GTE Selects Lucent Technologies to Supply PCS CDMA Network in Buenos Aires

BUENOS AIRES - GTE and Lucent Technologies today announced they have signed a multimillion dollar contract for Lucent to provide a wireless Personal Communications Services (PCS) network based on Code Division Multiple Access (CDMA) technology to GTE's Argentine subsidiary, GTE PCS S.A., in Buenos Aires.

In June, GTE won one of two 40 MHz PCS wireless telephone licenses for Buenos Aires, complementing its existing wireless licenses in the interior of Argentina and expanding its subsidiaries' coverage to the entire country.

GTE's subsidiary, CTI Movil, was the first to implement CDMA technology in Argentina. This new phase of GTE's network expansion extends GTE's lead as the sole provider of wireless CDMA technology in both cellular and PCS frequencies. CDMA digital technology allows GTE to add capacity, thereby improving quality of service and enabling new features like text messaging and delivery of Internet-based content to mobile devices.

"Lucent is the leader in development and deployment of CDMA technology," said Fares Salloum, GTE senior vice president - international operations. "We are pleased to have the benefit of Lucent's extensive experience as we expand our services to all of Argentina."

Under the terms of the agreement, Lucent will provide Mobile Switching Centers (MSCs) based on the industry-leading 5ESS Switch platform, PCS Minicells, as well as the GALAXY Power System 4848 and Unigy II batteries.

The contract also calls for the installation of a Wireless Intelligent Network software platform that will allow GTE to provide to its customers value-added services such as Over-the-Air Service Activation, Short Message Service Center (with TeleCommunication Systems), Standalone Home Location Register and Wireless Virtual Private Network (VPN).

The Over-the-Air Service Activation feature means GTE's customers can activate their phones remotely without ever having to visit a customer service center or sales office. The Short Message Service Center feature allows cellular phones to receive and send short text messages and act as a pager.

"By selecting Lucent, GTE will have the best path for delivering next-generation wireless services to its customers," said Victor Agnellini, sales vice president of Lucent Technologies for the Southern Cone. "We are very pleased to, once again, collaborate with GTE in bringing the latest technology to Argentina."

CDMA is a digital wireless technology based on the IS-95 air interface. This technology reduces the static and cross-talk sometimes heard on analog systems, and provides a "soft hand-off" capability that makes call hand-offs between cell sites and mobile switching centers (MSCs) virtually unnoticeable to customers.

Lucent has more than 160 CDMA networks in commercial operation or under construction for customers worldwide, handling about 10 million calls per day. In the Caribbean and Latin America region, Lucent Technologies is also building CDMA networks in Mexico, Brazil, Venezuela, El Salvador, Guatemala, Puerto Rico and the Dominican Republic.

About GTE

With 1998 revenues of more than $25 billion, GTE is a leading telecommunications provider with one of the industry's broadest arrays of products and services. In the United States, GTE provides local service in 28 states and wireless service in 18 states, as well as nationwide long-distance, directory, and internetworking services ranging from dial-up Internet access for residential and small-business consumers to Web-based applications to Fortune 500 companies. Outside of the United States, the company serves customers on five continents. Additional information about GTE can be obtained at http://www.gte.com.

GTE's community and philanthropic programs target excellence in education, particularly math, science, technology and literacy. GTE also supports job training, delivery of health and human services, and the arts. The company's newest program is GTE Reads, a public charity designed to create public awareness, increase fundraising and support organizations dedicated to improving America's literacy levels. GTE customers can contribute to GTE Reads by checking off a box on their bill. Others can contribute through the GTE Superpages web site.

About Lucent Technologies

Lucent Technologies (NYSE:LU) designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Laboratories is the research and development arm for the company. For more information about Lucent Technologies, headquartered in Murray Hill, N.J., U.S.A., visit our website at http://www.lucent.com .