Velocix. Revolutionizing Digital Delivery.

UK’s TalkTalk to build new network specifically designed to deliver high quality digital on-demand TV

London, UK and Paris, October 20 2010

Leverages Alcatel-Lucent Velocix solution for new Content Delivery Network

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has signed a three-year agreement with TalkTalk Group, the biggest provider of broadband to Britain’s homes, to build a Content Delivery Network (CDN). This CDN network, which will run over TalkTalk’s existing high speed IP network, puts content closer to the end user to increase the quality of experience for its digital on-demand TV customers beyond that which is available over the Internet today. The agreement, which also covers managed services, installation and commissioning, leverages the powerful technology gained through Alcatel-Lucent’s acquisition of Velocix.

Alcatel-Lucent’s Velocix 7810 range of products and services allows TalkTalk to reduce the cost of streaming digital TV traffic to its customers while paving the way for new revenues. This CDN announcement comes as the first related to YouView (formally known as the Canvas Project), which is an open, Internet-connected television platform built on common standards, by the United Kingdom's terrestrial broadcasters BBC, Channel 4, ITV plc and communications companies Arqiva, BT and TalkTalk.

“By enabling our network with Alcatel-Lucent Velocix infrastructure, we will be able to lead the market in digital delivery, further showcasing TalkTalk’s leading innovation in the UK market,” said Max Alexander, TV & Media Director of TalkTalk. “Alcatel-Lucent Velocix’s experience of operating a global CDN, coupled with its market leadership and extensive experience in video delivery were major factors in our selection. We believe Alcatel-Lucent is best positioned to support us in the deployment and operation of our own CDN.”

The Velocix digital media delivery solution allows TalkTalk to deliver digital video content to its subscribers with an assured Quality of Service and low cost. TalkTalk is using the Velocix solution to deliver YouView traffic, namely UK television content directly over IP networks to subscribers’ set top boxes and PCs. Content may be downloaded directly into the Velocix infrastructure and then dynamically distributed across the TalkTalk network to end users. By delivering the content from within its secure network, rather than from the public internet, TalkTalk is able to guarantee a better user experience to its end users, as well as significantly reducing its peering costs for internet connectivity.

“We are witnessing an explosion in data traffic over both fixed and mobile networks which is set to continue,” said Paul Larbey, Vice President and General Manager of Velocix, a wholly owned subsidiary of Alcatel-Lucent. “Our aim is to work with TalkTalk to develop an intelligent network architecture that can handle the extra demand efficiently while at the same time, creating the potential for new revenues by exposing the assets within the network in a secure way.”

The Alcatel-Lucent Velocix portfolio is a key element of Alcatel-Lucent’s High Leverage Network™ architecture - a fully converged, scalable, next generation, all-IP multiservice infrastructure that enables operators to deliver traffic more reliably, efficiently and at the lowest cost, while also leveraging the network to generate revenue from sophisticated managed services and applications.

About TalkTalk

• TalkTalk, launched in February 2003, is the biggest provider of broadband to Britain’s homes. It now has over 4.2 million home phone and broadband customers signed up to TalkTalk and Aol Broadband.
• The TalkTalk fully unbundled network now extends to approximately 1,700 exchanges, covering 80% of the UK population, with 77% of TalkTalk customers now on its own network.
• In uSwitch’s Customer Satisfaction Report in 2008, TalkTalk was voted the best value for money home phone provider and the best value for money bundle (combining home phone and broadband). This is the most comprehensive survey of UK telephone and broadband suppliers, and is based on the verdicts of over 10,000 home phone and 11,000 broadband customers.
• One of the most comprehensive sites on the web, TalkTalk's portal www.talktalk.co.uk provides 25 channels and over 55,000 pages of constantly updated information, resources and entertainment content. The site receives over 8 million unique visitors per month, a total of 286 million page views. The site gives access to online services from shopping to sport and money to entertainment and a Members Area with exclusive content and offers.
• TalkTalk is one of seven partners behind YouView (www.youview.com), the new internet-connected TV service, along with the BBC, ITV, BT, Channel 4, Arqiva and Five. YouView is expected to launch to UK homes in mid 2011.
• Follow TalkTalk on Twitter and on our blog: twitter.com/talktalktips and www.talktalkblog.co.uk