BT leverages installed Alcatel platform to introduce nationwide Ethernet services



Network interconnects 120 points of presence linking core metropolitan routes throughout the UK

Paris , February 16 2004 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that British Telecommunications plc (BT) will introduce new Ethernet services over its existing nationwide network, which is based on Alcatel's proven multiprotocol, multiservice portfolio. This portfolio is designed with the advanced features necessary for BT to simply turn on new services when they choose, which allows BT to save money by using its existing network infrastructure and generate faster revenues by reducing time to market.

BT's Megastream Ethernet™ will run over the BT Multi-Service Intranet Platform (MSIP), at the heart of which is the Alcatel 7670 Routing Switch Platform (RSP) and the Alcatel 7470 Multiservice Platform (MSP), and is managed by the Alcatel 5620 Network Manager (NM).

"There is clear demand from our customers for Ethernet services," said BT spokesperson Mick Palfrey. "As part of our MSIP, the Alcatel portfolio has demonstrated the capabilities and flexibility required to meet stringent customer demands. Offering Ethernet services over this existing product base allows us to deploy these new services reliably, quickly and cost-effectively. It's a great example of profiting from our existing assets which, in today's economic climate, is key."

"The market for Ethernet services is expected to snowball in the next five years, offering service providers a significant growth opportunity," said Basil Alwan, president of Alcatel's IP activities. "By leveraging the existing network infrastructure to introduce these new services, BT is demonstrating the scale and future-proof capabilities of our offering. BT's customer base, in turn, benefits from the rapid introduction of a cost effective Ethernet offering."

Alcatel's IP-enabled multiservice network portfolio provides the reliability, scalability and multiprotocol performance necessary for service providers to expand their service offerings as they choose. Multiple concurrent services can be provided over this platform, including multiprotocol label switching (MPLS)-based Internet protocol (IP) Virtual Private Network (VPN), IP-enabled Frame Relay VPN, Ethernet-Frame Relay service interworking, transparent LAN services (TLS) and circuit emulation. Alcatel provides carriers with the ability to add multiple services over their existing infrastructure while protecting established, high revenue services, and scale their network to meet the exploding growth of IP traffic.

About BT
British Telecommunications plc (BT) is a wholly owned subsidiary of BT Group plc, the holding company for the BT Group of companies. BT is one of the world's leading providers of telecommunications services and one of the largest private sector companies in Europe. Its principal activities include local, long distance and international telecommunications services; mobile communications; Internet services; and IT solutions.

About Alcatel
Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or to their employees. Alcatel leverages its leading position in fixed and mobile broadband networks, applications and services to bring value to its customers in the framework of a broadband world. With sales of EURO 12.5 billion in 2003, Alcatel operates in more than 130 countries.

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