfolio covering mobile TV, radio and
music service delivery."

Marc Rouanne, President of Alcatel-Lucent's convergence
activities added: "With more than 80 mobile TV and video services in
operation worldwide, Alcatel-Lucent enjoys a leadership position in the
booming mobile TV and radio market. We are proud to have been chosen by
Telefonica to conduct these comprehensive mobile TV, radio and music trials,
as this will allow us to demonstrate our capability to enable interactivity."

In the framework of this agreement Alcatel-Lucent is providing
Telefonica with a trial platform of Alcatel-Lucent's mobile interactive
services. Additionally, Telefonica will test a set of complementary
Alcatel-Lucent's applications to bring full interactivity and enjoyment to
the subscribers, all of them using the same platform and some elements
already provided.

With Alcatel-Lucent's Mobile Interactive TV solution,
Telefonica will be able to create new, high-quality, interactive television
services, allowing mobile end-users to watch high-quality TV channels,
consult an electronic program guide (EPG) in a preferred format, rapidly
change channels or content, and use contextual interactive services, such as
ordering content associated with a TV program, with one or two key strokes in
their handsets.

Alcatel-Lucent's Mobile Interactive solution will provide
Telefonica's end-users with a new way to hear radio on a mobile phone,
allowing them to select different FM radio channels and to browse the
Electronic Program Guide of these channels. In addition, interactive services
will be linked to the content selected by the operator, that spans voting,
alerts and interactive advertising services.

Alcatel-Lucent's Mobile Interactive Music solution includes
new music discovery services, music and video catalogues, as well as cross
selling of several artist's related content (ring tones, video clips, full
tracks and wallpaper).

Alcatel-Lucent's "Unlimited Mobile TV" solution is an
innovative solution using a 3G-friendly hybrid satellite and terrestrial
infrastructure based on the forthcoming DVB-SH broadcast mobile TV standard
in the S-Band (2.2 GHz). It enables the delivery of an unlimited number of TV
channels to an unlimited mobile audience with unlimited coverage.

In addition, to complement this ongoing technical evaluation,
Telefonica and Alcatel-Lucent will perform market tests. Creating an
ecosystem of key players, Alcatel-Lucent ensures the delivery of the best
mobile interactive services on the right network, suited to the most
appropriate content and advertiser sponsorship to the subscribers.

About Telefonica Moviles Espana

Telefonica Moviles Espana (www.empresa.movistar.com) is the carrier of
Telefonica Group in the Spanish market, and at the closing of the 3rd quarter
2006 counted on more than 21 million customers and an exhaustive portfolio of
services and applications using cutting-edge mobile technology, including
UMTS and HSDPA. Movistar is the brand for Telefonica Group mobile companies
in Spain and Latin America, except for Brazil.

Telefonica Moviles Espana
Communications Direction
Tel: +34-680-01-86-00
e-mail: prensa@tsm.es
Perception & Image
Tel: +34-91-351-39-37 Fax: +34-91-351-40-67

Carmen Olmo: carmen@perception-image.com
Carmen Tapia: ctapia@perception-image.com
Patricia Martin: pmartin@perception-image.com
Ricardo Schell: ricardos@perception-image.com

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides
solutions that enable service providers, enterprises and governments
worldwide, to deliver voice, data and video communication services to
end-users. As a leader in fixed, mobile and converged broadband networking,
IP technologies, applications, and services, Alcatel-Lucent offers the
end-to-end solutions that enable compelling communications services for
people at home, at work and on the move. With 79,000 employees and operations
in more than 130 countries, Alcatel-Lucent is a local partner with global
reach. The company has the most experienced global services team in the
industry, and one of the largest research, technology and innovation
organizations in the telecommunications industry. Alcatel-Lucent achieved
proforma combined revenues of Euro 18.6 billion in 2005, and is incorporated
in France, with executive offices located in Paris. [All figures exclude
impact of activities to be transferred to Thales]. For more information,
visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com

Alcatel-Lucent Press Contacts

Regine Coqueran
Tel: +33(0)1-40-76-49-24
regine.coqueran@alcatel-lucent.com

Mark Burnworth
Tel.: +33(0)1-40-76-50-84
mark.burnworth@alcatel-lucent.com

Alcatel-Lucent Investor Relations

Pascal Bantegnie
Tel: +33(0)1-40-76-52-20
pascal.bantegnie@alcatel-lucent.com

Maria Alcon
Tel: +33(0)1-40-76-15-17
maria.alcon@alcatel-lucent.com

John DeBono
Tel: +1-908-582-7793
debono@alcatel-lucent.com

Source: Alcatel-Lucent

Regine Coqueran, Tel: +33(0)1-40-76-49-24, regine.coqueran@alcatel-lucent.com, Mark Burnworth, Tel.: +33(0)1-40-76-50-84, mark.burnworth@alcatel-lucent.com; Alcatel-Lucent Investor Relations, Pascal Bantegnie, Tel: +33(0)1-40-76-52-20, pascal.bantegnie@alcatel-lucent.com; Maria Alcon, Tel: +33(0)1-40-76-15-17, maria.alcon@alcatel-lucent.com; John DeBono, Tel: +1-908-582-7793, debono@alcatel-lucent.com

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