Alcatel-Lucent and Sagem Communications to Jointly Develop Femto Cell Base Stations to Support 3G Services Inside Homes and Offices

Base Station Router (BSR) Femto combines UMTS/HSPA radio access network elements into a single, small, easy-to-deploy unit

BERLIN, Broadband World Forum, Oct. 8 -- Alcatel-Lucent (Euronext Paris and NYSE: ALU) and Sagem Communications (SAFRAN Group) today announced that the two companies are collaborating on the commercial development of a femto cell base station platform that enables mobile operators to provide consumers and enterprises with third-generation (3G) UMTS/HSPA network coverage in their homes or business locations. The Base Station Router (BSR) Femto can help mobile operators improve indoor coverage, reduce operating and capital expenditures by simplifying network architectures and easing installation, and noticeably improve subscribers' quality of experience for mobile broadband and voice services.

Based on Alcatel-Lucent's revolutionary "flat IP (Internet Protocol)" architecture, the UMTS/HSPA BSR Femto flattens the mobile network by integrating and collapsing the UMTS/HSPA radio access network elements, including the base station and radio network controller (RNC), into a single, small unit about the size of a TV set-top box. This innovative approach enables operators to deploy and optimize smaller form-factor, stand-alone base stations without creating an overwhelming network management challenge and overtaxing existing radio network controllers.

"The UMTS/HSPA BSR Femto offers significant advantages over competing solutions due to the fact that it combines all radio access functions into a single, compact device, eliminating the need to deploy additional RNCs," said Alain Biston, president of Alcatel-Lucent's W-CDMA activities. "The BSR Femto is an ideal solution to help mobile operators address the demand for high- quality mobile broadband and voice services in the home."

"By taking advantage of Sagem Communications' expertise in the development of consumer electronics products to help package and manufacture the BSR Femto for mass market consumption, we will realize significant time to market and cost benefits," Biston added.

As Europe's number one manufacturer of DSL residential gateways as well as digital terrestrial and IP TV set top boxes, Sagem Communications was perfectly positioned to design BSR Femto in collaboration with Alcatel-Lucent. Sagem Communications' extensive capabilities and experience in marketing DSL equipment for the home, which is supporting triple play services today, will contribute its expertise to transition the BSR Femto into a mass market device.

Through this collaboration, Alcatel-Lucent and Sagem Communications have already achieved significant milestones in the BSR Femto development effort, including the completion of voice and data calls, lab demonstrations with key customers and the establishment of a program of field trials (to be conducted in the fourth quarter of this year). These achievements have been made possible by leveraging the respective strengths of the two companies.

"The Alcatel-Lucent flat-IP architecture and the BSR Femto are a win-win for mobile operators and their subscribers," said Patrick Sevian, CEO of Sagem Communications. "Our consumer electronics expertise and experience with home- networking applications, combined with Alcatel-Lucent's deep knowledge of mobile networking, is an ideal combination."

Under the collaboration agreement, Alcatel-Lucent will provide its flat IP and UMTS/HSPA expertise, networking equipment and software and end-to-end integration and support for the development of the BSR Femto. Sagem Communications will lend its enhanced home networking capabilities and expertise in developing IP, VoIP and DSL solutions for the mass market.

The BSR Femto uses a DSL connection in a home or office building to backhaul voice and data traffic onto an operator's existing UMTS/HSPA network, enabling operators to offload traffic from the macro-network. It supports circuit-switched voice and data applications, packet-switched data applications, HSPA and IP-Multimedia Subsystem (IMS)-based networks. It also works with all 3GPP-compliant UMTS/HSPA handsets.

Two versions of the BSR Femto are planned for UMTS/HSPA networks -- a standalone 3G unit with Ethernet connectivity to a DSL modem and an integrated unit that supports UMTS/HSPA, DSL and WiFi. Alcatel-Lucent is also developing a CDMA/EV-DO based BSR Femto.

About Sagem Communications

Sagem Communications (SAFRAN Group) is a major player in the fields of communication, having acquired international positions thanks to a high innovative potential. The SAGEM products benefit from a particular awareness in the following activities: printing terminals, residential terminals, digital TV set-top boxes, digital TV, systems, electronic metering. For more information, visit the following Web Sites: and

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:

Source: Alcatel-Lucent

CONTACT: Sagem Communications

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