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3G Trial for China Netcom

6th December, 2004

Europe : Alcatel announced that it has been selected by China Netcom Group, one of China's incumbent operators, to deploy a 3G field trial network in Beijing. This agreement strengthens Alcatel's position in 3G in China, having already successfully deployed a similar 3G trial network with China Telecom earlier in the year. This contract was won through Alcatel Shanghai Bell, Alcatel's flagship Chinese company.

Alcatel will provide China Netcom with Alcatel's end-to-end field-proven Evolium™ UMTS solution based on the successful 3G products from Evolium SAS, Alcatel's joint venture with Fujitsu. This solution includes the state- of-the-art UMTS Multi-standard Base Stations (Node B), a Radio Network Controller (RNC) and the core network elements.

"This trial with China Netcom is a significant step for Alcatel in China because it puts us in good position for 3G with both of China's two key potential 3G operators," said Gerard Dega ( inset above ) , President of Alcatel Shanghai Bell. "As a Chinese company with international standing, we will leverage Alcatel's global experience of broadband user-centric solutions to ensure fast roll out of 3G networks in China."

Upon completion of such a 3G pilot network, China Netcom will be able to test innovative high-quality voice, data and multi-media mobile services in true-to-life conditions in the capital city.

Alcatel Shanghai Bell has a close relationship with China Netcom, having provided a full range of broadband access and optical solutions for fixed telecom services. China Netcom's end-users, corporate and residential alike, are already able to enjoy a new broadband lifestyle at home and in the workplace. In the near future they will also be able to do so on the move.

About China Netcom

A major state-owned enterprise, China Netcom Corporation Ltd. was co- established by the local telecom companies in 10 provinces, autonomous regions or municipalities directly under the central government, including Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Henan, Shandong, and China Netcom (Holding) Co., Ltd. Other corporations include South-eastern Communications Corp., China Network Communications (holding) Co., Ltd., Jitong Communications Limited Liability Company and other holding and sharing holding companies.

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