All rights reserved © 2006, Alcatel The Food Chain – Alcatel View Joelle GAUTHIER Vice President Research & Innovation.

All rights reserved © 2006, Alcatel

The Food Chain – Alcatel View

Joelle GAUTHIER Vice President Research & Innovation

All rights reserved © 2006, Alcatel

2

AlcatelWorldwide Telecommunication solution provider

#1 in Europe, Middle East,

Africa & India

Amongst top players in USA

Amongst 3 top Chinese players

in China

Sales at € 13.1 billion

58,000 employees active in 130 countries

41%

North America

AsiaPacific

WesternEurope

RoW30%

15%14%

in € billion

Mobile communications

4Private

communications

3.9

Fixed communications

5.2

All rights reserved © 2006, Alcatel

3

€ 1.5 Bn 2005 R&D Investment

10,000 patents granted and 8,000 patent applications worldwide

700 patents filed every year

300 experts in 100 standard bodies

FranceGermanyBelgium

Italy

CIS

Canada

USA China

India

Australia

Alcatel R&D : Innovative clusters, Customer proximity, Cost optimization

16,000+ R&D engineers

21 major development centers

500 researchers in 6 Research & Innovation Centers

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4

Key innovation and usage drivers today…

Triple PlayQuadruple

Play

Convergence

TelecomAccessToday

Far ReachingCoverage

RemoteCommunities

Lowincome

Highincome

Urban Suburban RuralDense Urban Remote

Next BillionsVoice & Internet users

TelecomAccessToday

Far ReachingCoverage

RemoteCommunities

Lowincome

Highincome

Urban Suburban RuralDense Urban Remote

Next BillionsVoice & Internet users

Next Billion users

All rights reserved © 2006, Alcatel

5

Alcatel in European Technology Platforms

Triple PlayQuadruple

PlayConvergence

Next Billion users

Interoperability

Standards

Interoperability

Standards

High CapacityNetworks

High CapacityNetworks

Open Service Delivery

Environment

Open Service Delivery

EnvironmentLeading

contribution

Board Membership

PHOTONICS 21PHOTONICS 21

Active contribution

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6

Alcatel: a key player in technology standards

Program fully integrated into quality plans andproduct development cycles

Thought leadership in:• BB Access and Services• Business grade IP services• Fixed-mobile solutions• NGN & Applications • Data and Optics blend• Mobile networking

Future Proofing

and Security

Multivendor Interoperabilit

y

User Acceptance

CAPEX/OPEX Reduction

New Revenue Streams

Fast Time to Market

300 Alcatel expertsin more than 100 Standards Bodies

Key positions in:ITU, 3GPP, ETSI, ATIS, DSLF, IETF, CCSA, OMA, BCDF

All rights reserved © 2006, Alcatel

7

Alcatel powerful portfolio

Access

Optics

IP

Mobile

Enterprise

Satellites

Rail signaling

ADSL

FTTXWiMAX

Terrestrial

Submarine

ETCS

Core NGN Applications

Edge service router

Ethernet aggregation

Observation, science civilian & military

telecoms

IP telephonyCall centers

World leader

At the forefront

World leader

#2

Leader

Among the top 2 or 3

in the world

World leaderAmong the top

2 or 3 in the world

All rights reserved © 2005, Alcatel

www.alcatel.com