Increased capacity to improve video capabilities allowing support of safety monitoring under 'Information City' program while enhancing broadband service for customers

Moscow, Russia, January 31, 2013 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) has tripled broadband network capacity and speeds for Russia's largest cable TV operator, National Cable Networks (NCN), part of the OJSC Rostelecom group. The enhanced network will support a dramatic increase in video traffic as a result of surveillance cameras being installed across Moscow. 

In the end of 2011NCN won tenders to install the video surveillance system that will enhance safety in the city under the municipal'Information City' program. This program aims to improve the quality of life for city residents by using information technologies to improve safety, healthcare and the management of city utilities.

As a participant in the program, NCN will use its network to carry video feeds from the surveillance cameras installed in porches, courtyards and other public places, to the Moscow Department of Information Technology's data processing center. The deployment of Alcatel-Lucent's 100 gigabit per second (100G) fiber optic technology will support the live relay of these high-definition video feeds across the city.

Alcatel-Lucent's 100G fiber optic technology supports a capacity of up to 8.8 Terabit per second - the equivalent of 1.32 million HDTV channels streamed at the same time - over a single optical fibre.  In addition to supporting increased video traffic from the surveillance cameras, it will also sufficiently boost NCN's network to allow the operator to offer its broadband customers enhanced 'triple play' video, high-speed Internet access and voice services.

Dmitry Bragin, OJSC Rostelecom Vice-President and Moscow Macro regional Brunch Director and also NCN General Director, said: "The improvements in network speeds and capacity will support the state program implementation and help to resolve safety issues in Moscow.  It will also allow us to enhance the quality of service for our existing customers and meet their growing demand for Triple Play services."

Alexander Tikhonov, Head of Alcatel-Lucent business in CIS, said: "Alcatel-Lucent is committed to providing solutions that help improve services within major cities. We have deep-rooted expertise in the delivery of fiber-based broadband technology to enhance people's lives. The increase in capacity, enabled by the new network, will meet the needs of the City and of NCN's customers."

About the Alcatel-Lucent solution for NCN
Alcatel-Lucent is providing NCN with a converged 100 Gigabits per second (100G) network infrastructure spanning both IP/MPLS and optical domains. This will be accomplished using 100G transponders on the 1830 Photonic Service Switch (1830 PSS) for NCN's Metro Dense Wave Division Multiplexing (DWDM) network.

About Rostelecom

Rostelecom (www.rostelecom.ru) is Russia's largest national telecommunications operator with presence in all Russian regions. The Group is a universal operator and undisputable leader of broadband and pay-TV markets in Russia with over 9 million fixed-line broadband subscribers and over 6 million pay-TV subscribers. As Rostelecom develops its mobile data networks, its position as a major mobile operator is growing with over 13 million currently subscribed to Rostelecom's mobile voice services. The Company currently has approximately 28 million local fixed-line voice subscribers and it is the leader in the corporate and government services segment. The Group is also an important innovator that provides solutions in the field of medicine, E-Government, cloud computing and education.

Rostelecom was assigned a 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard & Poor's respectively, both with a 'Stable' outlook. The Group generated RUB 159.9 billion of consolidated revenues, RUB 64.7 billion of OIBDA (40.5% of revenues) and RUB 23.4 billion of net income for the six months ended June 30, 2012.



distributed by