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Alcatel Expands

PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been awarded a contract by Sun Cellular, the mobile brand of Digital Mobile Philippines Inc. (DMPI) in the Philippines, to expand the operator's GSM/GPRS mobile network capacity and strengthen its position as a national telecommunications service provider in the Philippines. This contract, valued at approximately 18 million Euros, will cover the expansion of Sun Cellular's network in the metro Manila area and the islands of Luzon and Cebu.

Upon completion of the project in October 2005, Sun Cellular will be able to accommodate as many as 3 million subscribers, a substantial increase over the number of customers it supports today. Sun Cellular will also be in a position to implement solutions that can satisfy the full range of its subscribers' requirements for innovative mobile data services.

Alcatel will supply, install and commission its Evolium? GSM/GPRS and EDGE-ready solution, which includes mobile switching and IN solutions. As the Evolium? solution is based upon open standards and the software is able to be upgraded, network capacity can be increased both rapidly and cost efficiently to meet Sun Cellular's future growth requirements. In the future, Sun Cellular will have the potential to migrate to a mobile Next Generation Network (mobile NGN) that can support advanced mobile services whilst reducing operation expenses.

"We have decided to entrust the support of our network and service expansion to Alcatel because we recognize Alcatel as the leader in cost effective and evolutionary core networks," explained Charles Lim, Chief Executive Officer of Digitel Mobile Philippines Inc. (DMPI). "The performance and QoS of the Alcatel packet core network solution is acknowledged by the market and thanks to their innovative solutions, Alcatel can meet our business and technical requirements perfectly," he added.

Marc Rouanne, Chief Operating Officer of Alcatel's mobile communications activities, stated, "GSM/GPRS expansion is one of the key drivers for the mobile core market evolving towards NGN. The Alcatel solution is successfully serving extremely demanding operators and we are once again proud to be trusted by Sun Cellular to support them in their business growth. With Alcatel's leading-edge mobile infrastructure and service solution, we are confident that we can complete the project in the most cost- and time-efficient manner, whilst ensuring service quality."

Alcatel

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