Quarterly Communiqué – Q2 2005

Alcatel Mobile Communications Group

u Isabelle Warnier
+ 33 1 30 77 37 71

All rights reserved © 2005, Alcatel

Highlights

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MCG Sales Q2: 958

Alcatel and Intel collaborate on AdvancedTCA® platforms to improve time to
market for mobile service providers.
Alcatel launches new UMA solution, which provides access to GSM and GPRS
mobile services over Bluetooth and Wi-Fi unlicensed spectrum technologies.
Alcatel activated the EDGE function of the Alcatel-deployed GSM/GPRS network
in France for Orange. Coverage: 85% of the total population.
China Unicom uses Alcatel's mobile solution to serve up World Table Tennis
Championship broadcast.
Alcatel and Datang Mobile demonstrate end-to-end TD-SCDMA solution at
2005 TD-SCDMA International Summit in Beijing.

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Alcatel Mobile Infrastructure (in units shipped)
Second Quarter 2005

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MULTISTANDARD GSM/GPRS/EDGE/W-CDMA
Base Transceiver
Base Stations (BTSs)
Transceiver Stations (BTSs) 0 Evolium
6258 EMX + Base Station
Alcatel 1000—S12
Alcatel
(New9100 MBS
Nodes)

2G TECHNOLOGY
GSM (900, 1800, 1900)
2G Micro Base Transceiver Stations (BTSs) 619 Evolium Micro Base Station — Alcatel 9110 Micro-BTS

Base Station Controllers (BSCs) 820 Evolium Base Station Controller — Alcatel 9120 BSC

Transcoders (TC's) 125 Evolium Transcoder — Alcatel 9125 TC

Mobile Switching Centers MSCs CREATION 17 Evolium MSC/VLR — Alcatel 1000 MSC (GSM & UMTS)
Mobile Switching Centers MSCs EXTENSION 112 Evolium MSC/VLR — Alcatel 1000 MSC (GSM & UMTS)
HLR/AuC CREATION 17 Evolium HLR — Alcatel 1422 HLR/AuC (GSM & UMTS)
HLR/AuC EXTENSION 37 Evolium HLR — Alcatel 1422 HLR/AuC (GSM & UMTS)

CDMA ANSI IS-41 + TDMA-IS-136

Mobile Switching Centers (MSCs) 1C + 3E EMX + Alcatel 1000 S12 (New Nodes)
HLR/AuC 2E Evolium HLR — Alcatel 1422 HLR/AuC
C: Creation, E: Extension

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Alcatel Mobile Infrastructure (in units shipped)
Second Quarter 2005

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2.5G TECHNOLOGY
GPRS/EDGE

BSC/MSC Packet Control Units 46 Evolium MFS — Alcatel 9135 MFS

Serving GPRS Support Nodes (SGSN) 0 Alcatel 1000 GPRS SGSN

Gateway GPRS Support Nodes (GGSN) 0 Alcatel 1000 GPRS GGSN

3G TECHNOLOGY
UMTS Radio Access

Node B incl. above Evolium UMTS Node B — Alcatel 9100 MBS

Radio Network Controllers (RNCs) 17 Evolium UMTS RNC — Alcatel 9140 RNC
UMTS Core
Mobile Switching Centers (MSCs) incl.above Evolium MSC/VLR — Alcatel 1000 MSC (GSM & UMTS)

HLR/AuC incl.above Evolium HLR —Alcatel 1422 HLR/AuC (GSM & UMTS)

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 List of contracts – Mobile Radio
Second Quarter 2005

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Country: France
Customer: ADP
Technology: WiMAX Alcatel
Alcatel produced
produced the
the first
first pilots
pilots for
for professional
professional use
use by
by immediately
immediately
Contract value: not disclosed taking
taking into account the fixed and nomadic aspects of WiMAX.
into account the fixed and nomadic aspects of WiMAX.
PR Issue: April 4th

Country: Spain
Customer: Telefonica Moviles Alcatel
Alcatel supplied
supplied and
and installed
installed 3G/UMTS
3G/UMTS radio
radio based
based stations,
stations,
Technology: 3G/UMTS called
called Evolium™ Node II,, which
Evolium™ Node which are
are particularly
particularly suited
suited to
to "closed
"closed
Contract value: not disclosed environments"
environments" and
and Indoor
Indoor Broadband
Broadband traffic.
traffic.
PR Issue: April 28th

Country: Paraguay
Alcatel
Alcatel has
has been
been awarded
awarded aa new new GSM/GPRS
GSM/GPRS mobile
mobile network
network
expansion
expansion by by Hola
Hola Paraguay,
Paraguay, aa 1900MHz
1900MHz mobile
mobile service
service
Customer: Hola Paraguay, S.A.
provider
provider in in Paraguay.
Paraguay. With
With this
this project
project the
the service
service provider
provider will
will
Technology: GSM/GPRS
extend its network capacity while updating the
extend its network capacity while updating the existing existing
Contract value: not disclosed
infrastructure
infrastructure with
with the
the latest
latest mobile
mobile technology
technology enhancements
enhancements for for
PR Issue: May 24th
future
future evolutions.
evolutions.

