Alcatel selected by CTM for Macau's IP transformation

Lays foundation for next generation network to serve fast-evolving market needs

Hong Kong, November 15, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) and Companhia de Telecomunicacoes de Macau S.A.R.L. (CTM) today announced a collaboration to roll out critical infrastructure that will enable sophisticated Internet Protocol (IP) communications services for CTM's business and consumer customers in order to realize the operator's "Digital Macau" vision.

CTM's "Digital Macau" project delivers a new generation of communications services that will keep pace with and support the Macau Special Administrative Region's sustained economic growth. Next-generation network services will be provided in four key areas: mobile, broadband, high-speed data services and applications. Following its next-generation network services launch which is expected by the first quarter 2007, CTM will further develop advanced services, and bandwidth on demand all with the differentiated quality of service (QoS) necessary to meet the needs of its customers.

“CTM is committed to provide a quality communications network that responds immediately to the current explosive demand for services, and is also designed to handle the future communications and entertainment demands of Macau's growing tourist economy. This partnership will definitely mark an important step for CTM in building "Digital Macau", supporting the growing economy and fulfilling customers' needs,” said Mr. Phil Green, Chief Executive Officer of CTM.

“We are honored to collaborate with CTM as they introduce this unique technology that supports their immediate needs in realizing "Digital Macau" and provides the flexible and service-rich foundation to expand their offerings as their business requirements and subscriber growth demand," said Basil Alwan, President of Alcatel IP Division.

The demand for advanced multimedia and data services in Macau is expected to increase sharply in the coming years as investments in the tourism and gaming sector increase. Economic growth is averaging eight to ten percent per year. In 2006 alone, gaming revenues will total US$6 billion – matching those of Las Vegas – and hotel room capacity is expected to double to 30,000 by the end of 2008.

Alcatel's IP portfolio has key features – including high-availability, quality of service, and scalability. At the heart of Alcatel's solution for CTM is the Alcatel 7750 Service Router (SR), a superior multiservice edge router, built for service providers who are looking to deliver a new wave of business and residential services on a single IP/MPLS network.

The solution also includes the Alcatel 5620 Service Aware Manager (SAM), which will enable CTM to rapid provision of VPLS, VPRN, Internet enhanced services (IES) and virtual leased line (VLL) services, for a smooth evolution from traditional routers to service routers.

With more than 150 customers in 65 countries, Alcatel is demonstrating that its IP portfolio is ideally suited for the needs of operators who are transforming their networks for a new phase of higher-value, user-driven service delivery. According to Synergy Research Group, Alcatel was #2 in the Services Edge Router category in Q2 2006, with 19 percent market share, following five consecutive quarters of market share gain. Alcatel is involved in more than 40 triple play projects and another 40 network transformation projects worldwide. IPTV services are expected to reach over 70 million subscribers by 2010.

About Alcatel
Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks; applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com

About CTM
Formed in October 1981, Companhia de Telecomunicacoes de Macau S.A.R.L. (CTM) is a joint venture of the international telecommunications giants Cable and Wireless and Portugal Telecom, together with CITIC Pacific and Macao Post. Being the only full telecom service provider of Macau, CTM plays an important role in the development of the telecom infrastructure and strives to provide world class telecommunications services to Macau, which included Fixed Telephony, Mobile, Internet and Enterprise Solutions. For more information about CTM, please visit www.ctm.net.

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