UK's TalkTalk to build new network to deliver digital on-demand TV

Leverages Alcatel-Lucent Velocix solution for new Content Delivery Network

LONDON, UK and PARIS — Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has signed a three-year agreement with TalkTalk Group (LSE:TALK), 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.