Alcatel 3G TV and Video Agreement

28th June , 2004

Above shows the Alcatel 3G Reality Centre in China.

Europe : Alcatel and Shanghai Media Group (SMG), one of the most powerful Chinese media group, announced today that they have signed an agreement to integrate SMG's TV and video content with Alcatel's 3G networking solutions. The agreement was signed by Alcatel Shanghai Bell, Alcatel's flagship Chinese company.

This co-operative effort, the first of its kind in China between a media group and an end-to-end 3G solutions provider, will enable 3G mobile users to enjoy TV and other video-based content in China, and also internationally thanks to Alcatel's international network of 3G Reality Centres.

In addition, both parties agreed to integrate TV programs into Alcatel's DSL solution so as to drive broadband video streaming applications in China. This content deal also complements Alcatel's Open Media Suite portfolio, the industry leading middleware solution for delivery of rich media in a triple play service mix (voice, data, video).

Under the terms of the agreement, SMG will provide Alcatel with access to 11 channels of television programming including news, entertainment, and finance. SMG's TV channels include, in particular, 'Dragon TV', a popular newly formed TV channel serving the entire country and Chinese communities in Japan, Australia and other countries around the world. It also includes 'China Business Network (CBN)', offering business and financial news services (with English briefings broadcast via CNBC) to business people worldwide willing to catch up with the economic booming expansion of the Chinese market.

Alcatel will integrate these programs into its 3G networking solutions and enable users to access high definition live TV, video streaming, and video-on-demand programs at up to 384 kbps data transmission rates.

Li Rigging, President of Shanghai Media Group, said, "New technology is the driving force behind SMG's media and entertainment ventures. Partnering with Alcatel, a leading end-to-end 3G solutions provider, will help us promote our brand and contents through highly visible new distribution means like 3G mobile networks and devices." He added: "This agreement with Alcatel is an important step forward for us to expand the reach of our programs both locally and internationally".

"Enabling multimedia services delivery is the key to success in 3G," explained Gerard Dega, President of Alcatel Shanghai Bell. "Leveraging SMG's attractive news and entertainment TV and video content, our agreement with SMG is totally in line with Alcatel's strategy to develop more user-centric applications at home, on the pause and on the move, and to further strengthen Alcatel's leadership in mobile broadband, in particular in 3G," he explained.

The two companies are conducting a live demonstration of the new services in Alcatel's booth at China Elecomm, a telecommunications trade show that is being held in Shanghai from June 23 through June 26. A press conference, the two companies plan to host during the tradeshow, will be broadcast over the Alcatel Shanghai Bell 3G network to the company's booth. There, the conference can be viewed by visitors on LCDs and 3G mobile phones.

The Shanghai 3G Reality Centre open platform infrastructure is using the end-to-end Alcatel's field-proven Evolium™ UMTS solution based on the successful 3G products from Evolium SAS, Alcatel's joint venture with Fujitsu.

About Shanghai Media Group
Shanghai Media Group (SMG) is a multimedia conglomerate of radio, television, newspaper, and websites with total assets of 10.7 billion Yuan and over 5200 staff. It is comprised of 10 nationally renowned media organizations, 9 art troupes and 6 sports clubs, including Shanghai TV Women's Soccer Club, Oriental Basketball Club, Shanghai Cable TV Station Volleyball Club, and Shanghai Cable TV Station Men's Soccer Club.
SMG is striving to become an influential multimedia group in the Asia-Pacific region within 5 to 8 years, and aims to be one of the world's biggest Chinese language news groups, listed in the global top hundred media groups in the next five years.

About Alcatel
Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or to their employees. Alcatel leverages its leading position in fixed and mobile broadband networks, applications and services to bring value to its customers in the framework of a broadband world. With sales of EURO 12.5 billion in 2003, Alcatel operates in more than 130 countries.

About Alcatel Shanghai Bell
Alcatel Shanghai Bell is the first foreign-invested company limited by shares in the telecommunications sector in China, with Alcatel holding 50%+1 shares and Chinese shareholders holding the remainder. The multi-billion dollar telecom technology leader delivers end-to-end telecommunications solutions and high-quality services, covering the fixed, mobile networking, broadband access, intelligent optical networking, multimedia solutions and network applications. It also has a key international R&D center with full access to Alcatel's global technology pool, developing original technology for use in China and export to Alcatel's customers worldwide. With 6,500 employees, an advanced manufacturing center, and the most extensive sales and support network in China, it is the only company capable of meeting the global needs of Chinese customers.

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