Alcatel and Philips Complete EDGE End-to-end Interoperability Tests

11/24/2003 - Alcatel (Paris: CGEP.PA and NYSE: ALA) and Royal Philips Electronics (NYSE: PHG, AEX: PHI) have announced the success of a series of interoperability tests performed with Alcatel's EDGE-ready EvoliumTM network solutions (radio access and core) and Philips Nexperia Cellular System Solution. On show at GSM Americas in the Alcatel booth, the EDGE video-streaming demonstration (using the FTP File Transfer Protocol) is set to replicate the results of the tests.

The tests, carried out on a scale 1 reference terminal in November of this year, achieved a successful uninterrupted download of 30 Mbytes at 220 kbit/s. This is a best-in-class speed achieved in a live EDGE operational environment, and a major improvement on GPRS performance. This achievement provides real promise for the rapidly developing mobile multimedia market.

The test results highlight the availability and the reliability of a complete EDGE end-to-end solution based on both companies' technologies. This is a pragmatic answer to all mobile operators around the world who consider introducing EDGE in their mobile networks in order to attract new subscribers and to generate new revenue streams. These tests also demonstrate the maturity of the solution to mobile handset manufacturers willing to rapidly offer competitive EDGE handsets.

All EvoliumTM base stations shipped by Alcatel in 1999 and 2000 include an option to seamlessly host plug-and-play EDGE transceivers and since 2001, EDGE has been an integral part of Alcatel's standard product offering. In addition all EvoliumTM base stations delivered by Alcatel are fully EDGE-equipped at no extra cost. This means that all Alcatel GSM/GPRS mobile infrastructure customers can simply boost their existing network capabilities by upgrading to EDGE as required.

Built around the Philips Nexperia Cellular Multimedia Baseband chip (PCF5213), RF Transceiver (UAA3537), Power Amplifier (BGY284E), power management unit (PCF50603) and software package, the Philips' market leading Nexperia Cellular System Solution supports worldwide GSM roaming as well as GPRS and EDGE for the unmatched availability of 4 downlink channels and 2 uplink channels, with protocol stacks fully validated by IOT (Inter-Operability Tests). This system solution provides handset manufacturers with enhanced data rates to support the latest multimedia applications (MMS, Java-based gaming, MP3, Video-MPEG4 and MPEG4 encoding, email, etc).

"With EvoliumTM, Alcatel provides GSM operators with a very efficient and future-proof solution to seamlessly introduce EDGE as a natural evolution to existing GSM/GPRS investments," said Marc Rouanne, chief operating officer for Alcatel's mobile activities. "And for those operators eager to take up the challenge of 3G/UMTS, Alcatel considers EDGE and UMTS as two complementary mobile broadband options. 3G/UMTS best matches the needs of densely populated urban areas, while EDGE corresponds to an additional national coverage, thus paving the way for true nation-wide mobile broadband data services." Rouanne added.

"In line with our Connected Consumer vision, The Nexperia Cellular System Solution provides handset manufacturers with a flexible, future-proof, low-risk and cost-effective approach to handset designs," said Peter Baumgartner, senior vice president and general manager Global Market Segment Mobile & Personal, Philips Semiconductors. "The proven interoperability of our EDGE system solution with Alcatel's leading EvoliumTM EDGE-ready solution strengthens our position as the partner of choice for all EDGE handset manufacturers."

About Alcatel
Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world. Leveraging its long-term leadership in telecommunications networks equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of EURO 16.5 billion in 2002, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet:

Alcatel is now the world's fastest growing GSM/GPRS and EDGE supplier. Alcatel has established a dominant position in today's expanding emerging markets, where it is now the leader, with a 25% share. Alcatel's diversified portfolio of over 150 mobile operators includes a strong segment of greenfield operators - in Latin America, Central & Eastern Europe, Asia-Pacific and Africa & the Middle-East - which are poised for the most rapid expansion. Alcatel's highly efficient business model implemented through its EvoliumTM radio & core solutions - GPRS and EDGE ready, has significantly contributed to this success. Alcatel offers mobile operators a GSM 800, 900, 1800 and 1900MHz end-to-end solution offering, including radio access and core network systems, services platform and mobile terminals. Moreover, the company is expanding its offering in advanced applications and services. Alcatel's application portfolio leverages and extends the value of telecom networks. Alcatel's Open Service Delivery Engine is the ideal applications environment based on next generation IN and J2EE technology. It enables the implementation of a wide range of applications such as network proxies, WAP or SMS gateways, messaging solutions such as UMS or MMS, 0800 and 0900 services, mobile or fixed VPN solutions, a complete and convergent real-time payment chain. Alcatel's UMTS solutions are a reality today, with more than 20 UMTS pilot networks delivered in Europe and in Asia. Evolium SAS, the Alcatel-Fujitsu joint venture, delivers a mobile infrastructure that is 3GPP-compliant, field-proven and capitalizes on Japanese 3G technical and field experience.

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 31.8 billion in 2002. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 166,500 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at

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