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OVERVIEW




Because
the world is
Always on.
BECAUSE TRANSFORMING
                    COMMUNICATIONS…
 Alcatel-Lucent’s vision is to enrich people’s lives by transforming the way the world communicates.
 We provide 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 access, carrier and enterprise 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.




      WE’RE GLOBAL, WE’RE MULTICULTURAL; WE’RE EQUIPPED
      AND STRUCTURED TO BUILD AND MANAGE THE MOST COMPLEX
      NETWORKS. WE POSSESS R&D ASSETS THAT ARE AMONG
      THE BEST IN THE WORLD. IT’S UP TO US TO ENSURE INNOVATION
      CONTINUES TO TRANSFORM COMMUNICATIONS EXPERIENCE.
      Patricia Russo, Alcatel-Lucent CEO



                                                         ACTIVE IN
                                                         130 COUNTRIES



      €18.3 BILLION                               €2.7 BILLION
      REVENUES IN 2006                            R&D INVESTMENT



Key figures 2006                                  The broadband
                                                  leader
                                                  Alcatel-Lucent is the worldwide leader in deploying
                                                  fixed broadband (ADSL) networks. It is also the only
                                                  company whose portfolio encompasses all three mobile
                                                  broadband technologies: CDMA, UMTS/HSDPA
                                                  and TD-SCDMA—the proprietary 3G standard
                                                  in China—to serve any market around the globe.
IS MORE THAN OUR BUSINESS…

User-Centric                                                Competitive
experience                                                  transformation
User demands and expectations are constantly                To survive in today’s hyper-competitive marketplace
evolving—and have to be met. Consumers, especially          and prepare for tomorrow’s IP-based telecom networks
in mature markets, expect ubiquitous connectivity,          market, service providers must transform themselves
with voice and data always available, and increasingly      to deliver new personalized and blended services,
seamless transitions between fixed broadband and            increasing satisfaction and keeping value
mobile modes. Enterprises are ever-more dependent           in the network.
on—and ever-more strategic about using—
communications technologies; they must be, to               Transformation is taking three forms: network
compete. Governments are delivering greater numbers         transformation, service transformation, business
of services electronically every day.                       transformation.
Alcatel-Lucent’s user-centric broadband services are        Alcatel-Lucent enables a customized path to profitable
enabling carriers, entreprises and governments to turn      growth for service providers challenged by new
sophisticated communications solutions into an intuitive    entrants and complex market dynamics. These changes
experience for the user.                                    also accelerate business innovation, and enable
                                                            them to deliver profitable new services across a cost-
                                                            effective,intelligent, service-aware, converged network
                                                            and optimized business operation model.
Business-Critical
communication                                               Broadband
In today’s business environment, a company’s internal
                                                            for all
and external communications have become business-
critical. Enterprises have complex communications
requirements with many devices, users and locations         Access to voice and broadband services is essential
combined with many technologies, needs and                  for social and economic development. Yet billions
applications. Alcatel-Lucent calls upon its understanding   of people are currently underserved. Alcatel-Lucent
of carriers to deliver to businesses and governments        can help service providers in high-growth economies
end-to-end communications solutions that master             leapfrog to the latest technologies and business models
this complexity.                                            to transform their services, networks and business to
                                                            increase mobile and broadband penetration and thus
The company delivers business-critical communications
                                                            contribute to the achievement of universal access to
solutions for selected vertical industries where secure,
                                                            telecommunications.
always-on communications and technology requirements
are imperative.
To efficiently address enterprise communications
requirements, Alcatel-Lucent leverages cross-industry
knowledge, research and innovation, and broad partner
eco-systems.
… IT’S OUR RAISON D’ÊTRE
Every technological breakthrough begins with an
                                                             An innovation
idea, a possibility. At Alcatel-Lucent, ideas are always
percolating. We relentlessly pursue opportunities
                                                             powerhouse
to push out the boundaries of communication.
This is why the company invests around 15% of its
                                                             Alcatel-Lucent’s research community is playing a pivotal role
revenues every year in R&D activities—amounting
                                                             in developing today’s and tomorrow’s communications
to ?2.7 billion in 2006.
                                                             technologies through leading research in:
                                                             • Multimedia and mobile/fixed services and applications
Combining the world-renowned research organization
                                                             • New service delivery architectures and platforms
Bell Labs with Alcatel’s pioneering Research and
                                                             • Wireless and wireline broadband access
Innovation, Alcatel-Lucent today pursues groundbreaking
                                                             • Packet and optical networking
research by scientists and engineers at research centers
                                                             • Network security
around the world. Numerous technologies from our
                                                             • Enterprise networking and communication services
research teams enhance Alcatel-Lucent’s product and
solution offerings, enrich our applications and services,
improve network security, and provide key technological
breakthroughs in radio and optics.
Alcatel-Lucent invests in fundamental research
in fields that include mathematics, the physical sciences,
                                                             25,000 ACTIVE
nanotechnology, and computer sciences.
                                                             PATENTS WORLDWIDE
                                                             1,400
                                                             NEW PATENTS IN 2006
A responsible
company
Corporate Social Responsibility is a part of who we are
and how we do business every day. It is a pledge that
comes directly from our Statement of Business Principles
and it means that we act in a socially responsible way
as we interface with all of our stakeholders.




