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Austrian Network Operator ONE Awards Alcatel 472 Million Euro Managed Operation and Maintenance Services Contract

Posted on: Wednesday, 12 November 2003, 06:00 CST

VIENNA, Austria, Nov. 12 /PRNewswire-FirstCall/ -- Alcatel has been awarded a seven-year outsourcing deal by ONE, the Austrian mobile communications operator, for the management, operation and maintenance of ONE's communications network. This contract is worth Euro 472 million and will take effect as of Jan. 1, 2004. By outsourcing its network activities, ONE intends to shift its focus from managing infrastructure to the development of new customer-oriented services and optimize its processes to gain in efficiency.

Under the contract, Alcatel will mainly provide the operation and maintenance of the entire multi-vendor mobile network of 1.4 million subscribers and will manage the project planning and physical rollout of ONE's GSM mobile network extensions and new UMTS network infrastructure, independently of the origin of the equipment. This contract also includes facility management for ONE's headquarters, regional offices and ONE shops.

The outsourcing agreement involves the transfer of approximately 200 operation and maintenance employees in Austria from ONE to Alcatel.

ONE's CEO Jorgen Bang-Jensen sees strategic advantages in the alliance with Alcatel. "New mobile technologies today support the launch of a wide range of added value services designed to meet our customers' expectations," he said. "To take full advantage of this potential, we have decided to concentrate on the development of customer-specific services and therefore will outsource network operations to Alcatel, our strategic network partner. Alcatel has proven its experience in this domain as well as its understanding of our business and the importance of our staff in our success."

"This contract demonstrates how Alcatel, by taking on the operations and maintenance of the network, can help operators focus their resources on what is really core for them: their customers," said Serge Tchuruk, chairman and CEO of Alcatel. "The role of Alcatel in such contracts changes from that of an equipment supplier to that of a strategic partner that is responsible for helping the operator to meet the market challenges."

In executing the deal, Alcatel will use the synergies it creates with other contracts at the network maintenance level, particularly in Austria where Alcatel already provides network rollout and maintenance services for other customers. At an operational level, Alcatel will be able to leverage the skills and experience gained from its recent contract with Telecom New Zealand.

This contract and its unique scale confirm Alcatel's position as a worldwide leader for outsourced operations and maintenance of multi-vendor networks.

About ONE

ONE is the only mobile telephony operator to offer GPRS and HSCSD (ONE High Speed) in Austria. Besides mobile telephony, ONE also offers the Internet product i-ONE and the fixed-line solution f-ONE. At the end of June 2003, ONE had about 1400 employees and more than 1.6 million customers (1.37 million mobile, 145,000 fixed line and 150,000 Internet customers). Turnover in 2002 amounted to Euro 619.7 million. ONE (ONE GmbH) is owned by the German E.ON (50.10 percent), the Norwegian Telenor (17.45 percent), Orange (17.45 percent) and the Danish TDC (15 percent).

About Alcatel

Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver contents to any type of user, anywhere in the world. Leveraging its long-term leadership in telecommunications networks equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of Euro 16.5 billion in 2002, Alcatel operates in more than 130 countries. For more information, http://www.alcatel.com/ .

About Alcatel's Integration and Services activities

Alcatel is a market leader in providing insourcing services for multivendor networks in multiple countries. With more than 20 contracts to date -- among them the network management deal awarded this year by Telecom New Zealand -- Alcatel is at the forefront of this growing market opportunity.

Alcatel

CONTACT: press, Aurelie Boutin, +33-0-1-40-76-11-79, or
Aurelie.boutin@alcatel.com , or Florence Pontieux, +33-0-1-40-76-12-02, or
Florence.pontieux@alcatel.com , or investor relations, Claire Pedini,
+33-0-1-40-76-13-93, or claire.pedini@alcatel.com , or Laurent Geoffroy,
+33-0-1-40-76-50-27, or Laurent.geoffroy@alcatel.com , or Pascal Bantegnie,
+33-0-1-40-76-52-20, or Pascal.bantegnie@alcatel.com , or Peter Campbell,
+1-972-519-4347, or Peter.campbell@alcatel.com , or Charlotte Laurent-
Ottomane, +1-703-668-3571, or charlotte.laurent-ottomane@alcatel.com , all of
Alcatel

Web site: http://www.alcatel.com/

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