Verizon Wireless Awards Alcatel-Lucent an Expected US$6 Billion Contract for Ongoing Network Expansion



    Industry's largest wireless contract helping support Verizon Wireless
    grow its successful portfolio of multimedia and data services

    ORLANDO, Fla., March 26 /CNW/ -- Verizon Wireless and Alcatel-Lucent
(Euronext Paris and NYSE:   ALU) today announced a three-year agreement worth an
expected US$6 billion for Alcatel-Lucent to supply a wide variety of network
equipment, software and services supporting Verizon Wireless' ongoing network
expansion and continuous improvements. With this agreement Alcatel-Lucent
continues to be Verizon Wireless' primary network infrastructure supplier and
will continue to help grow Verizon Wireless' already successful, existing
portfolio of multimedia and data services.
    The equipment, software and services from Alcatel-Lucent will make it
possible for Verizon Wireless to further increase the coverage and capacity of
its award-winning, wide-area BroadbandAccess data network based on CDMA2000(R)
1xEV-DO Revision A (Rev. A) technology and introduce new A-IMS services
including Voice over IP (VoIP), push-to-x, mobile video telephony and more by
deploying various components of Alcatel-Lucent's IMS solution. The deployment
also will accommodate the Verizon Wireless approach to multi-vendor
interoperability of these systems. In addition, the agreement calls for
Alcatel-Lucent to enhance Verizon Wireless' existing CDMA2000 1X network.
    "With strong support from Alcatel-Lucent, we at Verizon Wireless provide
our customers with the highest quality and most advanced mobile network in the
U.S. The $6 billion investment we're announcing today is indicative of our
willingness to further separate us from our competitors in the marketplace,"
said Dick Lynch, chief technology officer and executive vice president of
Verizon Wireless. "We will deliver value over fully interoperable IP-services
that enhance the lifestyles of our customers -- by offering multimedia
services that combine voice, data, and video capabilities."
    "This agreement underscores Verizon Wireless' commitment to quality and
to further enhancing the industry-leading multimedia and data services that
its customers already enjoy," said Cindy Christy, president of
Alcatel-Lucent's North America business. "We are proud of the confidence
Verizon Wireless has in our abilities and our comprehensive and extensive
portfolio of products, solutions and services."
    Under the agreement, Alcatel-Lucent will provide infrastructure solutions
spanning its entire portfolio to transition Verizon Wireless to an all-IP
network. Verizon Wireless' CDMA2000 1xEV-DO Rev. A network will be expanded
and enabled to support services such as VoIP with Quality of Service (QoS)
through software upgrades. Selected IMS services will be enabled through the
addition of Alcatel-Lucent's IMS platforms with the A-IMS compliant
Application Manager and Services Data Manager functions.
    Existing Alcatel-Lucent-supplied packet switches will be upgraded to
support IP soft handoff and Transcoder Free Operation, and the Alcatel-Lucent
7750 Service Router will also provide IP routing and Ethernet aggregation.
    Verizon Wireless will also use a wide range of products from Alcatel-
Lucent's optical and wireless transmission products, including MDR 8000
digital microwave radios. The Alcatel-Lucent optical networking products will
include the optical cross-connects LambdaUnite and 1671 Service Connect (SC),
and the Metropolis DMX product family, which will provide an end-to-end
solution for bandwidth management and mobility traffic backhaul.
    Alcatel-Lucent is also providing comprehensive end-to-end network support
services, ranging from network integration to installation, repair and
maintenance services.
    CDMA2000 is a registered trademark of the Telecommunications Industry
Association.

    About Verizon Wireless

    Verizon Wireless operates the nation's most reliable wireless voice and
data network, serving more than 59 million customers. The largest US wireless
company and largest wireless data provider, based on revenues, Verizon
Wireless is headquartered in Basking Ridge, N.J., with 65,000 employees
nationwide. The company is a joint venture of Verizon Communications (NYSE:  
VZ) and Vodafone (NYSE and LSE: VOD). Find more information on the Web at
http://www.verizonwireless.com. To preview and request broadcast-quality video
footage and high-resolution stills of Verizon Wireless operations, log on to
the Verizon Wireless Multimedia Library at
http://www.verizonwireless.com/multimedia.

    About Alcatel-Lucent

    Alcatel-Lucent (Euronext Paris and NYSE:   ALU) provides solutions that
enable service providers, enterprises and governments worldwide, to deliver
voice, data and video communication services to end-users. As a leader in
fixed, mobile and converged broadband networking, IP technologies,
applications, and services, Alcatel-Lucent offers the end-to-end solutions
that enable compelling communications services for people at home, at work and
on the move. With operations in more than 130 countries, Alcatel-Lucent is a
local partner with global reach. The company has the most experienced global
services team in the industry, and one of the largest research, technology and
innovation organizations in the telecommunications industry. Alcatel-Lucent
achieved adjusted proforma revenues of Euro 18.3 billion in 2006 and is
incorporated in France, with executive offices located in Paris. [All figures
exclude impact of activities to be transferred to Thales]. For more
information, visit Alcatel-Lucent on the Internet:
http://www.alcatel-lucent.com




For further information:

For further information: Jeffrey Nelson of Verizon Wireless, mobile: 
+1-917-968-9175, Jeffrey.Nelson@VerizonWireless.com; Denise Panyik-Dale, 
mobile: +1-973-943-0832, office: +1-908-582-4897, 
dpanyikdale@alcatel-lucent.com, Regine Coqueran, + 33 (0)1 40 76 49 24, 
regine.coqueran@alcatel-lucent.com, or Mark Burnworth, + 33 (0)1 40 76 50 84, 
mark.burnworth@alcatel-lucent.com, all of Alcatel-Lucent (Press); Pascal 
Bantegnie, +33 (0)1 40 76 52 20, pascal.bantegnie@alcatel-lucent.com, Maria 
Alcon, +33 (0)1 40 76 15 17, maria.alcon@alcatel-lucent.com, or John DeBono, 
+1-908-582-7793, debono@alcatel-lucent.com, all of Alcatel-Lucent (Investor 
Relations) Web Site: http://www.alcatel-lucent.com                 
http://www.verizonwireless.com/multimedia

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