                                                                                                                             Design and production: W PRINTEL - Editing: Alcatel-Lucent Corporate Communications - Photos: © Alcatel-Lucent, all rights reserved, Fred Leveugle.
                                                             Diversity brings
When Alcatel-Lucent joined the United Nations Global

                                                             vitality
Compact, the company committed to embrace, support
and enact the 10 principles of business conduct
defined by the United Nations in terms of human
rights, labor standards and environmental practices.         Diversity of people and ideas is vital to acompany
                                                             the size and the scope of Alcatel-Lucent.
On a day-to-day basis, being a socially responsible
company means we conduct our activities with respect         Success in telecommunications demands the kind
to the highest standards of business ethics, work to         of thinking and innovation fostered by multicultural
reduce the environmental impact of our activities and        and multidisciplinary collaboration.
products, value our employees, encourage diversity
                                                             Alcatel-Lucent promotes diversity, inclusiveness
within our teams, and help promote the social and
                                                             and respect across the organization, and encourages
economic development of local communities where
                                                             employees to broaden their experience by taking
the company operates.
                                                             on different job functions and working in different
By promoting innovation in technologies to tailor            geographic areas. Our employee base represents
communication solutions to the local needs of people         104 nationalities.
in emerging countries, we are taking part in the
                                                             To bring more diversity into its teams, the company
development of a more inclusive information society.
                                                             has developed training courses to raise awareness
                                                             on this issue, has launched gender diversity programs
                                                             and has set up a specific program for the professional
                                                             integration of disabled people.




                                                             FOR MORE INFORMATION:
                                                             CORPORATE COMMUNICATIONS
                                                             54, rue La Boétie – 75008 Paris – France
                                                             www.alcatel-lucent.com
ALCATEL-LUCENT ACTIVITIES




           FIVE BUSINESS GROUPS
WIRELESS




           A world-leading supplier of wireless communications solutions across
           all wireless technologies.

           KEY FIGURES

           €5.82 billion revenues*
             No. 1 in 3G access(1)
             No. 1 in CDMA(2)
             No. 2 in mobility infrastructure(2)
             No. 2 in GSM/EDGE in fast-growing markets(1)

           ACTIVITIES
             Design and supply mobile communications infrastructure (telephony, Internet, video)
             for telecommunications operators and enterprises
             Supply multimedia applications
             Integrate end-to-end complex solutions

           KEY PRODUCT/ TECHNOLOGY AREAS
             Wireless networks (GSM/GPRS/EDGE/UMTS/HSPA/LTE, CDMA/CDMA2000/EV-DO
             EV-DO Revision A and Ultra Mobile Broadband)
             Seamless voice over Internet protocol (VoIP) core networks
             Radio transmission networks
             Multimedia user services (messaging, video, music)
             Applications for mobile operators (value-based billing)
             Wireless transmission networks (microwave and WiMAX)
SERVICES




           A leading network integrator with 20,000 network experts providing
           professional services that encompass the entire network life-cycle.

