Portugal Telecom selects Alcatel-Lucent to expand network to deliver new broadband solutions for residential customers

Alcatel-Lucent (Euronext and NYSE: ALU | PowerRating) today announced it has signed a major three-year agreement with Portugal Telecom to extend the capacity of its IP/MPLS network to support existing and new services to its growing customer base.

Leveraging Alcatel-Lucent's High Leverage NetworkTM (HLN) architecture, PT will evolve its converged IP/MPLS network to support new video rich content and data services.

The architecture will leverage an all-IP network layered with embedded intelligence and application awareness that improves the end-users experience as well as PT's ability to bring new services to market more efficiently. The platform will also enable Portugal Telecom to implement 100 Gigabit Ethernet, L2/L3 mobile backhaul and IPv6 services that will guarantee available bandwidth and an expanded address space to ensure the smooth introduction of the most sophisticated services.

'The growing popularity of video content brings new business opportunities, but also requires a thoughtful transformation of the network,' said Alfredo Baptista, CTO of Portugal Telecom.'The evolution of the existing network architecture and the full support of IPv6 and 100G, with Alcatel-Lucent's innovative approach, will give us the flexibility to cope with the growing demand for today's services and the capacity to offer exciting new services to meet our customer's needs in the future.'

'Portugal Telecom has a strong commitment to innovation and transformation of the services they provide to their customers,' said Adolfo Hernandez, President of Alcatel-Lucent in EMEA.

'With our High Leverage Network architecture we can work together with Portugal Telecom to transform their network, enhance their business and deliver new services in the most cost-effective way.'

About Alcatel-Lucent' solution As part of the agreement, Alcatel-Lucent will enhance PT's use of the 7750 Service Router, managed by the 5620 Service Aware Manager, to become the converged service edge for consumer Internet, IPTV and VoIP services, Carrier Ethernet VPNs services for enterprises and mobile backhaul services. The new, distributed architecture locates the IP service edge functionality at the edge of networks, close to subscribers, providing a significant increase in bandwidth per subscriber. Consolidation of multiple services on a converged network steamlines operations while adding flexibility to deploy new services faster. Support for 100 Gigabit Ethernet and IPv6 provides long term scaling to support high bandwidth and more attached devices to enable new services and business models.

About Alcatel-Lucent's High Leverage NetworkaEURAc The Alcatel-Lucent High Leverage NetworkaEURAc (HLN) architecture addresses the dual challenges of simultaneously scaling and managing network capacity to meet increasing bandwidth demand while delivering differentiated, revenue generating services. It achieves this by delivering scalable bandwidth at the lowest cost per bit and by embedding intelligence in the network to enable dynamic service creation and delivery. The foundation for the Alcatel-Lucent Application Enablement vision, the HLN architecture collapses multiple complex costly overlay networks into a simpler, fully optimized network that leverages technical innovations and embraces existing environments.

About Portugal Telecom Portugal Telecom is a global telecommunications operator with more than 72 million clients in 14 countries, namely, Brazil and Africa. In Portugal, where it holds a leading position in the markets in which operates, it provides a wide portfolio of fixed and mobile services, including broadband access, voice and television, acting in all segments of the telecommunications sector: private, residential, enterprise solutions and wholesale. Its international investments, with a particular focus on the mobile segment, represent 85% of its customer base and around 50% of its revenues.

Portugal Telecom assumes itself as the Portuguese entity with the biggest national and international projection and has a diversified business portfolio in which quality and innovation are determinant aspects, being on the same level of the most advanced international companies in the sector.

Portugal Telecom is ranked on the Euronext and New York Stock Exchange. Information about the company is available in Reuters via the code PTC.LS and PT and in Bloomberg via the code PTC PL.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted transformation partner of service providers, enterprises, strategic industries such as defense, energy, healthcare, transportation, and governments worldwide, providing solutions to deliver voice, data and video communication services to end-users. A leader in fixed, mobile and converged broadband networking, IP and optics technologies, applications and services, Alcatel-Lucent leverages the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries and the most experienced global services organization in the industry, Alcatel-Lucent is a local partner with a global reach. Alcatel-Lucent achieved revenues of Euro 15.2 billion in 2009 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com, read the latest posts on the Alcatel-Lucent blog http://www.alcatel-lucent.com/blog and follow us on Twitter: http://twitter.com/Alcatel_Lucent.

CONTACT: Alcatel-Lucent, Press Office e-mail: press@alcatel-lucent.com

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