BASE Outsources to Alcatel

Belgian mobile operator BASE, a subsidiary of KPN Mobile, outsources operation and maintenance of its network to Alcatel

August 26, 2004

2 Min Read

PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been awarded an outsourcing contract of several years by the Belgian mobile operator BASE, a 100% subsidiary of KPN Mobile, for the operation and maintenance of its network. This contract is worth several tens of million euros and will take effect as of October 1, 2004. By outsourcing its network operation and maintenance, BASE shifts away from being a network operator and becomes a flexible and swift player on the Belgium market concentrating on customers while enhancing its profitability.

As part of this contract Alcatel will operate and maintain BASE's multivendor and multitechnology mobile network of 1,437,000 subscribers. This involves the transfer of BASE's Network Operations Centre and Field Operations departments, in total approximately 50 people. Alcatel will support future developments of the network enabling BASE to offer advanced customer services, supporting its growth in the coming years.

This contract fits well with BASE's announcement to further implement its strategy of reducing costs and increasing flexibility on 15 March, 2004. This is the first large network outsourcing contract for BASE with an external party. To become a successful and profitable third entrant on the Belgian market, BASE has decided to reduce its fixed costs, focusing on delivering services to its customer while building a flexible organization based on a lean and strong business model. With Alcatel, BASE found an experienced service player to enter into a partnership with, and who was prepared to take over part of the staff.

"By taking on BASE's network operation and maintenance services, Alcatel demonstrates once again its capability and its commitment with BASE's operations and maintenance staff to deliver high level quality of service to BASE's customers. Alcatel's role goes beyond the traditional equipment supplier. As a strategic partner, Alcatel should have a good understanding of the operator's objectives and desirable outcomes and is responsible for helping the operator to meet its business challenges," said Frederic Rose, President of Alcatel's integration and services activities.

Alcatel will use the synergies it creates with other similar contracts at both the network maintenance level as well as at the operational level given the skills and experience gained with these other contracts.

The contract confirms Alcatel's position as the worldwide leader for outsourced operations and maintenance of multi-vendor networks.

Alcatel SA

BASE

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