[Alcatel and SMG sign agreement to bring TV and video content to 3G mobile users in China and internationally.]

Paris -- 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.

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.

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

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