           KEY FIGURES

           €2.97 billion revenues*
           (plus €1 billion in engineering and deployment services)
             No. 2 in telecom infrastructure services(11)
             No. 2 in overall telecommunications software market(8)
             No. 2 in operation support systems/business support system(8)
             More than 20,000 network experts
             Ten Network Operations Centers and six IP Transformation Centers
             More than 90 Technical and Welcome Centers around the world

           ACTIVITIES
             Design and deliver innovative client-driven solutions that deliver value
             Provide a broad and comprehensive set of professional services that encompass the entire
             network life-cycle—Consult and Design, Integrate and Deploy, as well as Operate and Maintain
             Offer a full range of service partnership models—from operational support to partial or total
             outsourcing
             A trusted advisor, we understand network, business and service transformation challenges,
             enabling customers to achieve their goals faster


           SERVICES
             Applications integration
             IP transformation
             Network support and maintenance
             Managed network operations and carrier network outsourcing
             Enterprise and government
             Network integration
World leader in enabling customers to transform their networks to an


WIRELINE
              all-IP infrastructure, allowing them to enrich the end-user experience
              and create sustainable value.

              KEY FIGURES

              €5.7 billion revenues*
                No. 1 in broadband access(2)
                No. 1 in IPTV access systems(3)
                No. 1 in optical networking(4)
                No. 1 in multiservice wide area networks(2)
                No. 2 in the IP/MPLS edge product market – and the fastest growing
                player(5)
                No. 2 in the carrier Ethernet market(6)
                Leader in triple play infrastructure

              ACTIVITIES
                Provide IP network solutions that allow service providers, enterprises and governments
                worldwide to deliver voice, data and video communication services to end-users
                Integrate end-to-end complex solutions

              KEY PRODUCT/ TECHNOLOGY AREAS
                Broadband access networks over copper (DSL) and optical fiber (FTTH)
                Optical transmission networks (terrestrial and submarine)
                IP/MPLS, Ethernet and ATM data networks
                Triple-play service delivery architecture
                Mobile IP transformation
                Business-critical enterprise networks for selected vertical industries
                Managed networking services




              Leading supplier of communications solutions enabling the delivery
CONVERGENCE




              of innovative voice and multimedia services across all kinds of devices
              and networks.

              KEY FIGURES

              €2.09 billion revenues*
                A market leader in IP Multimedia Subsystem (IMS) deployments(7)
                Leader in triple play applications
                Leader in real-time payment solutions
                Leader in multimedia over mobile

              ACTIVITIES
                Design and deliver solutions to deliver converged networks and billable end-user services
                Enable the delivery of innovative services across all kinds of devices and networks (mobile,
                fixed, and enterprise)
                Integrate end-to-end complex solutions


              KEY PRODUCT/ TECHNOLOGY AREAS
                IPTV and multiplay
                IMS services
                Subscriber data management
                Charging and billing with converged payment
                IP/next-generation networking
ENTERPRISE
             World leader in the competitive transformation of enterprise and government
             customers by delivering secure, end-to-end business-critical communications
             solutions.

             KEY FIGURES

             €1.49 billion revenues*
              Leadership position**
                Corporate telephony, Europe/Middle East/Africa (EMEA) and
                Asia/Pacific (APAC)
                Contact center infrastructure, EMEA, APAC and North America
                Interactive voice response/voice portals worldwide
                Unified communications worldwide
              No. 1 in enterprise telephony, EMEA(9)
              No. 1 in IP address management software(10)
              More than 1,600 partners, including resellers, system integrators,
              hardware vendors and independent software vendors

             ACTIVITIES

               Deliver secure, end-to-end business-critical solutions for enterprises and governments
               Business-critical enterprise networks for selected vertical industries (transportation, utilities,
               healthcare, education, defense and public safety)

