Alcatel announced results from leading research analysts that show it is taking significant market share in the global Service Provider Edge IP Router market segment, and continuing to strengthen its position in the worldwide multi-service switching (MSWAN) market. Alcatel's success is fuelled by triple play applications, Ethernet- and IP-based VPNs, and aggregation of broadband and mobile traffic.

Alcatel secured 11% of the IP Edge router market in Q2 2005, according to research firm Ovum-RHK, up from 3% in Q1. The market grew by 7% quarter-over- quarter to USD 315 million, an indication that as service providers begin the transformation of their networks to accommodate and consolidate carrier-class business VPNs and triple play applications such as IPTV, Voice over IP and high-speed Internet -- the edge is where capital expenditures are focusing.

Alcatel took 19% of the European IP Edge router market in Q2 2005, based on Ovum-RHK data -- up from 5% in Q1. The significant increase is based on network deployments with customers such as France Telecom, Telenet in Belgium, and TeliaSonera in Scandinavia. IP progress in Europe will be further boosted by recent wins with BT 21CN, Be and Exponential-e in the UK, Portugal Telecom, and Auna in Spain. Alcatel's IP portfolio already has more than 70 customers spanning 30 countries including SBC, TELUS and SaskTel in North America, as well as China Telecom and China Netcom who have deployed the solution in more than 20 provinces.

"Ovum-RHK believes that Alcatel will have firmly established itself as the number three edge router vendor by the end of 2005," said Mark Seery, Ovum-RHK Vice President, IP Service Infrastructure. "Driven by new spending in the areas of IPTV, VPLS, and IPVPNs, a window of opportunity has been opened in the market place for equipment vendors that can address both Ethernet aggregation and high capacity Ethernet/IP service switching in one solution set."

Alcatel has also grabbed a greater share of the USD 450 million MSWAN market, solidifying its #2 position with 24.8% of the revenue in Q2 2005 -- up from 21% in Q1, according to data from research firm Dell'Oro. Alcatel's growth clearly demonstrates that fixed and mobile operators continue to embrace Alcatel's multi-service portfolio for new revenue opportunities.

"We are very pleased with the growth in our business lines, especially the healthy balance between the resurgent MSWAN and the growing IP Edge markets," said Basil Alwan, President of Alcatel's IP activities. "We are now benefiting from the intersection of demand for IPTV and carrier-class business services based on IP and Ethernet -- trends we anticipated and for which we optimized our platforms. It's clear from the expanding number of Tier 1 service providers, both fixed and mobile, who are adopting our portfolio that we have hit the sweet spot for what they need as they build their infrastructure for the next generation of service delivery."

Alcatel's IP Edge portfolio includes the Alcatel 7750 Service Router, 7450 Ethernet Service Switch, and 5620 Service Aware Manager. During the quarter Alcatel introduced the 5750 Subscriber Services Controller (SSC), an unparalleled subscriber management suite that further strengthens Alcatel's compelling Triple Play Service Delivery Architecture.