Paris and Shanghai, September 21, 2011 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) is to expand and upgrade China Telecom’s 3G network, doubling capacity and increasing coverage and speeds as subscriber numbers rise. As smartphone ownership and mobile broadband demand increase dramatically in China this upgrade will satisfy customers’ needs now, while laying the groundwork for a future move to 4G LTE (long-term evolution) data speeds.

China is racing into the mobile millennium: in the second half of 2010, 43% of the world’s new mobile broadband connections were in China. China Telecom itself operates the largest 3G CDMA mobile network in the world, adding around three million new 3G subscribers every month, as well as being the world’s largest wireline and broadband service provider.

As China Telecom expands its customer base, the upgrade of the 3G CDMA network will maintain quality, reliability and efficiency while building a clear path for a future where more subscribers demand even faster connections.

Wei Leping, Chairman of China Telecom Science & Technology Committee, said: “Working with Alcatel-Lucent gives us confidence that we can attract a growing number of subscribers in China, knowing that we can offer all our customers, old and new, the services, speeds and experience they expect, now and in the future.”

In addition to the increase in capacity, under the agreement Alcatel-Lucent will lower associated costs across 56 cities in 9 provinces.  Customers will experience higher data speeds and improved quality of voice and data services while giving China Telecom a competitive advantage to attract new subscribers.

Rajeev Singh-Molares, President of Alcatel-Lucent’s activities in the Asia-Pacific Region, said: “Alcatel-Lucent’s long history of CDMA leadership together with our knowledge of the China market and China Telecom’s network allows us to help them meet rising demands for mobile broadband.  Our expertise and understanding will allow China Telecom to maintain quality as their customer base grows, as well as prepare for the faster future of 4G LTE mobile broadband, and for the new applications and demands it brings.”

About Alcatel-Lucent’s CDMA Leadership

Alcatel-Lucent is the world leader in the CDMA market by revenues, with a market share of 43.3%[1] Alcatel-Lucent has more experience than any other telecom player in integrating and re-architecting CDMA networks, and continues to innovate in CDMA/EV-DO to keep CDMA operators competitive during the transition to 4G. Alcatel-Lucent has more than 70 CDMA customers in 40 countries – and supports five of the top six global CDMA operators.

Alcatel-Lucent and China Telecom

Alcatel-Lucent has been a partner of China Telecom since 2008.  Under this new agreement, Alcatel-Lucent will expand and upgrade the 3G CDMA network with its CDMA/EV-DO Radio Access Network portfolio. This includes Alcatel-Lucent’s multi-carrier, high-capacity and LTE-ready 9916 BTS and separate 9234 Remote Radio heads, as well as the performance-increasing Multi-Carrier EV-DO Modem (EVM).  Alcatel-Lucent will also deploy its CDMA Mobile Packet Core network solution including the 9290 Mobility Manager and 9281 Packet Switch.
Alcatel-Lucent is committed to partnering with service providers to help maximise the potential of their network and lower costs while maintaining customer satisfaction in the face of rising demand for data.  Developments in CDMA technology as well as the new lightRadio™ product family, backed up by the world-renowned Bell Labs are enabling customers to benefit from the latest innovations, set to transform the world of mobile communications.