Alcatel's New Fiber-to-the-User Solution Lights Way to Profitable Broadband Services

Source: Alcatel

Broadband access leader gives carriers fiber-optic option to offer voice, video and Internet with single connection, single bill

DALLAS, Jan. 28, 2002 - Alcatel (NYSE: ALA) has expanded its world-leading portfolio of broadband access technologies by introducing the Alcatel 7340 Fiber-to-the-User (FTTU) solution. Alcatel's 7340 solution delivers high quality voice, interactive video supporting hundreds of analog and digital channels, and Internet access at speeds up to 3000 times faster than a dial-up modem.

FTTU is well suited for service providers to deploy in new-build residential communities or overlay networks as a complement to Alcatel's world-leading digital subscriber line (DSL) and digital loop carrier equipment. The Alcatel 7340 FTTU solution offers the carrier yet another powerful opportunity to reclaim and retain customers with a triple play of voice, video and data from the same provider.

"Alcatel's experience as a leading broadband access provider gives it the edge in providing a fiber-to-the-user solution," said Jean-Christophe Deverines, senior analyst with Frost & Sullivan. "Alcatel can leverage that broadband access position with its strengths in optical transmission, ATM (Asynchronous Transfer Mode) and network management to provide a carrier-class alternative that equips service providers to compete directly with cable operators."

The virtually unlimited capacity of optical fiber makes the Alcatel 7340 solution ideal for infrastructure deployments in new-build environments. While DSL deployments can deliver multimedia services such as on-line gaming, MP-3 music downloads, video-on-demand and broadcast TV, Alcatel's FTTU solution can support these and even more bandwidth-intensive services, like High Definition TV (HDTV), as they emerge. For example, a household with Alcatel's 7340 FTTU solution can simultaneously use four active phone lines, surf the Internet at fiber optic speeds, and choose from hundreds of video channels, with all the services delivered through a single fiber optic cable and billed by a single provider.

"The window of opportunity for pushing fiber out to the last mile has opened," said Bettina Tratz-Ryan, senior analyst, Gartner-Dataquest. "The demand for broadband services is growing rapidly at the same time as the underlying fiber-based technologies have improved and deployment costs have decreased."

In addition, because the 7340 solution leverages the Alcatel 7300 Advanced Services Access Manager (ASAM) the world's most widely deployed broadband network access platform ? customers can realize full operational alignment across their DSL and FTTU deployments, resulting in significant savings in deployment costs and staff training.

"Alcatel offers service providers the right mix of powerful, fully-managed, carrier-grade solutions that, in turn, deliver the revenue-generating services that customers want, and will pay for," said Michel Rahier, president of Alcatel's Broadband Networking activities. "Our full range of broadband access solutions enables providers to offer compelling services that compete head-on with cable companies in the delivery of broadband entertainment and business services. Furthermore, the modular and scalable nature of Alcatel's broadband access portfolio also ensures the network is equipped to migrate cost-efficiently to new needs as they are identified."

The Alcatel 7340 ? which is ANSI-compliant (American National Standards Institute) in this initial version ? is based on the ITU-T BPON (Broadband Access Passive Optical Networking) standard. BPON uses a combination of optical wave division multiplexing and advanced packet protocols to provide an extremely robust, flexible and cost-effective access solution for residential and business services. The 7340 FTTU solution is fully compliant with the Full Service Access Network PON standard that has been developed by operators for use worldwide. Incorporating ATM and managed by Alcatel's world-leading network and service management portfolio, Alcatel's 7340 FTTU offers the robust quality of service capabilities necessary today to support time-sensitive service delivery.

Detailed information, including a network diagram and photos relating to the Alcatel 7340 FTTU solution, are available at www.alcatel.com/fttu

About Alcatel
Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With sales of Euro 27 billion in 2000 and 110,000 employees, Alcatel operates in more than 130 countries.