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Shanghai Mobile Take GSM / GPRS Wireless

18th April 2003

Alcatel announced that it has been awarded a new contract by Shanghai Mobile Communications Company Limited (Shanghai Mobile), the Shanghai subsidiary of China Mobile, for a major expansion of its GSM/GPRS network. The contract was won through Alcatel Shanghai Bell, Alcatel's flagship Chinese Company and the leading Chinese telecom technology vendor.

Inset is the Alcatel Evolium EvoliumTM GSM Base Station Controller.

Under this contract, Alcatel will provide Shanghai Mobile with industry-leading Evolium solutions that will enable the operator to meet the enhanced requirements of GPRS data services. These include a Mobile Switching Center, Base Station Controllers, Transmission Controllers and Multi Base Station System (BSS) Fast Packet Servers.

When the project is completed in June, Shanghai Mobile's GSM network capacity will increase to approximately 10 million subscribers. It will also strengthen Alcatel Shanghai Bell's leading position in the mobile switching market in Shanghai.

Shanghai is the most developed city in China with a population of 17 million. It is one of the fastest-growing mobile phone markets in the world with more than nine million mobile phone users at the end of last year, compared to 170,000 in 1995.

Zheng Jie, General Manager of Shanghai Mobile, said, "We have established stable and strong co-operative relations with Alcatel Shanghai Bell to build high-quality networks that meet the demands of our fast-growing GSM subscribers. We rely on our privileged partnership with Alcatel to offer to our customers fast access to the Internet and high-speed data added value services."

"We are glad, that Shanghai Mobile underscores the relationship by choosing our Evolium solution to expand its network. This will protect their investment on the way to a future 3G network," said Marc Rouanne, Chief Operating officer of Alcatel's Mobile Communications Group. "The cooperation with Shanghai Mobile shows the strength of the Alcatel Shanghai Bell position in Chinese mobile market."

Alcatel is one of the front-runners in advanced mobile communication. Alcatel's EvoliumTM solutions, which are produced by Alcatel Shanghai Bell have already been installed in 15 provinces in China. Back to year 1999, Alcatel installed the first GPRS & WAP network in China. In 2002, Alcatel provided coverage for a Chinese province via its Alcatel's CDMA 2000 1X product and technology. In addition to Europe, Alcatel 3G/UMTS pilot networks are also up and running in several Asian countries, including
China.

About Shanghai Mobile Communications Company Limited Shanghai Mobile was founded on Aug.1st, 1999, following the independently run China Telecom reorganization project from the State Department of the People's Republic of China. In Oct. 2000, Shanghai Mobile registered successfully overseas to be the wholly owned subsidiary of China Mobile (Hong Kong). It runs the "global" digital mobile service, IP service, Internet access information services, technology development and services etc. in Shanghai.

Shanghai Mobile has 2361 employees, and around 1030 million value assets. It owns "global" digital dual-band mobile network with 9 million end users by the end of 2002. Its network deploys roaming in China and opens to 80 countries with 160 operation centers

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