Paris, November 28, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) announced today the successful demonstration of Europe's first broadcast of live TV channels on mobile handsets in S-band. The demonstration took place in Alcatel's UK premises. It is using the new DVB-SH standard (Satellite services for Handhelds), which is currently being drafted by the DVB Project. To perform this demonstration, Alcatel was assisted by UK broadcasters Sky, ITV and BBC.

Representatives  from  European mobile operators, TV broadcasters, industry analyst  firms and regulatory bodies attending this demonstration were able to  enjoy high quality images displayed on SAGEM myMobileTV handsets. These terminals  are  using  the  S-band  telecom  frequency  between 2.17GHz and 2.20GHz,  which  is  adjacent  to  the  3G/UMTS  band. 30MHz of spectrum is currently  available  all  across  Europe and in other major regions in the world.

DVB-SH  is  a  new  technology  targeting  the  S-band. DVB-SH is a related standard  to  DVB-H.  With  DVB-SH  technology,  Mobile  TV  signals can be broadcast from satellites as well as from terrestrial transmitters directly to  handhelds.  DVB-SH  handhelds  can  be designed in such a way that they become  compatible with DVB-H so that both standards can be received in one
end-user terminal.

In addition, Alcatel demonstrated two possible key technical features using the  DVB-SH  standard.  Reception  Antenna  Diversity,  a feature using two antennas  inside the same mobile device, enables improvements in the signal quality under difficult conditions. Furthermore, improved Time Interleaving overcomes fading impairment in mobility conditions. The significant quality enhancement was demonstrated by implementing these DVB-SH features.

On  the  occasion of this demonstration, Professor Ulrich Reimers, Chairman of  the  Technical  Module of DVB Project declared: "I am delighted to have been given the opportunity to witness a live Mobile TV demonstration in the S-band  even  before  the new Mobile TV standard has been finally designed. Within the DVB -Project, we have decided to give that standard a new name -
DVB-SH  - digital video broadcast from satellite for handhelds. DVB-SH is a perfect  complement  to  other standards, such as DVB-H, which is typically using  UHF  frequencies but is capable of using the L-band. Thus DVB-SH may have a significant impact on the global Mobile TV industry."

Olivier   Coste,   President   of  Alcatel's  mobile  broadcast  activities concluded:  "Quality  of  Service is essential for operators to attract and retain  Mobile  TV  users.  Today,  we  demonstrated that high quality live Mobile  TV  using the S-band works. This can be up and running commercially very soon. With the additional benefits of universal indoor and countrywide coverage,  the  fundamentals  of  our  solution are already solid enough to enable  operators to profit from sustainable Mobile TV market growth thanks to the S-band."

About Alcatel's "Unlimited Mobile TV" solution
The goal of Alcatel's "Unlimited Mobile TV" solution is to make television available on mobile phones and other devices throughout rural and urban areas, including indoors, with a wide range of programming options and excellent image quality, regardless of the number of viewers simultaneously watching the same program. This universal broadcast coverage is possible thanks to the unique combination of a high-power geo-stationary satellite for cost-effective nationwide coverage and a network of low power repeaters, co-located with mobile base stations, to provide urban and indoor coverage. This innovative solution uses DVB-SH, an evolution of the DVB-H standard in the 2 GHz MSS band, a telecom frequency band between 2.17 and 2.2 GHz associated with satellite usage, which is adjacent to the 3G/UMTS band. This 30MHz band is currently available all across Europe. For more information: www.alcatel.com/mobiletv