BlueCom Picks Alcatel for DSL

PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced a frame agreement with BlueCom for their planned national DSL network to deliver enhanced broadband services to the Norwegian service provider's approximate 20,000 DSL customers. The agreement solidifies Alcatel's DSL leadership in Norway, and provides BlueCom with a future-proof network to keep up with the region's growing demand for broadband services.

BlueCom, the number three ADSL service provider in Norway, will benefit from a facilities-based business model that enables a larger variety of services to be offered to their customer base. BlueCom will deploy the Alcatel Advanced Services Access Manager (ASAM), and is expected to be an early adopter of new DSL line technologies, including ADSL2plus*. Over a two-year period, BlueCom will install approximately 200 Alcatel ASAMs throughout its network with a strategy to upgrade them in the near future to deliver video services over DSL.

BlueCom has historically been a wholesaler of broadband services, however this agreement with Alcatel allows BlueCom to better serve the growing demand for broadband services in the region. With a global leadership of 37.6% of the DSL market, Alcatel will work with BlueCom to achieve their objective of growing its user base to 40,000 DSL customers by the end of 2004 and 80,000 by the end of 2005.

"Alcatel's expertise in building future-proof networks will enable BlueCom to keep up with our growing customer demand for more bandwidth and enhanced broadband services," said Eirik Lunde, CEO of BlueCom. "The delivery of broadband services to our customers on our own network signifies a commitment to strengthening the relationship with our customer base, while also giving us the means to enhance our profitability as the DSL market evolves in the region."

"BlueCom is a very future-oriented customer with a unique vision to become a leading supplier of video distribution over DSL," said Michel Rahier, President of Alcatel's fixed networking activities. "This agreement with BlueCom reinforces our DSL position in Norway, and we are looking forward to helping the company achieve its broadband business objectives now and in the future."

Alcatel SA