1. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION Nuremberg, October 2011 Small Cells Demo Training Business Update Alastair Berry, Small Cells PU

2. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION 2011 has been a great growth year There is a gap, but not an impossible one to close Year is very back end loaded in Q4 and actual track below forecast WE NEED YOUR HELP to close the gap on orders We can do it with a big Q4 push? Urgent engagement with Operator Senior Executives to discuss femto acceleration & value propositions beyond coverage (churn reduction, data offload, applications, etc) Capitalise on progress with Enterprise open access to diversify from Home Enterprise V1.5 fully available in Open Access mode More use cases later Challenge for customers to buy-more-now & pull forward sales from Q1 2012 Identify joint marketing co-op funding (eg. € per box) to develop joint marketing support, training, and including customer sales incentives Even if it has 2012 impact, let us know

3. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION Enterprise Cells Deployment Scenario Large Enterprise/Corporate Coverage 1.Service Description ­Provide enhanced indoor coverage through deployment of multiple access points in large enterprise or corporate environment to improve customer experience through improved voice services and enhanced mobile data 2.Enterprise Benefits ­Improved voice service experience through better quality and fewer dropped calls ­Enhanced data service for mobile data services such as email ­Have key personnel more consistently available when in the building 3.Operator Benefits ­Higher customer satisfaction through better coverage experience ­Offload of macro network for mobile data services ­Additional ARPU opportunities for VIP services level

4. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION Enterprise Cells Deployment Scenario Retail & Shopping Mall 1.Service Description ­Provide enhanced public access indoor coverage in retail outlets and nearby mall location ­Provides customers with 3G coverage to improve quality of service ­Presence API can be used to detect customers close by or entering shop and send vouchers/coupons via SMS. Can be adapted to location based advertising 2.Enterprise Benefits ­Ensures 3G coverage with good quality of service within the shop. ­Attracts customers looking for connectivity, increases time at establishment and so revenue increase. 3.Operator Benefits ­Higher customer satisfaction through better coverage experience ­Offload of macro network for mobile data services ­Possibilities for location based advertising ­Where retailer is also the mobile operator, presents the opportunity for up-sell, demonstration of small cell experience, VIP customer experience

5. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION Enterprise Cells Deployment Scenario Hotel & Conference Centre 1.Service Description ­Provides guests, and conference rooms, with 3G coverage to improve existing service ­Ensures good quality of service within the hotel ­Femto groups could ensure constant coverage and call mobility. ­Based on presence, possible to have hotel room phone number routed to your mobile whenever in the hotel. 2.Enterprise Benefits ­Ensures 3G coverage with good quality of service within the hotel and conference centre ­Attracts guests and clients looking for connectivity ­Source of differentiation for business travellers and critical users in the same way free WiFi is used 3.Operator Benefits ­Higher customer satisfaction through better coverage experience ­Offload of macro network for mobile data services ­Possibilities for location based advertising

6. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION Enterprise Cells Deployment Scenario Temporary Coverage 1.Service Description Enterprise cells could be quickly deployed in temporary locations where a COW or other means are either not available, possible or cost effective. 2.Enterprise Benefits Locations with short term needs can receive mobile 3G coverage, such as a building site or conference / festival. 3.Operator Benefits By offering quick, low cost coverage for short term needs, operators can meet short term demands without planning permission.

7. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION WHAT CHALLENGES DO WE FACE? THE GAME NEEDS TO EVOLVE FROM COVERAGE ALONE Enhanced Coverage 5 bar experience Indoor coverage Not spot to Hot spot Device Evolution Smart phone explosion Driving changing usage patterns From voice & SMS to video & data Churn Reduction Family effect Enhanced customer experience Tariff Data Offload Enhanced customer experience Lower TCO Urban densification Optimise backhaul WiFi New Services Enhanced customer experience New revenues Enable the wisdom of the crowd Small Cells address all of these business challenges