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3G Network Contract

12th June 2003

Alcatel announced the signature of a contract with Wave Telecom, a wholly owned subsidiary of Jersey Telecom Group Ltd, to supply a GSM/GPRS and 3G/UMTS mobile network in the island of Guernsey, one of the Channel Islands.

Inset is Tim Ringsdore, Managing Director of Wave Telecom who is quoted below.

Following the successful rollout by Alcatel of a GSM/GPRS mobile network and services platform in Jersey, Jersey Telecom Group has now selected Alcatel technology for its first 3G/UMTS network. Wave Telecom will launch 3G/UMTS services in Guernsey by April 2004 while GSM/GPRS services will be available in November 2003.

Launched in December 2002, Wave Telecom is the only mobile operator to apply for and receive a 3G licence from Guernsey's Office of Utility Regulation. Wave Telecom's licence also covers the provision of GSM/GPRS and 3G/UMTS services for the surrounding Channel Islands of Alderney and Sark.

Under the terms of this contract, Alcatel will supply and install a complete and integrated set of GSM/GPRS and UMTS features and network configurations thanks to its field-proven Evolium? multi-standard base stations. The Alcatel's Evolium? solution features the GSM/GPRS and the UTRAN (UMTS Terrestrial Radio Access Network) radio systems, the mobile circuit and packet switch core network systems, as well as the Radio Network Controllers (RNC) and a Home Location Register (HLR).

Furthermore, Alcatel will implement its world leading LMDS solution to provide broadband wireless transport of mobile data and voice traffic, instead of expensive leased lines within Guernsey with mircrowave being used as transport technology between the islands of Jersey and Guernsey. Alcatel's LMDS is a flexible, fast and cost-effective mobile backhaul solution.

The new network will enable Wave Telecom and its parent company to optimise their CAPEX and decrease their OPEX, giving them in particular the opportunity of sharing the access to the Open Service Platforms already installed by Alcatel within the Jersey Telecom network. They will be able to offer their customers access to the best in class voice and multi-media services at the lowest price.

"Third generation technology adds a totally new dimension to mobile phone services by enabling all forms of communication to be accessible on a mobile," said Tim Ringsdore, Managing Director of Wave Telecom. "We are delighted to be able to invest in this new technology and offer real choice and innovation to the people of Guernsey. It is Wave's intention to build a first class mobile network. Alcatel's proven record with Jersey Telecom made it the logical partner for this historic project."

Charles Matthews, CEO, Alcatel UK said: "We are proud to have helped Wave Telecom realise its vision of a 2G, 2.5G and 3G network. The fact the Jersey Telecom Group wants to extend its relationship with Alcatel underlines the quality of our technology and the expertise of our employees. I am confident that the solution provided to Wave Telecom will give it the competitive edge it needs to be successful in the Guernsey market."

The Evolium? multi-standard platform integrates all technologies, from GSM/GPRS to EDGE and UMTS and allows all solutions in one for a smooth upgrade. Alcatel's approach to the introduction of UMTS in existing GSM networks focuses on protecting the operator's investment in general, and on Radio Access Network (RAN) system, in particular. Alcatel's multi-standard platforms and openness evolutionary solutions provide more than 50 operators worldwide with a maximum flexibility for 3G/UMTS rollout.

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