TEL AVIV -- Alcatel-Lucent (Euronext Paris and NYSE: ALU) and Bezeq International, Israel's leading Internet and international telecoms provider, have teamed up to roll-out a new high-speed submarine cable system linking Tel Aviv, Israel, to Italy and then to Europe via land route. The system which will span 2,297km, is the first fully-owned by an Israeli operator to land in Israel and will further strengthen the hub role of the area.

The fixed and mobile broadband penetration in Israel is growing at a fast pace with the number of Internet users expected to reach more than 5 million by the end of this year. With over one and a half million high-speed ADSL and cable lines, the Israeli telecom operator is taking a new significant step in the development of its communication infrastructure. The new system will enable Bezeq International to better serve its customers, while reducing the capital expenditures deriving from leasing capacity.

“The Israeli telecom market is highly dynamic with one the highest household broadband and mobile penetration rates that are leading to network convergence as more technologically diverse services are becoming available,” Isaac Benbenisti, Chief Executive Officer of Bezeq International. “Alcatel-Lucent’s advanced technology will enable us to offer access to huge bandwidth at more affordable rates, while empowering our ability to deliver new applications for our customer and benefit from growth in wholesale market.”

Bezeq, The Israel Telecommunications Corp. Ltd. (OTC: BZQIF)