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Zain selects Alcatel-Lucent for first small cells trial in Kingdom of Saudi Arabia

Paris, 1 February, 2011

Augmenting the mobile service experience of residential and business subscribers

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has been selected by Zain KSA for the first small cells trial in Saudi Arabia. Through this project, the mobile operator can experience first-hand how small cells effectively address its three main challenges :

fill mobile coverage holes, increase the network’s capacity to deal with mounting mobile data traffic and create new, value-added services in a rapid, cost-effective way.

“Zain is the first mobile operator in the Kingdom of Saudi Arabia to trial Femto-based small cells, which clearly positions us as an innovator in the mobile broadband space,” said Dr, Saad Al Barrak CEO and Managing Director of Zain KSA, Zain. “Partnering with Alcatel-Lucent, we want to assess how small cells can help us provide 5-bar mobile coverage to our residential and business customers – even in circumstances where this has traditionally been a challenge, such as in in-building and rural environments.”

Zain has been looking for ways to increase the coverage of its network without having to invest in expensive macro site deployments. Additionally, next to covering white zones, Zain wants to continuously improve its customers’ quality of experience - offering them the best-on-the-market mobile data plans with the highest availability and fastest access speeds, as well as the latest and coolest services.

“As part of this project, we are providing Zain with our proven small cells product portfolio which is being commercially deployed around the world,” said Adolfo Hernandez, president of Alcatel-Lucent’s activities in EMEA. “Alcatel-Lucent’s small cells are plug-and-play and enable the creation and delivery of a new wide range of value-added services through the use of application programming interfaces (APIs) - such as location, presence and security. Together with Zain, we look forward to bringing the mobile service experience in the Kingdom of Saudi Arabia to the next level, smoothly complementing Zain’s existing 3G macro deployments with small cells technology to address the growing demand for crystal-clear wireless voice and high-speed mobile data applications.”

Alcatel-Lucent is trialing with Zain its end-to-end Femto-based 9360 Small Cells portfolio, including the 9361 Home Cell, the 9362 Enterprise Cell, the 9366 Small Cell Gateway, and its best-in-class network management solution which combines the strengths of Alcatel-Lucent’s Wireless Management System, Wireless Provisioning System and the Femto Device Manager from its Motive Product Division. Alcatel-Lucent is providing a full range of comprehensive professional services including consulting and design, installation and software integration.

Fully in line with Alcatel-Lucent’s recent lightRadio™ announcement, the company sees small cells as a fundamental building block of converged, IP, more flexible and smarter networks. Alcatel-Lucent’s portfolio of Femto-based small cells leverages numerous Bell Labs innovations such as self-organizing networks (SON). SON empowers small cells to automatically configure at power up; it also enables them to periodically monitor, update and optimize their neighbor relation lists and handover parameters – thus reducing handover failures by up to 80%. Using SON technology, Alcatel-Lucent’s small cells have the capability to continuously adjust transmit power to the surrounding environment - to deliver the best possible coverage. Bell Labs studies have found that its SON feature translates to a 20 percent CAPEX savings and 50 percent OPEX savings.

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