Alcatel-Lucent builds first commercial WiMAX network in Germany

Bangalore

September 5th, 2007

Alcatel-Lucent is deploying Germany's first commercial universal WiMAX
network - based on the 802.16e-2005 standard (also known as Rev-e) - in the Saar
region for VSE NET, a regional telecommunications service provider in
Saarbrücken. The project is being conducted in close cooperation with VSE NET,
Inquam Broadband - a nationwide license holder in Germany - and Alcatel-Lucent.
VSE NET is establishing the first regional WiMAX network in an area not covered
by conventional DSL technology. Work on the network will start in the autumn of
2007, and commercial operation is set to commence in January 2008.

The network will support high-speed Internet access and voice over IP (VoIP)
and other data services with transfer rates of up to six megabits per second
(Mbps). In the initial stage of the deployment, wireless broadband will be made
available to residential and business customers in the sparsely populated
northern Saar region, where it is not economically viable to build a
conventional DSL infrastructure. Based on the WiMAX Rev-e standard and operating
in the 3.5 GHz frequency band, the VSE NET broadband network will enable
stationary, nomadic and mobile applications and will efficiently complement
existing landline-based broadband services.

"Alcatel-Lucent's advanced WiMAX solution will enable us to deliver a
wide range of broadband services, including high-speed Internet access and voice
over IP (VoIP), in areas of the Saar region that are currently
under-served," said VSE NET Director Michael Leidinger at the signing of
the agreement. "WiMAX is a key technology that will let us set up a
broadband network quickly and economically, with a minimum number of base
stations, and without costly civil engineering work to lay copper or optical
fiber cable."

"This contract is an example of how WiMAX complements existing broadband
technologies in a partnership between service providers, infrastructure
suppliers and license partners," added Christian Reinaudo, President of
Alcatel-Lucent's activities for Europe and North. "We're proud that our
technology and expertise will be a critical part of the creation of Germany's
first commercial WiMAX Rev-e network."

Under the agreement, Alcatel-Lucent will provide its compact WiMAX base
stations as well as wireless access controllers to support the seamless handover
of mobile broadband subscribers between individual base stations, allowing VSE
NET's customers to benefit from the service while moving. Alcatel-Lucent also
will be responsible for installing, commissioning and maintaining the network.