Alcatel Doubles Up in Russia

Alcatel selected by North-West Telecom to deploy broadband access network in Russia; signs Protocol of Cooperation with Comstar

May 19, 2004

3 Min Read

PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) announced today that it has beenawarded a contract by JSC North-West Telecom, one of the leading telecom companies in Russia, tobuild a multiservice access network in the North-West region of the Russian Federation for thedelivery of integrated voice and data services.

North-West Telecom provides a wide range of telecommunication services in the North-Westernfederal region, one of seven federal regions in the Russian Federation. The region’stelecommunication market is Russia’s second in terms of service volume. Alcatel’s contract withNorth-West Telecom will cover 8 out of the 9 largest cities in the region: St.Petersburg, Petrozavodsk,Pskov, Veliky Novgorod, Cherepovets, Murmansk, Arkhangelsk, Kalinigrad.

“The telecommunications market in the North-West Region is aggressively advancing”, stated OlegSemanov, Director for Strategic Development and Technical policy of North-West Telecom JSC.“Our residents currently have access to many telecom services, such as local communicationservices, cellular and paging services, data transmission services, IP telephony and access to theInternet. Our cooperation with Alcatel will open up numerous opportunities for enterprises andindividuals to access new broadband services.”

”Our solution enables North-West Telecom to expand their services portfolio by offering more andinnovative services on their broadband infrastructure and converging their voice and data platformsto achieve an integrated service offering”, said Michel Rahier, Chief Operating Officer of Alcatel’sfixed communications activities.” With the integration of data and voice and the expansion ofbroadband, a new age will emerge in the Russian Federation. “

Alcatel’s integrated solution comprises broadband access, a multiservice core and a completemanagement system. Under the terms of the contract Alcatel will supply its industry leading Alcatel7300 ASAM platform, the Alcatel 7470 and Alcatel 7670 Multiservice Platforms, and the Alcatel5620 Network Manager.

This contract further reinforces Alcatel’s DSL leadership world-wide and in Russia in particular.Today Alcatel holds a leading position in broadband access with a cumulated market share of 37%and a total of 45 million DSL lines shipped.

In a separate release:

Alcatel (Paris: CGEP.PA and NYSE: ALA) and COMSTAR UnitedTelesystems, one of Russia’s largest alternative operators, today announced the signature of aProtocol of Cooperation. The Protocol envisages cooperation between the two companies for theintegration and further development of existing telecommunication networks owned by operatorsnow part of the COMSTAR United Telesystems Group. The Protocol also covers the introduction ofnew broadband services and technologies.

Alcatel and COMSTAR United Telesystems plan to develop principles for end-to-end interaction ofnetworks owned by COMSTAR United Telesystems operators, to introduce a common set of servicesfor their unified network, to optimize utilization of existing infrastructure, and to develop a singlemanagement system and maintenance for the integrated network and services .

“The current objective of the new operator is to optimize usage of companies’ resources and ensuretransfer to the unified technology of services’ provision, says Semen Rabovsky, general directorCOMSTAR United Telesystems. “Relying on Alcatel’s world-wide experience in broadbandtechnologies, we hope to create in the future the most favorable environment for the introduction ofany telecommunication services.”

Johan Vanderplaetse, President of Alcatel in Russia, added: “In today’s highly competitive market,delivery of new differentiated services is one of the key factors of an operator’s success. COMSTARUnited Telesystems is becoming one of the largest alternative operators in Russia, and we are readyto jointly implement the most ambitious broadband projects.”

Alcatel SAJSC North-West TelecomComstar Telecommunications Ltd.

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