PARIS, October 23 /PRNewswire/ --

- 1830 Photonic Service Switch Enables Service Providers to
Respond to End-Users' Demands With Unprecedented Flexibility and Efficiency

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced
the worldwide commercial availability of its innovative metro wavelength
division multiplexing (WDM) platform paving the way for optical network
transformation. Named 1830 Photonic Service Switch (PSS),
( http://www1.alcatel-lucent.com/products/productsummary.jsp?productNumber=tcm%3A228-1509781635
) this breakthrough product meets service providers' new
requirements for controlled investment in next generation photonic
infrastructures by leveraging its Zero Touch Photonics value proposition and
unique technical advantages. Zero Touch Photonics eliminates the need for
frequent on-site interventions and provides a WDM network that is more
flexible to design and install, easier to operate, manage and monitor, where
wavelength services can be deployed faster and reconfigured according to more
dynamic traffic demands.

"For service providers, controlling capital budget, network
performance and operating expenses are just as important as building their
revenue stream," said Romano Valussi, President of Alcatel-Lucent's Optics
activities. "Based on Zero Touch Photonics, the Alcatel-Lucent 1830 PSS
accelerates time to service, simplifies operations, and improves performance
for better total cost of ownership."

"With its unique Zero Touch Photonics value proposition,
Alcatel-Lucent continues to lead innovation in WDM, the optical networking
segment expected to grow the most, to meet customers' demands for OPEX and
CAPEX reductions," said Eve Griliches, Program Director, IDC. "In the
Alcatel-Lucent 1830 PSS, the software intelligence and optimized photonic
architecture are elegantly combined to deliver ease of use."

Meeting customer demand

Worldwide demand for bandwidth continues to grow, fueled by new IP-based
services and multimedia applications. Service providers are increasingly
focusing on WDM technology, which provides the lowest cost per transmitted
bit, as a strategic infrastructure asset to support higher speed traffic
demands to end users and enable the growth in the Internet, in particular in
the metro part of their networks. As WDM has evolved, some limitations - such
as manual involvement with planning and provisioning to adapt to dynamic
traffic demands - prevented services providers from offering a competitive
time-to-market service. The WDM system provided higher bandwidth but the
hidden costs negatively affected most business cases making it difficult to
offer competitively priced, on-demand, content-focused services in a timely
manner.

Coupling technology with customer needs to create end-user value

With the new 1830 PSS, Alcatel-Lucent positions itself to
partner with services providers to develop new sustainable business models,
where bandwidth growth is achieved while optimizing their total cost of
ownership, including energy and space savings. The result will be
next-generation photonic networks that can mimic the flexibility, automation
and fast time-to-service capabilities of digital-based transport networks
while ensuring the bandwidth efficiency of pure photonic networks.

According to the business case developed by Alcatel-Lucent
Bell Labs, a network built with the new concept of the 1830 PSS can expect to
see a more positive return than one built with a fixed optical add-drop
multiplexer. A baseline case of expected traffic growth yields a 94%
improvement in net present value (NPV) of investment. Scenarios built using
more optimistic and pessimistic traffic growth levels delivered similar
results.

Leveraging its worldwide leadership in the WDM segment (Source: industry
analyst firms), Alcatel-Lucent continues innovating with its unique Zero
Touch Photonics value proposition. The Alcatel-Lucent 1830 PSS to allow
service providers to deliver any content to their end-users with the best
value while facing higher bandwidth demands and declining service tariffs.

The new Alcatel-Lucent 1830 PSS metro WDM platform targets
worldwide accounts, including fixed and mobile service providers, incumbent
and alternative providers, cable operators and multiple service operators
(MSOs), industry sectors (such as power, transportation, oil and gas, and
media broadcasters), medium-large enterprises and public sectors (such as
government, municipalities, education and research).

About Alcatel-Lucent in Optics

The world leader in optical networking with a 24% market share
in 2007 (Source: Ovum RHK), Alcatel-Lucent is spearheading the transformation
to all-packet transport. Alcatel-Lucent integrates its experience, leading
portfolio and innovative vision into optical and microwave solutions that
support a broad range of blended service applications - such as triple play,
Carrier Ethernet connectivity and 3G mobile backhaul - exceeding customer
needs in the fixed, mobile, submarine and vertical markets.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides
solutions that enable service providers, enterprise and governments
worldwide, to deliver voice, data and video communication services to
end-users. As a leader in fixed, mobile and converged broadband networking,
IP technologies, applications and services, Alcatel-Lucent offers the
end-to-end solutions that enable compelling communications services for
people at home, at work and on the move. With operations in more than 130
countries, Alcatel-Lucent is a local partner with global reach. The company
has the most experienced global services team in the industry, and one of the
largest research, technology and innovation organizations in the
telecommunications industry. Alcatel-Lucent achieved revenues of Euro 17.8
billion in 2007 and is incorporated in France, with executive offices located
in Paris. For more information, visit Alcatel-Lucent on the Internet:
http://www.alcatel-lucent.com