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Alcatel-Lucent Garners First Commercial VDSL2 Vectoring Deployment in Austria with A1 | Jan 20, 2012 | Fixed Access Infrastructure | Analyst: Erik Keith Event Summary January 19, 2012 -- The Telekom Austria Group’s domestic subsidiary, A1, will be the first network provider worldwide to serve commercial customers with VDSL2-based vectoring technology, provided by Alcatel-Lucent, which enables significantly higher data transmission speeds on its high-performance Giga-Network. Phase one of this latest-generation vectoring technology will be launched in Korneuburg, lower Austria, with a comprehensive, countrywide rollout planned for H2 2012. | Read Press Release | Quick Take Analytical Summary • Current Perspective: Positive on Alcatel-Lucent’s vectoring win/deployment with Telekom Austria’s A1 Giga-Network, as it is the first commercial vectoring implementation. With 2.1 million households and businesses passed as of year-end 2011, A1’s Giga-Network is not massive, but it is still substantial, and Alcatel-Lucent merits credit for delivering the first commercial-ready VDSL2 vectoring technology to market. Moreover, although the first phase of A1’s vectoring rollout is a live-network test starting in Korneuburg (near Vienna), the operator has stated that it will incorporate vectoring into its nationwide network in H2 2012. • Vendor Importance: High to Alcatel-Lucent, which needed a high-profile customer deployment in Q1 2012 to demonstrate timely follow-through on its vectoring product roadmap, announced initially in September 2011 just ahead of Broadband World Forum (complementing its first customer win with Belgacom, announced at BBWF; Belgacom is currently trialing the Alcatel-Lucent vectoring technology, with mass-market deployment scheduled for 2014). Alcatel-Lucent stated that its board-level vectoring (BLV) and system-level vectoring (SLV) line cards would be commercially available in December 2011 (mission accomplished), with its multi-system vectoring solution planned for general availability in H2 2012. • Market Impact: High on the DSL/fixed access market, because with the Q1 2012 commercial availability of its VDSL2 vectoring solution, and corollary deployment by A1 in Austria, Alcatel-Lucent is establishing itself as both a technology and market leader on the important vectoring front. While close rivals such as ZTE are also on track to deliver commercially ready vectoring solutions in 2012, Alcatel-Lucent’s early commitment to vectoring has paved the way for a lead in this market/technology sector, which may prove vital to the company’s long-term success in the evolving DSL/copper access market. CLIENTS ONLY Current Analysis Perspective Competitive Strengths and Weaknesses Response & Recommendations Buyer Actions | Client access - Full report in Fixed Access Infrastructure | More information Share this Current Analysis Competitive Intelligence Highlight: Top

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Telekom Austria Group’s Domestic Subsidiary A1 becomes the First Network Provider Worldwide to Launch the Latest Vectoring Technology by Alcatel-Lucent

• The Telekom Austria Group’s domestic subsidiary A1 will be the first network provider worldwide to serve commercial customers with the latest Vectoring technology that allows significantly higher data transmission speeds on its high-performance Giga-Network; This technology will be launched in cooperation with Alcatel-Lucent
• This noise-cancelling Vectoring technology is able to significantly boost data transmission speeds over conventional copper networks by minimizing the impact of interference or “crosstalk” between the parallel running lines within a cable;
• Phase one of this latest-generation Vectoring technology will be launched in Korneuburg, lower Austria. A comprehensive countrywide rollout is planned for the second half of 2012.

Vienna, 19 January 2012 – The Telekom Austria Group today announced that its domestic subsidiary A1 will be the first network provider worldwide to connect customers using the latest Vectoring technology that significantly accelerates data transmission speeds throughout its Giga-Network. This technology, which is being launched in collaboration with Alcatel-Lucent offers a cost-effective way to significantly boost network capacities over existing copper lines.

The technology helps meet the ever-increasing subscriber appetite for broadband and will also help in achieving the government’s goal for universal broadband access outlined in the EU Digital Agenda for Europe. According to the EU guidelines, all European households should be provided with high-value multimedia services which can only be achieved through broadband connections with transmission speeds of at least 30 Mbit/s by 2020. To meet these EU targets, considerable investments will have to be made not only in the rollout of future-proof infrastructure but also in the efficient optimization of existing legacy networks. This brand-new Vectoring technology enables just that by fully leveraging the still untapped potential of copper lines, which most cases greatly exceeds demand.

Walter Goldenits, CTO, A1 said: “The still untapped potential of copper lines is incredibly impressive. Since the late 1990s, when private households started to use modems for data transmission, we have been able to reach a thousendfold increase in transmission capacities of existing copper lines. We are currently facing a dual challenge: on the one hand, we have to invest in the further rollout of our high-performance fiber optic network going forward, and on the other, we have to provide our customers with a full-coverage broadband network with ever-increasing bandwidths starting from today.”

The latest Vectoring technology fulfills these requirements perfectly by providing cutting-edge noise cancellation. This technology minimizes the interferences among parallel running copper lines within a cable known as ‘crosstalk’. Crosstalk is one of the most significant factors reducing transmission performance within copper networks. Vectoring works much like the noise-cancelling technology used in headphones - it produces a clean signal for each line by measuring the crosstalk from all other lines and generates anti-phase signals to cancel out the crosstalk signal, thus, resulting in almost zero noise, while considerably improving copper line performance and significantly boosting data transmission speeds. Based on this latest-generation Vectoring technology from Alcatel-Lucent, driven by Bell-Labs research, we are able to achieve cost-effective performance gains in the A1 network in real-time, with a short time-to-market and a fast return on investment. As a result, the existing A1 copper network will now be able to achieve data transmission speeds of up to 100 and 50 Mbit/s at distances of up to 300 m and 800 m respectively.

“With the world’s first commercial launch of VDSL2 Vectoring technology, Alcatel-Lucent has demonstrated once again its technology leadership. Based on cutting-edge innovation from our research center Bell Labs, the VDSL2 Vectoring technology marks a further important step in our efforts to get the utmost out of the current network infrastructure and thus create real added value for network operators such as A1 and their customers,” said Stephen Carter, President, Europe Middle East and Africa for Alcatel-Lucent

The Telekom Austria Group plans to rollout this new technology throughout its domestic A1 Giga-Network countrywide. As a first step, this Vectoring technology will be launched in Korneuburg and, following this preliminary test phase, the technology will be made available in all main Austrian cities with a fiber-to-the-curb network (FTTC). In the second half of 2012, the company will introduce this latest-generation technology in the remaining areas covered by the A1 Giga-Network.