Mobile Broadband Highlights from Alcatel-Lucent Q3′2007 Financial Statement

Alcatel-Lucent today issued the results of their Q3′2007 report. For the third quarter 2007, revenue for the wireless business segment was Euro 1,276 million compared to Euro 1,674 million in the year-ago quarter, a 20% decrease at a constant Euro/USD exchange rate, or a 24% decrease at current rate.

Key highlights from their wireless carrier operations included:

- The wireless revenue decline was largely due to a comparison with very strong CDMA results in North America in the year-ago quarter, when significant initial revenues were booked for the deployment of CDMA2000 1x-EV-DO Rev A by major operators following the commercial availability of the enabling software. Sequentially, CDMA revenue slightly grew as CDMA gained outside North America, primarily in India, and Rev A deployments continued in North America and globally.

- Revenue in GSM declined from the year-ago quarter but continued to gain traction with its second consecutive strong sequential increase, notably with new product offerings (Twin TRX and ATCA BSC). In GSM/EDGE, Alcatel-Lucent announced new deployments or expansions with key customers in high growth economies including China Mobile, Uganda’s Hits Telecom and Uganda Telecom, Mongolia’s Mobicom and Egypt’s Mobinil.

- The 3G business announced significant contracts in all areas of the portfolio, including:

- A W-CDMA/HSPA win with Uganda Telecom, an HSUPA deployment with mobikom Austria, and a trial of the company’s Base Station Router (BSR) Femto for in-building applications with Japan’s Softbank Mobile.

- CDMA/EV-DO Rev. A contracts with Cricket Communications and Ntelos in the U.S., Skylink in Russia and UMC in Ukraine. Additionally, Cellular South recently announced that it invested in upgrades to its CDMA2000 network, preparing them for RevA roll-outs.

- A TD-SCDMA expansion with China Netcom in Qingdao, in cooperation with Alcatel-Lucent’s flagship company in China, Alcatel Shanghai Bell and its partner Datang Mobile.

- The company announced a series of new commercial WiMAX contract in Q3 with customers including Pakistan’s Mobilink (a subsidiary of Orascom), Germany’s VSE NET, Taiwan’s Far EasTone, Russia’s Synterra and Brazil Telecom. The company also announced a new trial with France’s Bollore. Since the beginning of 2007, Alcatel-Lucent signed more than 70 pilots and deployments across the world and 15 commercial contracts signed since the beginning of 2007. ONEMAX, our customer in the Dominican Republic, opened commercial service last week on its WiMAX network. This is the first WiMAX network commercially launched in the 3.5 GHz band - a world premiere.