Alcatel Signs €42M Subsea Deal

PARIS -- Alcatel (Paris: CGEP.PA et NYSE: ALA) announced today that it has signed a turnkey contract valued at EUR 42 millions with the Post & Telecommunications Office (OPT) of New Caledonia to rollout Gondwana-1, a submarine cable network connecting New Caledonia and Australia. Based on Alcatel's optical networking solutions, the new deployment will significantly increase the capacity of OPT's network.

With completion scheduled in the first quarter of 2008, the project will be beneficial to the region's economic development by offering high-speed connectivity to the Territory. This new submarine network will link Nouméa, in New Caledonia, to Sydney, in Australia where it will interconnect with the international routes towards Europe and the U.S. An unrepeatered link will also connect Poindimié, on the New Caledonian East coast, to the Loyalty Islands.

"With the deployment a new submarine cable network, OPT will be able to offer international connectivity and to develop new, high-speed services such as Triple Play and third-generation UMTS HSDPA mobile services," stated Jean-Yves Ollivaud, President of OPT NC. "Alcatel's solution will allow us to provide a wide range of diversified services, while guaranteeing continuity in their delivery."

"The international connectivity and significant increase in network capacity ensured by this submarine cable network will help OPT rollout new services for its end-users faster and more cost-effectively," said Jean Godeluck, President of Alcatel's submarine network activity "This award further confirms Alcatel's ability to deliver tailored solutions and services that are designed to meet specific customer's requirements."

Alcatel (NYSE: ALA; Paris: CGEP:PA)

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