1. Alcatel-Lucent’s Managed Services: your partner for profitable growth Frederic Sutter

2. All Rights Reserved © Alcatel-Lucent 2008 Grasp Revenue Growth Opportunities Current Market Context increases the Carriers’ Challenges Monetize Strong Consumer Demand for Telecom Services Deal with Complex Technology and Operations Time While addressing these challenges, operators have the opportunity to partner with ALU to gain OPEX and CAPEX efficiencies and improve return to shareholders Protect Cash vs. Network Investment

3. All Rights Reserved © Alcatel-Lucent 2008 Business Imperatives Solution Drivers Transform business models Speed to market of new subscriber service Capitalize on growth Initiatives Reliable delivery of cost- efficient capabilities Transform technology and operations Lower CAPEX investment with network build Subscriber acquisition and retention Mitigation of subscriber variation risk A Payment structure meeting CAPEX and OPEX requirements that maximizes profits and business growth and if required can tie CAPEX payments with business success Rely on a long term partner to maximize the use of your network assets with highly efficient network operations processes and teams Dedicated global resources to take care of your networks during its whole lifecycle Proactive network planning to support new services introduction and growing demand A flexible network operations platform to enable your growth strategy Increased focus on Customer relationship and satisfaction Rely on Alcatel-lucent’s experts to ensure high-end network KPIs and QoS Build Operate Manage and Managed Infrastructure solutions address these challenges

4. All Rights Reserved © Alcatel-Lucent 2008 Alcatel-Lucent Managed Services Division (MSD) Update Our solutions help our customers optimize and better manage their networks and generate new revenue streams while reducing the associated costs and complexity  Program for managed services excellence  Integration of the multivendor maintenance business into MSD  Completed integration of all global centers  Launched new centers in Romania and India  Investment in platforms, tools, applications and additional shared centers  GPM development program  Expanding capabilities with new solutions Network outsourcing Multivendor maintenance Managed infrastructure  Build-Operate-Manage  Managed Capacity End-to-end services operations Managed Services Division updateOur core businesses Our global mission: Create value for clients by innovating, transforming, and more efficiently managing complex global networks with best-in-class people, processes and technology Increase Alcatel Lucent shareholder value by providing profitable growth in the area of managed services and outsourcing solutions

5. All Rights Reserved © Alcatel-Lucent 2008 Transform business models Speed to market of new subscriber services Capitalize on growth Initiatives Reliable delivery of cost-efficient capabilities Transform technology and operations Lower CAPEX investment with network build Subscriber acquisition and retention Mitigation of subscriber variation risk Business Imperatives And these solutions yield tangible results Proven Benefits  Flexible technology options – with access to all the state-of-the- art technologies  Up to 30% OPEX efficiency gains in network operations  Freed resources to focus on business management and customer relationships  Rapid time-to-market to meet the most aggressive deployment schedules  Scalability to meet unexpected changes in demand  Customized payment model that can support customer’s business objectives  Innovative business design options to address customers’ business transformation strategy Alcatel-Lucent’s credentials…  Global leader in deployment of fixed and mobility networks, supported by 12 NOCs and thousands of technicians worldwide  Comprehensive methodology with a proven track record  Access to unparalleled expertise in planning, managing, delivering and executing network transformations and supporting operations strategies 15 years of experience in Network Operations & Outsourcing 70+ Managed Services Contracts world-wide (>140 mn Subs)

6. All Rights Reserved © Alcatel-Lucent 2008 Build Operate Manage solution summary and timeline Build Operate and Manage Transfer  Transition Plan  Transfer Operational Responsibility & Knowledge Months 2+ Years Months Operate Transfer  Joint Governance  Network Monitoring  Network Administration  Maintenance & Repair  Vendor-agnostic  Consult  Design  Integrate  Deploy Low risk cost-efficient deployment of network & operations infrastructure Reliable network operations ensured by experienced specialists Seamless transfer leveraging proven methodologies Build Operate and Manage Months 2+ Years CAPEX OPEX BOM Client Payments OPEX Payments are typically standard upfront CAPEX investment with subsequent ongoing OPEX costs Unbeaten Multi- vendor Expertise

7. All Rights Reserved © Alcatel-Lucent 2008 Our approach to Managed Capacity... a traditional Build Operate Manage solution …combined with a customized Managed Capacity solution payment model Build Operate and Manage Months 2+ Years CAPEX OPEX PYMT Subscriber Growth BOM Client Payments Managed Capacity Client Payments OPEX PYMT Alcatel-Lucent’s Managed Capacity Solution builds on the Build Operate Manage model and “shares the risk” in the early years of deployment Pricing/payments are based on a combination of managed services, equipment and capacity or percent of revenue

8. All Rights Reserved © Alcatel-Lucent 2008 A successful Managed Capacity agreement includes agreement on … Targeted performance levels  Reflected in network KPIs & SLAs that define the level of network quality to deliver Traffic forecasting (marketing forecast & capacity management)  Ensures that engineered capacity is optimally deployed to meet anticipated usage Service commitment  Volume and/or geographic coverage, to sustain the investment Pricing model  Taking all managed capacity criteria into account Asset ownership/sharing options  Strategy towards network / infrastructure sharing, wholesale capacity selling… Exit criteria and termination conditions  Based on evolution plan and future operations needs

