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Brasil Telecom Chooses Alcatel to Supply Next Generation Intelligent Network Services

The contract will allow the operator to increase revenue thanks to value-added services

Paris, July 2, 2002 – Alcatel (Paris: CGEP.PA and NYSE: ALA) announces that it  has  been chosen by Brasil Telecom S.A. (BOV: BRTO3 / BRTO4; NYSE: BTM) for  the enlargement and evolution of its Intelligent Network platform. The frame  agreement,  worth  US$ 65 million, foresees the supply of equipment, software and services  as  well  as  the  platform management  tools. Implementation will be done within two years.

Alcatel’s  Intelligent  Network  platform  currently  installed  at  Brasil Telecom  will  evolve  to  version  2.3,  making  it the most modern in the Brazilian  market  today. With this product, Brasil Telecom will be able to offer  its  clients  a  complete portfolio of services, such as 0800, 0300, 0500,  0900,  voice  VPNs,  fixed  prepaid,  prepaid  telephone  card,  and telephone credit card, as well as Internet Call Waiting, which allows users to surf the web while simultaneously receiving telephone calls. In order to guarantee  an  easy  access  to users, the existing Service Switching Point (SSP)  will be enlarged and new points will be installed. SSP uses the high performance and high capacity of the Alcatel 1000 switching technology.

“The value added services offered by Intelligent Networks are essential for the  telecom operators’  success in the highly competitive market that the next  few  months  promises.  Such  services  are  absolutely  necessary to generate  revenue,  and also enable us to reduce defaults thanks to prepaid services”,  said  Yon  Moreira  da  Silva, Brasil Telecom’s vice president. “We've  been very pleased with our long partnership with Alcatel, with whom we  have  been  developing Intelligent Network services for many years”, he added.

Ludo Gys, vice president Product Marketing of Alcatel Network Applications, said:  “With  this  contract,  Alcatel  reaffirms  its position as the only supplier and  Intelligent  Network technology  holder  at Brasil Telecom, operating  the  most modern platform in Brazil. Evolution to version 2.3 is also  a technological reference that will allow Brasil Telecom to introduce NGN’s world related services. “

Alcatel  is  currently  a  world  leader  in intelligent networks, with 119 platforms operating in more than 60 countries.

About Brasil Telecom
Brasil  Telecom S.A. provides local, intra-regional long distance, network, data  communication  and  other value-added services to the states of Acre, Rondonia,  Mato  Grosso,  Mato  Grosso  do  Sul,  Tocantins,  Goias,  Santa Catarina,  Parana,  and Rio Grande do Sul, as well as the Federal District. This  operating area covers 23% of the population (over 40 million people), 25%  of  the Brazilian GDP (approximately R$276 billion in 2001) and 33% of the nation's territory (nearly 2.8 million km2).

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.  For  more information, visit Alcatel on the Internet:
http://www.alcatel.com.


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