Alcatel Tops DLC Ranking

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Light Reading
4/13/2004



DALLAS -- Alcatel (NYSE:ALA) captured 34 percent of the 2003 Digital Loop Carrier (DLC) market according to industry analyst firm RHK in its recent annual market share report. RHK also confirms that the global DLC market grew by nearly 32 percent in the same period. Alcatel increased its leading position as a result of strong demand for DSL (Digital Subscriber Line) line cards that are used in its DLCs, and demand for new systems in emerging markets.

A DLC system is a part of the copper-wire, local-loop telephone system. It aggregates subscriber calls within a neighborhood, office building, or industrial park and multiplexes the calls over a single line (T1/E1 or fiber optics), back to the telephone company central office where all the switching equipment is located.

While many vendors offer solutions addressing either ANSI (American National Standards Institute) or ETSI (European Telecommunications Standards Institute) markets, Alcatel is the only vendor to experience success in both markets.

North America is the center of Litespan's DSL success, with more than 2.6 million combination asymmetrical digital subscriber line (ADSL) plus plain old telephone service (POTS) ports deployed. In the ETSI market, Alcatel is benefiting from strong growth driven by the expansion of new telephone lines in emerging markets that can be delivered from systems that also provide broadband services.

"The Alcatel Litespan products provide just the right synthesis of technologies to allow customers to respond rapidly to a changing market and to deliver the emerging services that will generate sustaining revenues for decades to come. With the versatility and strength of the Alcatel Litespan in their network, companies can get ahead of the curve and drive demand for profitable advanced services," said Michel Rahier, chief operating officer of Alcatel's fixed communications activities.

Alcatel SA

RHK Inc.

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