9. All Rights Reserved © Alcatel-Lucent 2008 Alcatel-Lucent Managed Services……….. The INDUSTRY LEADER in new deals signed in 2007 & 2008 Alcatel-Lucent Managed Network Services growth since end 2006: 160 % 2008 Large Deals Awarded:  January – Full Network Operations Outsourcing of Fixed/Mobile Network  March – Managed Network Services (Saudi Arabia)  April – WIMAX Build Operate and Manage (Malaysia)  May – JV and Managed Network Services  June – Full Network Operations Outsourcing Fixed/Mobile Network  August – Build Operate Manage (Qatar)  September – Wireless network outsourcing extended to whole India  October – BT Global Services: expanded outsourcing

10. All Rights Reserved © Alcatel-Lucent 2008 Working today with most major vendors in outsourcing environment …….combined with our multivendor, multi-technology operations…. E/// 40,000 NWE Centre 2G/3G Access Of Core Excellence Microwave NSN 80,000 NWE Centre 2G/3G Access Of Core Excellence Microwave Makes Alcatel-Lucent the leader in multivendor, multi-technology and multi-segment managed network services and outsourcing worldwide!

11. All Rights Reserved © Alcatel-Lucent 2008 Challenge  Customer needs to maintain existing revenues amid strong competition  Need to extract greater value out of the network and drive down costs Solution  Partnership with takeover of operation and maintenance for Mobily’s GSM Radio network, Transmission Network and VMS Network  Mobily maintains responsibility for strategic network planning and development, including the selection of mobile communications locations and equipment Benefits  Greater concentration on core business such as marketing and running customer services  Commitment to a major reduction of operating expenses  Aggressive Service Level Agreements (SLA’s) with strong Key Performance Indicators (KPI) to track progress and results  Faster time to market for new services/technologies and improved service quality and experience for mobile subscribers “To consistently and reliably meet our customers’ expectations, it is imperative for us to ensure a high level of network availability and performance but at the same time we need to minimize our operating costs, for this reason we have selected Alcatel-Lucent for its services capabilities. Alcatel-Lucent’s global experience gives us the confidence that it has the skills and expertise we need to help us achieve these objectives. Our decision to extend the strategic partnership between Mobily and Alcatel-Lucent will greatly benefit our customers with reliable and superior network quality.” Khaled Al Kaf, CEO, Mobily Managed Network Services Mobily Saudi Arabia turns to full Network Outsourcing to reduce operational expenses, grow its customer base and generate new revenues

12. All Rights Reserved © Alcatel-Lucent 2008 Mobily Saudi Arabia and Alcatel-Lucent Our partnership defined Complexity & cost uncertainty Service Level Agreements Key Performance Indicators Firm Price Network Planning and Development, Customer Care retained by Mobily Main Vendor Products Managed: èTechnical Expertise èField Staff Dispatching èTechnical Support L1/2/3 èTools Management Network Operations Network Optimisation Field Operations èFault Analysis & Correlation èTrouble Ticket Dispatch èService Provisioning èNetwork Provisioning èNetwork Surveillance èGSM access network èTransmission network èVMS network

13. All Rights Reserved © Alcatel-Lucent 2008 Challenge  As the second mobile provider in Qatar, Vodafone needed to quickly deploy a mobile network to offer next generation services to customers. This network needed to be rapidly deployed and have a minimal technology support organization on the ground. Solution  Vodafone contracted for the deployment of its mobile network on a turnkey basis.  Alcatel-Lucent agreed to deliver an end-to-end mobile network including radio, core, transmission, applications as well as services for its deployment and management. Benefits  Accelerate time to revenue through a aggressive deployment schedule.  Overall program management and managed services competence allows Vodafone to focus on it’s core business – their customers  Mitigate business risk utilizing Alcatel-Lucent’s local technical and operations professionals and support infrastructure “Building a new mobile network for Vodafone Qatar is both challenging and exciting. But even more important is that Alcatel-Lucent is able to provide a great Managed Service. Providing this will ensure Vodafone Qatar’s customer get the quality of service Vodafone want to give them. The Alcatel-Lucent team has worked hard to ensure the services we create will deliver that. We have worked closely with both Vodafone to design a cost-effective yet solid Managed Services environment.” David Barker, Vodafone Global Account Manager Managed Network Services Vodafone Qatar transforms its mobile landscape with an end to end, multi-standard solution with Alcatel-Lucent

14. All Rights Reserved © Alcatel-Lucent 2008 èSpare Parts Repair/Replacement èField Maintenance èTechnical Support L1/2/3 èTools Management Vodafone Qatar and Alcatel-Lucent Our partnership defined Complexity & cost uncertainty Service Level Agreements Key Performance Indicators Firm Price Network Implementation Network Operations Maintenance èCivil Works èField Engineering èSite Acquisition and Build Out èInstallation and Commissioning èIntegration and Testing èNetwork Monitoring èFault Analysis & Correlation èService Provisioning èNetwork Provisioning èOSS Network Management Network Planning and Development kept by Vodafone Qatar Main Vendor Products Managed: