PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that China Telecom, the leading telecom operator in China, has chosen the Alcatel carrier-class IP service routing and management solution to deliver high value data services over its nation-wide IP/MPLS (Multiprotocol Label Switching) network, ChinaNet2. The contract was won through Alcatel Shanghai Bell, Alcatel's flagship Chinese company.

Alcatel will provide China Telecom with the Alcatel 7750 Service Router (SR) and 5620 Service Aware Manager (SAM) to support the operator in delivering a wider variety of advanced, differentiated IP and Ethernet services that will generate new revenue streams. The 7750 SR will also enable the operator to integrate its voice and service level agreement (SLA)-based data services into one unified IP/MPLS platform.

ChinaNet2 is designed to cope with the imminent network requirements for large-scale deployment of new data services such as Ethernet virtual private network (VPN) services, on top of the existing high-speed Internet access services. Equipped with the Alcatel IP service routing solution, ChinaNet2 has a solid foundation for the anticipated deployment of Next Generation Network and 3G services, which require stringent levels of Quality of Service (QoS).

"The advanced, user-centric features on the Alcatel service routing solution will help China Telecom to meet the explosive demand for high-value added services," Basil Alwan, president of Alcatel's IP activities. "We are committed to helping our customers deliver services that end users will value and we look forward to working closely with China Telecom to achieve further success in the fast-growing Chinese market."

Alcatel SA

China Telecommunications Corp.