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Comunitel selects Alcatel for 12 million Euro broadband rollout

Spanish telco counts on DSL to target small, medium businesses in over 100 exchanges

Paris,  June  17,  2002 - Alcatel (Paris: CGEP.PA and NYSE: ALA), the world leader  in  broadband  access, today announced that it has been selected by Comunitel,  the  business  services  operation  of  Spanish carrier ONI, to construct  a  broadband  network  based  on  digital  subscriber line (DSL) technology. The agreement is worth twelve million Euros over two years.

Comunitel will benefit from the powerful combination of Alcatel's broadband leadership and its experience gained through supplying more than 17 million DSL lines worldwide. The carrier will deliver services for small and medium sized  enterprises  (SME)  across  Spain  and  Portugal from a total of 115 exchanges.  35  exchanges are already broadband-enabled, with the remainder to follow over the next two years.

Comunitel's DSL network will be based on the Alcatel 7300 Advanced Services Access  Manager  (ASAM),  the world's most widely deployed broadband access platform.  The Alcatel 7300 ASAM's modular architecture enables carriers to offer  residential  and  business  services,  while  providing  a  seamless migration  path  to  new  broadband-based  entertainment  services  such as streaming video, music download and online gaming as demand evolves.

Comunitel  is  the  first operator in Spain to take advantage of local loop unbundling  to  offer  broadband  services  over  copper  telephone  lines. Comunitel's  portfolio  will  be based on both asymmetric and g.shdsl-based symmetric  DSL, providing a wide choice of cost effective bandwidth options
and   value-added  services  that  will  benefit  SMEs  directly  in  their
day-to-day operations.

"We  have  selected  Alcatel  as market leader to supply the infrastructure that  is  the  key  to  our  successful  entry  into the business broadband market",  said  Antonio  Portela, CEO of Comunitel. "All businesses require competitively  priced,  fast  and  reliable  access  to  services.  Alcatel provides  us  with that capability through a scalable platform that evolves cost-effectively, adapting to technology developments and customer demand."

"Comunitel  is  aggressively entering the broadband space, and its decision to  select  Alcatel  reinforces  our  position  as  the leading supplier of broadband  equipment  and services in Spain," said Michel Rahier, President of Alcatel's broadband networking activities. "Together, we look forward to providing  SMEs  with  affordable  access to compelling, revenue generating services."

About Comunitel
ONI,  Comunitel's  parent company, is Portugal's largest alternate operator and  through its Spanish operations offers businesses a unique portfolio of managed  services  across the Iberian peninsula. With a fiber optic network of  over  135  000  kilometers,  ONI  provides the most reliable and robust network of all alternate operators across the peninsula.

About Alcatel
Alcatel   designs,   develops   and   builds   innovative  and  competitive
communications   networks, enabling carriers, service  providers  and
enterprises  to  deliver  any  type  of  content,  such  as voice, data and multimedia,  to any type of consumer, anywhere in the world. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end  optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimizing their service offerings and  revenue  streams.  With  sales  of  EURO 25 billion in 2001 and 99,000 employees, Alcatel operates in more than 130 countries.

http://www.alcatel.com/vpr/?body=/latestnews/17062002_3uk


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