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Alcatel-Lucent and Telstra to Deliver Australia's Largest Business Network - The Telstra Next IP(TM) Network

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Alcatel-Lucent
54 rue la Boetie
Paris, 75008
France



Press release date: November 19, 2007

PARIS, November 19/ -- Telstra Corporation Limited and Alcatel-Lucent (Euronext Paris: ALU) (NYSE: ALU) today announced that they have reached a critical milestone in the roll-out of Telstra's next generation Internet Protocol (IP) network (the Telstra Next IP(TM) network), by successfully deploying close to 900,000 IP DSLAM (ISAM) ports.

A critical piece in the Telstra Next IP(TM) network, Alcatel-Lucent's ISAM provides higher speed capability of up to 24 Mbps and opens up the potential for a new range of triple play based services.

Alcatel-Lucent is one of Telstra's strategic suppliers and the end-to-end network integrator for the first phase of their wireline transformation project, which has established the largest business network in Australia, servicing 95 per cent of businesses.

"The Telstra Next IP(TM) network, coupled with Telstra's Next G(TM) wireless network, creates a platform that will transform communications for Australian businesses and governments," said Telstra Executive Managing Director of Network & Technology, Mr Dan Burns. "The Telstra Next IP(TM) network further demonstrates Telstra's commitment to investment in high-speed broadband access in Australia under the right regulatory settings."

"This has been an impressive team effort from both Telstra and Alcatel-Lucent to deploy and integrate close to 900,000 ISAMs ports," says Frederic Rose, President of Alcatel-Lucent's activities in Europe, Middle East, Africa and Asia. "The rapid integration of our IP DSLAM into Telstra's IP network provides them with a future-proof solution offering greater scalability and access speeds as well as enhanced services."

Alcatel-Lucent remains the uncontested market leader in broadband access with more than 142 million DSL lines shipped at the end of 2Q 2007. More than 165 customers have adopted the ISAM product family globally - including 80% of the top 20 DSL operators in the world.

About Telstra

Telstra is Australia's leading telecommunications and information services company, with one of the best known brands in the country. Telstra offers a full range of services and competes in all telecommunications markets throughout Australia, providing 9.8 million Australian fixed line and 9.2 million mobile services. Telstra's network and systems infrastructure underpins the carriage and termination of the majority of Australia's domestic and international voice and data telephony traffic. Telstra owns 50% of FOXTELŽ, and its international businesses include CSL New World Mobility Group, Hong Kong's leading mobile operator, TelstraClear Limited, the second largest full service carrier in New Zealand and REACH Ltd, a provider of global connectivity and international voice and satellite services, as well as SouFun Holdings Limited, a leading real estate and home furnishings website in China. For more information, visit Telstra on the Internet: http://www.telstra.com.au

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end-users. As a leader in fixed, mobile and converged broadband networking, IP technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at home, at work and on the move. With operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry, and one of the largest research, technology and innovation organizations in the telecommunications industry. Alcatel-Lucent achieved adjusted proforma revenues of Euro 18.3 billion in 2006 and is incorporated in France, with executive offices located in Paris. [All figures exclude impact of activities transferred to Thales]. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com

Alcatel-Lucent Press Contacts

Regine Coqueran Tel: +33-(0)1-40-76-49-24 regine.coqueran@alcatel-lucent.com

Mark Burnworth Tel: +33-(0)1-40-76-50-84 mark.burnworth@alcatel-lucent.com

Source: Alcatel-Lucent
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