             KEY PRODUCT/ TECHNOLOGY AREAS

               Secure voice-data convergence solutions for enterprises, including IP networking,
               IP communications and mobility
               Multimedia contact centers for optimized customer interaction
               Enterprise and government security solutions




                         * based on 2006 adjusted pro-forma revenues   (1) according to internal estimates   (7) Current Analysis
                        ** in Gartner Group’s Magic Quadrants          (2) Dell’Oro                          (8) OSS Observer
                           for 2006                                    (3) Multimedia Research Group,        (9) for Q2 2006 [Canalys]
                                                                           Inc., Q4 ’06 to Q1 ’07            (10) IDC 2005
                                                                       (4) Ovum-RHK and Dell’Oro             (11) Technology Business
                                                                       (5) Ovum-RHK                               Research, Inc.
                                                                       (6) Synergy

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Alcatel Lucent Info

  • 2. BECAUSE TRANSFORMING COMMUNICATIONS… Alcatel-Lucent’s vision is to enrich people’s lives by transforming the way the world communicates. We provide 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 access, carrier and enterprise 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. WE’RE GLOBAL, WE’RE MULTICULTURAL; WE’RE EQUIPPED AND STRUCTURED TO BUILD AND MANAGE THE MOST COMPLEX NETWORKS. WE POSSESS R&D ASSETS THAT ARE AMONG THE BEST IN THE WORLD. IT’S UP TO US TO ENSURE INNOVATION CONTINUES TO TRANSFORM COMMUNICATIONS EXPERIENCE. Patricia Russo, Alcatel-Lucent CEO ACTIVE IN 130 COUNTRIES €18.3 BILLION €2.7 BILLION REVENUES IN 2006 R&D INVESTMENT Key figures 2006 The broadband leader Alcatel-Lucent is the worldwide leader in deploying fixed broadband (ADSL) networks. It is also the only company whose portfolio encompasses all three mobile broadband technologies: CDMA, UMTS/HSDPA and TD-SCDMA—the proprietary 3G standard in China—to serve any market around the globe.
  • 3. IS MORE THAN OUR BUSINESS… User-Centric Competitive experience transformation User demands and expectations are constantly To survive in today’s hyper-competitive marketplace evolving—and have to be met. Consumers, especially and prepare for tomorrow’s IP-based telecom networks in mature markets, expect ubiquitous connectivity, market, service providers must transform themselves with voice and data always available, and increasingly to deliver new personalized and blended services, seamless transitions between fixed broadband and increasing satisfaction and keeping value mobile modes. Enterprises are ever-more dependent in the network. on—and ever-more strategic about using— communications technologies; they must be, to Transformation is taking three forms: network compete. Governments are delivering greater numbers transformation, service transformation, business of services electronically every day. transformation. Alcatel-Lucent’s user-centric broadband services are Alcatel-Lucent enables a customized path to profitable enabling carriers, entreprises and governments to turn growth for service providers challenged by new sophisticated communications solutions into an intuitive entrants and complex market dynamics. These changes experience for the user. also accelerate business innovation, and enable them to deliver profitable new services across a cost- effective,intelligent, service-aware, converged network and optimized business operation model. Business-Critical communication Broadband In today’s business environment, a company’s internal for all and external communications have become business- critical. Enterprises have complex communications requirements with many devices, users and locations Access to voice and broadband services is essential combined with many technologies, needs and for social and economic development. Yet billions applications. Alcatel-Lucent calls upon its understanding of people are currently underserved. Alcatel-Lucent of carriers to deliver to businesses and governments can help service providers in high-growth economies end-to-end communications solutions that master leapfrog to the latest technologies and business models this complexity. to transform their services, networks and business to increase mobile and broadband penetration and thus The company delivers business-critical communications contribute to the achievement of universal access to solutions for selected vertical industries where secure, telecommunications. always-on communications and technology requirements are imperative. To efficiently address enterprise communications requirements, Alcatel-Lucent leverages cross-industry knowledge, research and innovation, and broad partner eco-systems.
