Alcatel wins multimillion Euro contract to develop a new mobilenetwo

Alcatel wins multimillion Euro contract to develop a new mobile network in Armenia

Alcatel

Aug 3 2005

Paris, August 3, 2005 – Alcatel (Paris: CGEP.PA and NYSE: ALA)
today announced the signing of a multimillion contract to deploy
a GSM/GPRS mobile network for VivaCell, the second mobile operator
in Armenia. Alcatel partnered in this project with Intracom company,
a Greek telecommunications integrator. Implementation of this project
will enable VivaCell to anticipate the growing demand for a reliable
mobile communication network in the country and to provide advanced
high-quality services to the Armenian end-users.

Under the terms of this contract, Alcatel will deploy a complete
GSM network based on its industry-proven multi-standard Evolium~Y
solution. Alcatel’s solution will cover the whole territory of
Armenia and will include Mobile Switching Centers (NSS) for 400
000 subscribers, more than 200 Base Stations Sub-Systems (BSS) with
natively embedded GPRS capabilities, as well as a backbone solution
based on Alcatel’s next-generation SDH Optical Multi-Service Node
(OMSN) systems and access network.

Alcatel will also deliver its Open Services Platform (OSP) solutions,
an IT-based system which will enable VivaCell to rapidly develop
and deploy new high-value mobile services such as mobile VPN and
convergent payment. These new services are expected to help building
customer loyalty and support the operator’s efforts to increase its
market share in the country.

Commercial launch of the network was announced on July 1st, 2005.

Mr. Ralph Yirikian, General Manager of VivaCell said: “VivaCell’s
vision is to be the Leading Provider of Mobile Communications in
Armenia and to achieve this vision we have partnered with leading
worldwide suppliers to provide brand new state of the art technology,
partners like Intracom – for the network system integration, Alcatel –
for the radio, transmission, switching and IN (Intelligent Network)
platform and some others”.

Johan Vanderplaetse, vice-president of Alcatel in the Commonwealth of
Independent States (CIS) added: “This contract not only gives Alcatel a
good footprint in the mobile market in Armenia but it also reinforces
our presence in the overall CIS market. We are committed to enable
VivaCell to become a stronger competitive operator in Armenia and
to help them provide the Armenian end-users with the most advanced
mobile services”.

Alcatel is one of the leading suppliers in providing advanced mobile
communication solutions in Russia and in the CIS, a position the
company established as early as 1994 when it introduced the first
Russian GSM network in the city of Nizhniy Novgorod. To date Alcatel
Evolium~Y solutions have already been installed in several markets
of the CIS and in more than 35 cities in Russia.

Alcatel’s Evolium~Y multi-standard platform natively integrates all
GSM-based mobile technologies, from GSM/GPRS to EDGE and UMTS, and
allows all solutions in one, for a smooth upgrade of existing networks.

About K Telecom (VivaCell) K Telecom CJSC was granted a license to
operate the second mobile communication network in the Republic of
Armenia in November 2004 and in seven months K Telecom announced
the commercial launch of its network as of July 1st, 2005 under the
VivaCell brand name.

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 employees. Alcatel brings its leading position in fixed and mobile
broadband networks; applications and services, to help its partners
and customers build a user-centric broadband world. With sales of
EURO 12.3 billion and 56,000 employees in 2004, Alcatel operates in
more than 130 countries

http://www.alcatel.com/