Wireless Transmission Portfolio
Customer Presentation Peter Lizuch March, 2007
All Rights Reserved Alcatel-Lucent 2006, 21161

Agenda

1. Alcatel-Lucent is a Leader in the Microwave Market 2. The Added Value for the Carrier Market 3. The Added Value for the Mission Critical Networks Market 4. Ahead on IP-Transformation 5. Managed Services to Secure Customer Business Plans 6. Proof of Expertise 7. Conclusion
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Alcatel-Lucent is a Leader in the Microwave Market
3 | Wireless Transmission Portfolio and Solutions | December 2006
Alcatel-Lucent: Wireless Transmission Leadership
A market leader in microwave with 17% of global market share* Four active R&D centres More than 400,000 transceivers built Leadership in long-haul #1 Leadership in ANSI market #1
V e liz y F ra n c e V im e r c a t e I ta ly H.Q. C h in a
* according to Skylight Research

P la n o US

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Wireless Transmission Solutions for All Markets
TV broadcasters (both digital and analog) Defense and security (army, MOD, tetra, border control) Energy (oil & gas, power utilities) Enterprise and public sector

Private

Mission Critical Networks
Fixed backbones Fixed line extension for voice and/or data (cable/LAN extension) High speed Internet access in rural areas (DSL backhauling) Triple Play Convergence Mobile backhauling Mobile metro/backbone Convergence

Carriers

Mobile
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From Backhauling to Backbone

Its all about microwaves

Microwave 80 for metro

Microwave

WAC 40 BTS

Microwave BSC

East West North
OMSN Microwave for backbone

Mobile 2G and 3G

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Regional TV Studio

Metro TV Broadcasting

Backbone

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An Outstanding Product Portfolio

Short Haul

9400 AWY
Ideal solution for PDH SW configurable Ethernet ready
Mb/s 9500 MXC GHz Ideal solution for SDH and super PDH Ethernet and Gigabit Ethernet

New, available

9500 MSS
Mb/s GHz Packed-based node Any traffic, any capacity Adaptive modulation

New, 2007

9600 USY
Mb/s GHz Ideal for legacy SDH Up to 3+1/4+0 STM-1 High system gain
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Long Haul for Backbone

The Strength of Being Number One Key market requirements Full indoor systems Low-medium capacity (NxE1/DS1, NxE3/DS3) High capacity (OC3/NxSTM-1) High system gain for long distances Protected configuration for high link availability Key differentiators Number 1 worldwide in High and Low capacity Worldwide customer base End-to-end transmission portfolio with common management system Unique skills in network design and propagation models Large scope of managed services

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Long Haul

9600 LSY
Ideal for any backbone Up to 7+1/8+0 STM-1 Very high system gain

155 1.2 Gb/s

MDR 8000
Ideal for any backbone Up to 1+0/1+1 STM-1 Compact version
Ideal for long distance FCC standard Medium-high capacity
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The Added Value for the Carrier Market
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Challenges of the Carrier Network Market Carriers Networks GSM/UMTS backhauling Mobile TV WiMAX backhauling Fixed broadband access National/regional backbones Fixed backbones High speed Internet access in rural areas (DSL backhauling) Triple play Convergence 1. OPEX reduction

Challenges

Mobile Fixed
2. Fast deployment 3. Flexible and future-proof
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Microwave Value Proposition for Carriers
Optimising the Total Cost of Ownership

1. OPEX Reduction

LL: 100 (index) MW link: 10-20 Quick ROI

Microwave Leased Lines

Break-Even

2. Fast Deployment

Network ownership Algeria Orascom - 110 PDH hops in 2 months Thailand- TA-Orange 25 hops per week on average and up to 50 hops per week during peak phase
3. Flexible, Future Proof
2 Mb/s up to 311 Mb/s TDM and Ethernet

E1 per site

Real-Time

GSM EDGE UMTS HSDPA

Hi-speed internet VoD, Gaming, Music download

Non-Real-Time

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
2010 Ethernet access Circuit Packet
E1 access voice sms mms data New Increase service services penetration Packet predominant

IP/TDM

Circuit predominant
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The Solution for Carrier Networks

Backhauling

Last Mile Aggregation Metro
Microwave Microwave Microwave BSC BTS Microwave
- Capacity up to 32xE1 - Ethernet interfaces
- SDH up to 4 channels - Wide and narrow band filers - Ethernet interfaces

9500 MXC

- Capacity up to 75xE1 - Aggregation capability - Ethernet interfaces - SDH up to 2 channels - Wide band filter - Ethernet interfaces - SDH up to 8 channels - WMSN configuration - Aggregation, Ethernet
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The Added Value for the Mission Critical Networks Market
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Mission Critical Networks Market Mission Critical Networks Oil and gas and power lines supervision networks Strategic networks for defense Homeland security Digital TV broadcasting DVB-T

1. Network ownership

2. Harsh environment 3. Security and flexibility

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Microwave Value Proposition for Private
Security and Independency for the Customers Key differentiators Topology independent Terrain independent Capillary coverage Flexibility Fast deployment Reduced OPEX Network ownership Security

Energy

Defence and Security

Digital TV Broadcasting

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The Solution for Digital TV Networks

Broadcasting-feed

Contribution
Microwave Urban coverage Regional Studio Main Studio Microwave for backbone Rural coverage Regional Studio - Capacity up to 32xE1 - Ethernet interfaces

Distribution

Main Studio
SDH up to 4 channels - Wide and narrow band filers - Ethernet interfaces
SDH up to 2 channels - up to 8xE3 - Wide band filter only - Ethernet interfaces

