PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) and Iberdrola, a Spanish electric utility, today announced that Iberdrola has selected the Alcatel IP service router to migrate its telecom network to anInternet Protocol (IP) based backbone. By harmonizing new IP andEthernet-based technology and existing services over a unifiedIP/Multi-Protocol Label Switching (IP/MPLS) infrastructure, Iberdrola can continue to deliver existing internal services and rapidly roll out new services - such as virtual private LAN service (VPLS).

Iberdrola will deploy the Alcatel 7750 Service Router (SR) and the Alcatel 5620 network management portfolio to enhance the bandwidth wholesale business through its telecom operator brand Neo-Sky and the recently launched Power Line Communications (PLC) offering, which provides Internet access through the home's electrical wiring. As a result, Iberdrola will maximize operating profits and will improve network efficiency, while its users can select from new and existing services with no impact on performance and quality of service.

"After an extensive selection process our technical department chose the Alcatel solution because of its better service-oriented features, which closely align with our technology requirements," said Miguel Angel Sánchez Fornié, Systems, Control and Telecommunications Director of Iberdrola. "We believe our access network - outfitted with the Alcatel 7750 SR and management - will now deliver the industry's most comprehensive PLC service offering. Our decision to migrate to a single IP/MPLS infrastructure will strengthen our position."

The service capabilities of the Alcatel 7750 Service Router include a wide range of applications such as VPLS, IP-VPNs (Virtual Private Networks), Virtual Leased Lines and enhanced Internet Access. Each is provided with strict IP/MPLS Quality of Service, allowing Iberdrola to meet the Service Level Agreements (SLAs) set with its customers.

"The new IP data network provided by Alcatel will help Iberdrola to better manage its entire telecom business by allowing Iberdrola to smoothly migrate to a full IP/MPLS network," said Basil Alwan, president of Alcatel's IP activities. "Based on the Alcatel solution, Iberdrola is able to increase the backbone network capacity, flexibility and quality of thenew IP-based services provided by its PLC access network, withoutsacrificing the traditional services which are critical to its bottom line."

Alcatel SA