Europe : Alcatel announced it signed an agreement in Italy with Pirelli to integrate the innovative optoelectronic module developed by Pirelli Labs and Telecom Italia Lab in its Evolium™ multi-standard remote radio units solution. This solution will reduce the deployment costs of 3G networks while taking into account the electromagnetic environment.

Evolving from a centralized Base Station platform architecture to the concept of multiple distributed radio access points all connected to one common central unit, the Alcatel Evolium™ multi-standard radio solution will integrate the optoelectronic module developed by Pirelli labs. It will allow a smooth physical split between the central unit and multiple remote radio access heads by re-using existing optical fiber transmission.

As a natural precursor of such initiatives as OBSAI* and CPRI**, the Alcatel Evolium™ multi-standard base station architecture already integrates today a digital interface between the Processing part and the Radio part. This agreement is part of the Alcatel co-operation initiated early 2003 with Pirelli, aiming at the re-use of existing optical infrastructure in Italy for UMTS deployment.

Integrating the "Radio over Fiber" solution of Pirelli will provide Alcatel with a significant competitive advantage when compared with other available solutions in the marketplace, allowing increased cost efficiency and easier combination of multiple access technologies in mobile networks. In addition the Alcatel Evolium™ solution will make site acquisition easier, allowing to re-use existing 2G sites for 3G, while simplifying the operation and maintenance of hybrid networks.

"This solution was developed thanks to intuitions and skill of our Labs: it's a worldwide innovation and it represents first commercial product originating from the laboratories," said Mr. Mauro Sacchetto, Chief Executive Officer of Pirelli Telecom Systems. "This new optoelectronic module, developed in strict cooperation with Alcatel, will enable mobile operators using Evolium™ solution to benefit from more efficient equipment, that will reduce their deployment costs and help them take into account the electromagnetic environment of the stations."

Samy Gattegno, President and Chief Executive Officer of Alcatel in Italy adds "This is a solution that will allow Alcatel to help mobile operators to more flexibly expand their 3G networks. The solution we developed together with Pirelli provides operators with more adaptable ways to take into account the base stations environment when deploying their networks. It also paves the way for future mobile networks combining multiple access technologies."

OVUM and the main mobile operators estimated the market of UMTS access networks in 500 million euros in the next three years, and some of the main international mobile operators have been interested by this new solution, which will be available on the market in 2004.

*Open Base Station Architecture Initiative
**Common Public Radio Interface
About Alcatel
Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world. Leveraging its long-term leadership in telecommunications network equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of EURO 16.5 billion in 2002, Alcatel operates in more than 130 countries.

About Pirelli
Pirelli is a global producer of Tyres, Energy and Telecommunication Cables and Systems. With more than 34,000 employees, 77 production sites, and total sales of 6.311 billion Euros at 31st December 2002, Pirelli is one of the world's leading companies. It focuses its R&D, production resources and competencies on leading-edge technologies, as demonstrated by the advanced Pirelli Labs in the photonics and new materials fields and by MIRS - Modular Integrated Robotized System for tyres production.