9600 LSYc

SDH up to 8 channels - WMSN configuration - 2 channels in compact configuration - Unidirectional link
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Ahead on IP-Transformation
18 | Wireless Transmission Portfolio and Solutions | December 2006
Innovation in the Broadband IP World

Alcatel-Lucent 9500 MSS

Node concept to further diminish hardware in the field, and network elements to manage Support capacity changes in line with demand Single platform from backhauling to metro

Node Concept

IP Packet Switching
Enable support of IP services with QoS, in line with service introduction Optimize bandwidth management

Adaptive Modulation

Optimize transmission in air with adaptive modulation thanks to a better use of the scarce resource (spectrum)
Value Goes Up Cost Goes Down
Alcatel-Lucents next generation microwave solutions allow: Reduction in network TCO Seamless launch of IP broadband services Smooth upgrade of existing transmission nodes
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9500 MSS Delivers Huge Gain in Capacity and Spectrum Usage

GSM/EDGE

Mixed Packet and Circuit Traffic

Packet stream

TDM stream

Standard TDM solution

Packets Packets Packets Packets Packets TDM Radio Packets Circuit Circuit
Alcatel-Lucent packet radio solution Packet switching

Packets

50% BB Band Improvement

Circuits

Fading

Dedicated band per user

Total Band

Packet traffic

200% BB More Throughput
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Managed Services to Secure Customer Business Plans
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Managed Services

Expanding the Scope
Product related services Pre-commissioning Installation Test & com. Post-commissioning Repairing Spare parts mgt. Network related services Pre-commissioning Radio design Radio engineering Post-commissioning Radio upgrading Radio swapping Project related services Pre-commissioning Solution design Solution integration Post-commissioning Operation Maintenance

Project related services

Network related services Product related services installation

Link budget

Radio engineering Turnkey network solutions and managed services

Support and maintenance

Outsourcing

Consultancy

Network planning Installation and commissioning
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Staying Close to Business Objectives We optimize your existing transport infrastructure to future capacity needs We guarantee IP evolution for transport networks We introduce new technologies and applications

Technology anticipation

Business adaptation
We work in a multi-vendor and multi-technology context (GSM, UMTS, WiMAX, DVB, private networks, DSL etc.) We provide from consultancy to outsourcing services We optimize your OPEX and help you to secure your business plan

Performance assurance

We guarantee minimal disruption and maximum smoothness We provide optimized processes We work on SLA basis
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Proof of Expertise

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WiMAX Telekom - Austria

Transmission network for broadband service offer Contract with Austrian service provider, WiMAX Telekom, signed in QNationwide broadband WiMAX service up to 2 Mb/s Target is to sign up to 200,000 customers in 2008 by reaching 70% of population in rural and urban areas in Austria Alcatels role: Delivery of flexible and costeffective PDH solutions (contract up to 2008) Engineering, planning and network design support Future-proof platforms to support the current needs and able to evolve to full-IP transport nodes Strong support from conception to operational phases
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State of Michigan U.S.A.

Reliable transport for public safety Transport network of land mobile radio network made of 60 backbone hops and 124 backhauling hops Reliable solution for critical communications Support of broadband applications for public safety Alcatels role: Optimize the design of the network and provide the necessary on-site assistance Re-design of poorly performing paths, design high performing paths for the remainder of the network and design, integration and staging of the backbone network equipment Develop an interface from our TSM2500 network management platform to Motorolas MOSCAD alarm system Provide factory-based training, onsite training and on-site field assistance during the initial system turn-up

State of Michigan

26 | Wireless Transmission Portfolio and Solutions | December 2006
Video Broadcasting Administration - Guangdong Province (China)
Transmission for video broadcasting services Administration of the radio, film and television provider of the Guangdong province To deliver high quality video broadcasting service and new triple play offer to endusers Covering the whole Gaungdong province through 2000 km backbone transmission Alcatels role: Integration capabilities of microwave, ADM, network management and services Project management and technical support Advanced SDH wireless transmission made of 45 links 9600 LSY SDH (with 384 Tx/Rx) and 12 links UX PDH (with 48 Tx/Rx) Provide transmission system adapted to deploy triple-play services such as video and platforms to support Asian Games services needs
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SFR Vodafone - France

Backhauling for mobile network SFR is the number 2 mobile operator in France Around 60% of SFR backhaul is made of microwaves Alcatel has deployed over 5000 PDH links for their backhauling network Alcatels role: SFR fully delegates to Alcatel the design and deployment of PDH clusters End-to-end scope: feasibility, design and optimization, deployment Swap of leased lines connecting existing sites (GSM or Node B) according to SFR time frame

Leased Lines

Leas ed Lines

Microwaves 2000

Microwaves 2005
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Conclusion

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Why Partner With Alcatel-Lucent?
Alcatel-Lucent is a leader in the microwave market More than 300 customers worldwide already use Alcatel microwave solutions for mobile service providers, fixed service providers, utilities and other private customers Alcatel-Lucent is at the forefront of the broadband market with its new packet radio solution 9500 MSS in line with the IP transformation of your network Optimization for IP-based UMTS networks WiMAX broadband networks DSL backhauling, ISP networks ONE-STOP-SHOP: as a comprehensive telecom manufacturer, Alcatel-Lucent is able to provide the complete wireless transmission portfolio under a common management platform Alcatel-Lucent is able to provide managed services with direct customer support with a local presence worldwide

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Main References* More than 200 customers worldwide use Alcatel microwave equipment
* All trademarks are property of their respective owners
31 | Wireless Transmission Portfolio and Solutions | December 2006 All Rights Reserved Alcatel-Lucent 2006, 21161

www.alcatel-lucent.com

32 | Wireless Transmission Portfolio and Solutions | December 2006