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Ukraine’s Velton Telecom selects Alcatel-Lucent’s integration expertise to launch IPTV

Kiev, Ukraine, 25 February, 2010

First IPTV service in Ukraine leverages Alcatel-Lucent’s IP/MPLS and GPON solutions and Microsoft Mediaroom IPTV and multimedia software platform

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that LLC “VELTON.TELECOM” ltd. (Velton Telecom), a private Ukrainian operator providing fixed communication services across 14 cities of Central, Eastern and Western parts of Ukraine, is launching a field trial of innovative IPTV services to business and residential subscribers in Kharkov and Poltava. Alcatel-Lucent has been selected as the network integrator, utilizing the Microsoft Mediaroom platform and providing comprehensive professional services - including project management, consulting, network design, installation, software integration, commissioning and operations, offering our high level of expertise in this field. The commercial launch of the IPTV service is expected on the second half of 2010.

This IPTV field trial leverages the previously deployed IP/MPLS and GPON network that provides scalability, bandwidth on demand, as well as increased service level guarantees - enabling Velton Telecom to offer its subscribers a range of high-speed Internet access, IPTV, and VoIP services.

As part of its role as network integrator, Alcatel-Lucent is utilizing Microsoft Mediaroom as the software platform for Velton Telecom’s IPTV service. The Mediaroom platform enables Velton Telecom’s IPTV service to offer advanced features including an intuitive on-screen guide with keyword search to find current or future programs, instant channel change, video on demand (VoD), and the ability to record, pause, rewind and fast forward TV programs.

“The IP/MPLS and broadband access capabilities from Alcatel-Lucent’s solution enable us to stay in line with the service transformation processes that we see as vital in our market, as we now introduce IPTV services. Subscribers require simple and easy access to advanced, content-rich communication services and operators need flexible and reliable platforms to respond to this demand,” said Anatoly Protsyuk, chairman of Velton Telecom. “Alcatel-Lucent has field-proven solutions and the required network integration experience to successfully help us implement our ambitious business development plans.”

“We are ready to support Velton Telecom with our wealth of experience in network transformations,” commented Alexander Tikhonov, in charge of Alcatel-Lucent’s activities in the Commonwealth of Independent States. “As well as helping Velton Telecom to propose greater value to the end-users, we will be a partner that they can rely on to consolidate their market footprint.”

Alcatel-Lucent is a recognized leader in IPTV, occupying a top position in IPTV access and middleware solutions worldwide – according to the most recent MRG IPTV Market Leaders Report (October 2009). Alcatel-Lucent currently supports more than 5 million IPTV subscribers on behalf of its service provider customers, representing more than 18 percent of all IPTV subscribers worldwide.

The company is also involved in more than 55 triple play service delivery architecture (TPSDA) deployments, and over 60 IPTV transformation and integration projects. These transformation projects leverage Alcatel-Lucent’s extensive field deployment experience and investments in its global network of IP Transformation Centres (IPTCs) and dedicated IPTV Network Solution Integration & Testing lab (NSIT), reducing time to market and mitigating deployment risk.

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