  • 4. … IT’S OUR RAISON D’ÊTRE Every technological breakthrough begins with an An innovation idea, a possibility. At Alcatel-Lucent, ideas are always percolating. We relentlessly pursue opportunities powerhouse to push out the boundaries of communication. This is why the company invests around 15% of its Alcatel-Lucent’s research community is playing a pivotal role revenues every year in R&D activities—amounting in developing today’s and tomorrow’s communications to ?2.7 billion in 2006. technologies through leading research in: • Multimedia and mobile/fixed services and applications Combining the world-renowned research organization • New service delivery architectures and platforms Bell Labs with Alcatel’s pioneering Research and • Wireless and wireline broadband access Innovation, Alcatel-Lucent today pursues groundbreaking • Packet and optical networking research by scientists and engineers at research centers • Network security around the world. Numerous technologies from our • Enterprise networking and communication services research teams enhance Alcatel-Lucent’s product and solution offerings, enrich our applications and services, improve network security, and provide key technological breakthroughs in radio and optics. Alcatel-Lucent invests in fundamental research in fields that include mathematics, the physical sciences, 25,000 ACTIVE nanotechnology, and computer sciences. PATENTS WORLDWIDE 1,400 NEW PATENTS IN 2006 A responsible company Corporate Social Responsibility is a part of who we are and how we do business every day. It is a pledge that comes directly from our Statement of Business Principles and it means that we act in a socially responsible way as we interface with all of our stakeholders. Design and production: W PRINTEL - Editing: Alcatel-Lucent Corporate Communications - Photos: © Alcatel-Lucent, all rights reserved, Fred Leveugle. Diversity brings When Alcatel-Lucent joined the United Nations Global vitality Compact, the company committed to embrace, support and enact the 10 principles of business conduct defined by the United Nations in terms of human rights, labor standards and environmental practices. Diversity of people and ideas is vital to acompany the size and the scope of Alcatel-Lucent. On a day-to-day basis, being a socially responsible company means we conduct our activities with respect Success in telecommunications demands the kind to the highest standards of business ethics, work to of thinking and innovation fostered by multicultural reduce the environmental impact of our activities and and multidisciplinary collaboration. products, value our employees, encourage diversity Alcatel-Lucent promotes diversity, inclusiveness within our teams, and help promote the social and and respect across the organization, and encourages economic development of local communities where employees to broaden their experience by taking the company operates. on different job functions and working in different By promoting innovation in technologies to tailor geographic areas. Our employee base represents communication solutions to the local needs of people 104 nationalities. in emerging countries, we are taking part in the To bring more diversity into its teams, the company development of a more inclusive information society. has developed training courses to raise awareness on this issue, has launched gender diversity programs and has set up a specific program for the professional integration of disabled people. FOR MORE INFORMATION: CORPORATE COMMUNICATIONS 54, rue La Boétie – 75008 Paris – France www.alcatel-lucent.com
  • 5. ALCATEL-LUCENT ACTIVITIES FIVE BUSINESS GROUPS WIRELESS A world-leading supplier of wireless communications solutions across all wireless technologies. KEY FIGURES €5.82 billion revenues* No. 1 in 3G access(1) No. 1 in CDMA(2) No. 2 in mobility infrastructure(2) No. 2 in GSM/EDGE in fast-growing markets(1) ACTIVITIES Design and supply mobile communications infrastructure (telephony, Internet, video) for telecommunications operators and enterprises Supply multimedia applications Integrate end-to-end complex solutions KEY PRODUCT/ TECHNOLOGY AREAS Wireless networks (GSM/GPRS/EDGE/UMTS/HSPA/LTE, CDMA/CDMA2000/EV-DO EV-DO Revision A and Ultra Mobile Broadband) Seamless voice over Internet protocol (VoIP) core networks Radio transmission networks Multimedia user services (messaging, video, music) Applications for mobile operators (value-based billing) Wireless transmission networks (microwave and WiMAX)
