Alcatel-Lucent and Hong Kong Broadband Network introduce first carrier-class GPON in Hong Kong

Alcatel-Lucent and Hong Kong Broadband Network introduce first carrier-class GPON in Hong Kong

November 28, 2007

    HONG KONG, Nov. 28 /Xinhua-PRNewswire-FirstCall/ --
Alcatel-Lucent (Euronext Paris and NYSE: ALU) and Hong Kong
Broadband Network Limited (HKBN), a wholly-owned subsidiary
of City Telecom (HK) Limited (HKEx: 1137 and Nasdaq: CTEL)
announced today the deployment of the first Gigabit Passive
Optical Network (GPON) in Hong Kong.  The collaboration
contract also includes network maintenance. 
Alcatel-Lucent¡¦s Fiber-to-the-Home (FTTH) solution will
enable HKBN to deliver advanced triple play services to its
subscribers and enlarge its FTTH network coverage in Hong
Kong.  The new network is expected to be in service in
January 2008.

    The demand for advanced multimedia and data services in
Hong Kong is expected to increase substantially in the
coming years, driven by services such as high definition TV
(HDTV) and enhanced multimedia applications.  According to
the FTTH Councils of Asia-Pacific, Europe and North
America, Hong Kong is the world leader in percentage of
homes wired with broadband communications over direct fiber
optic connections, followed by South Korea and Japan.  HKBN,
the first provider in Hong Kong to launch fiber-to-the-home
100Mbps and 1Gbps services in 2005, plans to increase its
coverage from 1.4 million to 2 million home passed within
three years. 

    "After an intensive trial of Alcatel-Lucent¡¦s
GPON solution, we are pleased with the maturity and
performance of the technology," said Paul Cheung,
Chief Executive Officer of HKBN.  "By leveraging
Alcatel-Lucent¡¦s market-leading expertise in FTTH, we will
continue to deploy new and advanced service offerings,
providing seamless and premium connectivity services
catering to our customers¡¦ requirements." 

    "We are proud to partner with HKBN delivering the
first GPON network in Hong Kong," said Sean Dolan,
President of Alcatel-Lucent¡¦s activities for North East
Asia.  "We are committed to the local market,
providing our best of breed solutions and global expertise,
helping Hong Kong to maintain its technology leadership - in
this case advance broadband deployment."

    Under the terms of the agreement, Alcatel-Lucent will
deploy the 7342 Intelligent Services Access Manager
Fiber-to-the-Home (ISAM FTTU) solution. The system is
designed specifically for packet-based voice convergence
and triple play services and delivers maximum bandwidth and
QoS over a fiber access network. 

    For full press release, please refer to our home page
http://www.ctigroup.com.hk/en/ .

    For enquiries, please contact:

     Corporate Communications
     Ms Jessie Cheng
     Tel:   [phone]
     Email: [e-mail]