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 List of contracts – Mobile Core / Mobile NGN
Second Quarter 2005

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Country: USA
Alcatel
Alcatel deployed
deployed aa mobile
mobile Next
Next Generation
Generation NetworkNetwork (mobile
(mobile
NGN)
NGN) core network solution. Alcatel's solution is designed to
core network solution. Alcatel's solution is designed to
Customer: Dobson
enable
enable Dobson
Dobson toto evolve
evolve its
its current
current network
network toto support
support advanced
advanced
Technology: NGN mobile
mobile services
services with
with one
one simplified,
simplified, high-capacity,
high-capacity, core
core network
network
Contract value: not disclosed solution
PR Issue: April 26
solution,, as
as well
well as
as supporting
supporting thethe growth
growth ofof its
its GSM
GSM subscriber
subscriber
base
base and
and helping
helping Dobson
Dobson reduce
reduce operating
operating expenses.
expenses.

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 List of contracts – Mobile Applications
Second Quarter 2005

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Alcatel
Alcatel and
and Istituto
Istituto Geografico
Geografico DeAgostini
DeAgostini -- aa leading
leading Italian
Italian publishing
publishing
house,
house, with
with an
an unrivalled
unrivalled expertise
expertise inin cartography
cartography -- have have developed
developed anan
Country: Italy advanced solution for location services, based on
advanced solution for location services, based on Assisted GPS Assisted GPS
Customer: DeAgostini technology.
technology. By By simply
simply pressing
pressing aa button,
button, itit will
will be
be possible
possible toto calculate
calculate the
the
Technology: LBS geographical
geographical position
position of of aa UMTS
UMTS terminal
terminal on on detailed
detailed andand always
always updated
updated
PR Issue: April 19th maps,
maps, quicker
quicker and
and more
more precisely
precisely ifif compared
compared with with aa standard
standard GPSGPS system.
system.
Moreover,
Moreover, this
this solution
solution will
will reduce
reduce the
the amount
amount of of complex
complex location
location
calculations
calculations for
for the
the mobile
mobile terminal,
terminal, and and this
this will
will end
end upup in
in battery
battery savings.
savings.

Alcatel and TMN, the largest Portuguese mobile network operator, signed a
Country: Portugal partnership enabling Alcatel to deliver a richer content provisioning
Customer: TMN service for mobile users, offering additional Java games to be
Technology: Gaming available through TMN's "i9" mobile portal. This new solution is based on
PR Issue: May 23rd Alcatel's "Mobile Kiosk", which allows content aggregation and service
delivery in a hosted and operated mode, integrated within the TMN i9
portal.

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 List of contracts – New Media
Second Quarter 2005

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Valencia Louis Vuitton, Act IV, June 16th-22nd “The richness of additional
data and new approaches
Valencia Louis Vuitton, Act V, June 25t –26th offered by Alcatel in its
simulation has enabled
Alcatel managed and to distributed mobile and internet services through its regatta spectators in real-
3D offering called “Live Sailing” on mobile phones and “Virtual TV” on time to have a good time
personal computers connected to the Internet, including animations enriched with in front of their computer
race –related information. With these two innovative services, which were sold to screens or their mobile
end – users worldwide, Alcatel enabled a unique live experience of America’s phone displays, without
Cup sailing and provided Mobile and Internet services were available for missing the show at any
subscribers through an exclusive new media a taste of the advanced stage.” (Finanzas.com)
new media services.

In Italy, Alcatel’s content distribution agreement; Alcatel had signed with LA7
and the Telecom Italia Group (including Telecom Italia Mobile). Thanks to its
business development efforts, Alcatel will be replicating similar exclusive rights
resale deals with Mobile and Fixed operators worldwide over the next two years
of 32nd America's Cup sailing.

Dedicated website
http://www.alcatel.com/newmedia/

All rights reserved © 2005, Alcatel

 Page 9

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