  • 6. SERVICES A leading network integrator with 20,000 network experts providing professional services that encompass the entire network life-cycle. KEY FIGURES €2.97 billion revenues* (plus €1 billion in engineering and deployment services) No. 2 in telecom infrastructure services(11) No. 2 in overall telecommunications software market(8) No. 2 in operation support systems/business support system(8) More than 20,000 network experts Ten Network Operations Centers and six IP Transformation Centers More than 90 Technical and Welcome Centers around the world ACTIVITIES Design and deliver innovative client-driven solutions that deliver value Provide a broad and comprehensive set of professional services that encompass the entire network life-cycle—Consult and Design, Integrate and Deploy, as well as Operate and Maintain Offer a full range of service partnership models—from operational support to partial or total outsourcing A trusted advisor, we understand network, business and service transformation challenges, enabling customers to achieve their goals faster SERVICES Applications integration IP transformation Network support and maintenance Managed network operations and carrier network outsourcing Enterprise and government Network integration
  • 7. World leader in enabling customers to transform their networks to an WIRELINE all-IP infrastructure, allowing them to enrich the end-user experience and create sustainable value. KEY FIGURES €5.7 billion revenues* No. 1 in broadband access(2) No. 1 in IPTV access systems(3) No. 1 in optical networking(4) No. 1 in multiservice wide area networks(2) No. 2 in the IP/MPLS edge product market – and the fastest growing player(5) No. 2 in the carrier Ethernet market(6) Leader in triple play infrastructure ACTIVITIES Provide IP network solutions that allow service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end-users Integrate end-to-end complex solutions KEY PRODUCT/ TECHNOLOGY AREAS Broadband access networks over copper (DSL) and optical fiber (FTTH) Optical transmission networks (terrestrial and submarine) IP/MPLS, Ethernet and ATM data networks Triple-play service delivery architecture Mobile IP transformation Business-critical enterprise networks for selected vertical industries Managed networking services Leading supplier of communications solutions enabling the delivery CONVERGENCE of innovative voice and multimedia services across all kinds of devices and networks. KEY FIGURES €2.09 billion revenues* A market leader in IP Multimedia Subsystem (IMS) deployments(7) Leader in triple play applications Leader in real-time payment solutions Leader in multimedia over mobile ACTIVITIES Design and deliver solutions to deliver converged networks and billable end-user services Enable the delivery of innovative services across all kinds of devices and networks (mobile, fixed, and enterprise) Integrate end-to-end complex solutions KEY PRODUCT/ TECHNOLOGY AREAS IPTV and multiplay IMS services Subscriber data management Charging and billing with converged payment IP/next-generation networking
  • 8. ENTERPRISE World leader in the competitive transformation of enterprise and government customers by delivering secure, end-to-end business-critical communications solutions. KEY FIGURES €1.49 billion revenues* Leadership position** Corporate telephony, Europe/Middle East/Africa (EMEA) and Asia/Pacific (APAC) Contact center infrastructure, EMEA, APAC and North America Interactive voice response/voice portals worldwide Unified communications worldwide No. 1 in enterprise telephony, EMEA(9) No. 1 in IP address management software(10) More than 1,600 partners, including resellers, system integrators, hardware vendors and independent software vendors ACTIVITIES Deliver secure, end-to-end business-critical solutions for enterprises and governments Business-critical enterprise networks for selected vertical industries (transportation, utilities, healthcare, education, defense and public safety) KEY PRODUCT/ TECHNOLOGY AREAS Secure voice-data convergence solutions for enterprises, including IP networking, IP communications and mobility Multimedia contact centers for optimized customer interaction Enterprise and government security solutions * based on 2006 adjusted pro-forma revenues (1) according to internal estimates (7) Current Analysis ** in Gartner Group’s Magic Quadrants (2) Dell’Oro (8) OSS Observer for 2006 (3) Multimedia Research Group, (9) for Q2 2006 [Canalys] Inc., Q4 ’06 to Q1 ’07 (10) IDC 2005 (4) Ovum-RHK and Dell’Oro (11) Technology Business (5) Ovum-RHK Research, Inc. (6) Synergy