Alcatel in Estonian Triple Play Trial

PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) and Elion Enterprises Ltd., the major provider of telecommunication services in Estonia, have signed a deal for a Fiber-to-the-user (FTTU) field trial to deliver a full range of high bandwidth voice and data communications services in Estonia. This is one of the first FTTU pilots in Europe. All equipment is in place for the field trial which has begun.

Founded on January 1st, 1993, Elion has become the largest telecommunications and IT provider in Estonia. Today Elion is the market leader in fixed network calls, in Internet subscriptions and data communication solutions, and it has made a powerful entry into the IT market. Elion will conduct a field trial with dedicated subscribers in Merirahu, a greenfield site near Tallinn, offering a range of services such as TV, Voice and Internet.

According to the contract, Alcatel will supply its standard-based residential passive optical network (PON) equipment, the Alcatel 7340 FTTU, which has proven to offer low-risk implementation, high capacity and superior value versus cable. Capitalizing on Alcatel's wireline broadband access technology leadership, the Alcatel FTTU platform enables established and emerging service providers to cost-effectively deliver high revenue, next generation broadband services today over a single optical fiber.

"When selecting a technology, it was important to us that the technology be capable of supporting the services we intend to offer now and in the future. Not only is bandwidth a key concern, but also continuity, reliability, universal usability and of course, expense," said Toivo Praakel, Network Director of Elion Enterprises. "With Alcatel's FTTU solution, we intend to offer triple play services in 2005 and to extend our customer base even further."

"Elion's choice of Alcatel's FTTU technology makes sense as it concerns a greenfield installation and Alcatel is increasingly making an impact in this domain in the European market, " said Michel Rahier, Chief Operating Officer of Alcatel's fixed communications activities. "With Alcatel's FTTU solution, Elion will have the ability to provide its customers with the most advanced technology in voice, data and video, backed by the support and expertise that they expect and deserve. It will help Elion to retain its leading position in the market by providing the best customer service as well as innovative household and business communication solutions."

Alcatel