Alcatel-Lucent confirms 1Q’09 broadband access leadership, performing strongly in VDSL and GPON

Alcatel-Lucent leads in 1Q’09 DSL, IP DSL & VDSL shipments - according to Dell’Oro; 30% more GPON customers since 1Q’08

Paris, June 8, 2009 – Alcatel-Lucent (Euronext Paris and NYSE: ALU) today confirmed its position as the market leader in 1Q’09 DSL, IP DSL and VDSL shipments – backed by the latest Dell’Oro DSL Access Concentrator Report¹.From a gigabit passive optical network (GPON) perspective, Alcatel-Lucent announced impressive growth figures as well – extending its customer reference list at a rate of 30% since 1Q’08.

In 1Q’09, Alcatel-Lucent shipped nearly 5.4 million digital subscriber lines (DSL), which equals a market share of 34% (port shipments, according to Dell’Oro). Alcatel-Lucent thus raises its total number of DSL lines shipped to more than 190 million and continues its worldwide number-1 position in the DSL space, in a market environment where operators are investing more cautiously as a result of the weak global economy.

More importantly, however, Alcatel-Lucent has succeeded to dramatically expand its leadership in VDSL (the DSL-flavor and revenue-generator of the future) – all while increasing its overall DSL market share in all regions around the world (outside of APAC). This comes at the expense of its main competitors.

Building on this footprint, Alcatel-Lucent has again been identified as the leading player in the IPTV Access market - according to the latest MRG IPTV Market Leaders report². In its report, MRG confirms that Alcatel-Lucent is the only vendor focusing on all four (geographic) regions, and is deployed in 10 out of the top 25 IPTV service providers worldwide.

“Our sustained leadership in fixed broadband access builds to a great extent on our continuous innovations,” says Dave Geary, President of Alcatel-Lucent’s Wireline Networks activities. “We are very proud that our customers recognize this effort, by choosing for Alcatel-Lucent’s newer-generation access technologies - such as our market-leading IP DSL, VDSL and FTTH GPON and P2P fiber solutions. Actually, compared to twelve months ago, 30% more contracts have been added to our GPON customer reference list. Alcatel-Lucent is now involved in more than 95 FTTH projects – 80 of which are based on GPON technology. Alcatel-Lucent thus continues to lead the FTTH and GPON markets, serving leading operators such as Verizon, France Telecom, Portugal Telecom and Hong Kong Broadband Network Limited.”