Alcatel continues to support RI telecommunications

Alcatel continues to support RI telecommunications

Convinced that Indonesia will soon be on its journey toward
recovery, Alcatel has never changed its commitment to this
country.

And it should not be surprising at all.

The country's huge population and the vast geographical area
represent a significant market for this global telecommunications
company, which has been a leading supplier of communications
systems to local state-owned and private sector customers. In
addition, Alcatel's track record for the 27 years of its
operation in Indonesia is impressive.

From the construction of the 10,000-km-long digital microwave
trunk network spanning the islands of Sumatra, Java, Nusa
Tenggara and Sulawesi to the installation of the Intelligent
Network (IN) that enables Indosat's customers to charge their
international calls directly on their Citibank Visa cards. From
the introduction of the International Direct Dialing (IDD) of
Indosat to the 500,000 lines network infrastructure for GSM
cellular phone services operated by Satelindo to PT Telkom's
undersea fiber optic cable from Jakarta to Surabaya.

Indeed, there are not many companies in the world that have
the capability to offer such a complete range of
telecommunications products and expertise as Alcatel. It has been
delivering microwave and fiber optic backbones, digital cellular
mobile telephony, undersea links, satellites and other turnkey
solutions. It has introduced technological breakthroughs such as
Synchronous Digital Hierarchy (SDH), the GSM mobile telephony
standard, the Intelligent Network, and the Fiber-in-the-Loop that
is available to PT Telkom's customers in Jakarta.

With such a long list of major involvement in the development
of the Indonesian telecommunications sector, Alcatel has
demonstrated its solid commitment to Indonesia despite the
current crisis. "We have always taken a long-term view of
Indonesia. We see the current economic slowdown as an opportunity
to consolidate and strengthen the basis of our activities here,"
said John Wilkinson, President Director of PT Alcatel Indonesia.

The company has continued to invest in the development of its
human resources by providing training, both inside and outside
the country, and by sending them away for overseas missions.
Currently, a number of their local technical engineers are
assigned to work on various projects in Australia, Europe and the
Middle East.

As the Internet explosion brings countries throughout Asia
into a global IP network, it is logical to expect that Indonesia
will move in the same direction. Therefore, many of the future
technologies are going to be IP-based, and it is definitely going
to change many customers' requirements. To anticipate these
changes, Alcatel has implemented a comprehensive strategy, in
which the thrust of its activities is in the IP and data
solutions.

The recent acquisitions of Assured Access, Xylan and Packet
Engines, three U.S. companies actively involved in developing
Internet technologies, are proof of Alcatel's strong focus on the
Internet. To further strengthen its key position in the IP
market, the company has even established a separate Internet
Division, integrating the unmatched resources of Assured Access
and Packet Engines with Alcatel's own.

In the area of Internet access technology, Alcatel is already
the leader of Asynchronous Digital Subscriber Line (ADSL). With
this technology, subscribers can enjoy 200 times faster access
than today's standard analog modem. As a testimony of Alcatel's
leadership in this field, Singapore Telecom's Magix is able to
deliver interactive multimedia services to 98 percent of the
Singapore population using Alcatel's ADSL.

Today, the company, which is present in over 130 countries
around the world, controls over 35 percent of the world ADSL
market and 52 percent of the U.S. market. In Indonesia, a field
trial of ADSL was successfully conducted with Divisi RisTI, the
R&D arm of PT Telkom, last year. It is expected that in a few
years' time the interactive multimedia technology will also
become available to Indonesian subscribers.

Alcatel's Internet initiative is not limited only to ADSL.
Recently, the company unveiled its Alcatel 2ip concept. It
encompasses a broad range of powerful, next generation,
integrated Internet technology for established as well as new
network operators. It includes the 2ip-Family of products and the
2ip-Ready program that will bring IP technologies to customers
who need modular technologies capable of offering specific
applications as well as integrated solutions.

To move to a higher level and to provide reliable Internet
infrastructure that can be accessed from anywhere in the world,
Alcatel has also initiated the construction of SkyBridge project.
Presently, it is the only broadband satellite-based network that
will deliver broadband interactive services, including high speed
Internet access, telework, multimedia entertainment and education
services.

To address the needs of large and medium enterprises, Alcatel
offers Alcatel 4400 PBX, the world's first IP-PCX, an IP-powered
Private Communications Exchange for integrated enterprise
voice/data and fixed/mobile communications. Furthermore, thanks
to the synergy between Xylan and Alcatel, the latter can now
offer superior portfolio of data switching equipment for
enterprises as well as the forthcoming traffic aggregation
equipment for service providers.

In the consumer market, its One-Touch GSM family of mobile
phones are known for their durability and advanced features and
are targeted at everyone from teenagers to executives. Alcatel
has been in the front line in developing screenphones, which
enable cellular phone users to enjoy various value-added
functions such as wireless e-mail access, data communication and
personal organizer. A version of its One Touch Pocket mobile
phone even has a built-in Web surfing capability. In fact,
Alcatel aptly recognized the wishes of teenage customers and
offers the best-selling One Touch Easy, the first colorful mobile
phone to appear on the market in 1997.

Alcatel has grown into a unique and highly successful company
not only because of its broad range of offerings, strong R&D
activities, expertise in network integration and management, but
also because of the wealth of talent and experience from the
diversity of its teams. Alcatel's employees come from such a wide
background of skills, knowledge and nationality. "Maximization of
these strengths has resulted in highly productive teamwork," said
Wilkinson.

With 118,000 employees worldwide and technological leadership
in diverse areas -- from submarine cables to satellites, from
wireless to wireline products, the company definitely has what it
takes to deliver customized solutions to meet the needs and
demands of its customers.

"Indonesia may not be moving at the same pace as the other
countries in the region at the moment, but it will catch up.
Alcatel shall be in the leading position to offer the best
solutions," concluded Mr. Wilkinson.

For more information, please contact
PT Alcatel Indonesia
Wisma Korindo
Jl. M. T. Haryono, Kaveling 62
Jakarta 12780
Phone: (021) 797-6262
Fax: (021) 797-6263