Alcatel to implement the first 80 wavelength transatlantic optical system

Paris, January 12th, 2001 - Alcatel, world leader in intelligent optical networking, has been awarded by Cable & Wireless a turnkey contract worth several hundreds million US dollars, for a transatlantic network named Apollo. With a total capacity of 3.2Tbit/s on each transatlantic leg, this network will ensure the transportation of soaring data between the most demanding areas in the world, North America and Europe. In addition, a four year contract has been signed to ensure a fully customized marine maintenance of the system by Alcatel.

Based on state-of-the-art DWDM (dense wavelength division multiplexing) technology developed in Alcatel's research laboratories, the network will benefit from optimum capacity of 3.2Tbit/s. The network will consist of four fiber pairs equipped with 80 wavelength at 10Gbit/s. It will be the first time ever that so many channels will cross the Atlantic on a single fiber pair. The system has thus the highest capacity and lower unit cost of any transatlantic system and features a robust and flexible design which is adaptive to future traffic patterns.

The marine maintenance contract for Apollo includes a fully comprehensive and innovative after-sales service from Alcatel, including cable fault and marine repair services to be provided by two cable-vessels from Alcatel's top-level fleet. They will deliver a rapid, high quality repair service, thanks to highly qualified technicians and a specialized crew. All services will be managed easily and efficiently from a single point of contact. Alcatel launched this service last year and it has proved to be a resounding success with its clients.

"Cable & Wireless' role as the exclusive channel to market underlines the success of our division dedicated to the service of our carriers and service provider customers," said Mike McTighe, CEO Global Operations, Cable & Wireless. "The bandwidth that Apollo will provide reflects our phenomenal growth in IP and data traffic and our continued commitment to becoming the leading global supplier of IP services to business customers worldwide."

"This contract is not just a state-of-the-art DWDM transatlantic system in it's own right- its a complete turnkey contract including marine maintenance provided by dedicated Alcatel vessels. I am convinced that Apollo will provide an opportunity for both Cable & Wireless and Alcatel to further develop the excellent partnership already established during the installation of Gemini, another transatlantic network completed in 1998", said Jean Godeluck, President of Alcatel's submarine network activities.

Alcatel will completely manage this turnkey project, through from the initial surveys to installation, design and manufacturing. Apollo presents a dual cable configuration, relying on two links from the United States to United Kingdom and France respectively (see map). The system will span around 13,000km.

The network will be completed by summer 2002.

About Cable & Wireless
Cable & Wireless is a major global telecommunications business with revenue of over
£9 billion (US$14 billion) in the year to 31 March 2000 and customers in 70 countries. Its operations around the world offer a full range of telecommunications services. Cable & Wireless' focus for future growth is on IP (internet protocol) and data services and solutions for business customers. It is developing advanced IP networks and value-added services in the US, Europe and the Asia-Pacific region in support of this strategy. With the capability of its global IP infrastructure and its strength in key markets, Cable & Wireless holds a unique position in terms of global coverage and services to business customers. For more information about Cable & Wireless, go to www.cw.com.

About Alcatel

Alcatel is the only vendor to master all optical network elements, from optical components, optical fibers and DWDM systems to core routers and network intelligence, and from terrestrial to submarine solutions. Alcatel is also the only company to provide both terrestrial and marine services for the installation and maintenance of global, seamless optical networks.
According to RHK's 2000 study, Alcatel holds the number two position in global optical transport market with 20% market share, distancing itself from all other competitors. RHK also reported that Alcatel reaffirms its number one position in submarine networks with 41% worldwide market share. Moreover, Alcatel claims to be the world leader in total terrestrial and submarine DWDM systems, in digital cross-connects, which contain the enabling technology for operators to offer high bandwidth services, and in SDH networks.
Alcatel's optics business comprises terrestrial and submarine transmission systems, fiber optics and optical components. Alcatel has launched a new class of Alcatel stock which is intended to track the performance of Alcatel Optronics, the Company's optical component business.

Alcatel is the world leader in delivering full turnkey submarine network solutions and services. Alcatel leads this industry in terms of:
- having the highest sold capacity up to 8.4 Tbit/s for the long-haul systems and 3.6 Tbit/s for the short-haul ones, using the latest DWDM technology;
- having the largest manufacturing capacity at 85,000 km per year strategically located around the Globe;
- managing 11 dedicated purposed-designed vessels for a tight control on the delivery schedule, including marine maintenance.
Current contracts, worth US$ 5.8+ billion, include the most advanced undersea networks in the world today: 360americas and FLAG Atlantic-1 systems in the Atlantic, the 360pacific, FLAG Pacifc-1, Japan-US and Southern Cross transpacific systems, and the MAC and MAYA-1 systems in the Americas and the SAT-3 around Africa.
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 120,000 employees and sales of EURO 23 billion in 1999, Alcatel operates in more than 130 countries.