Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced it has been selected by Vodafone in Spain to migrate all networking services onto a highly reliable Alcatel-Lucent IP/MPLS based network. The converged network will support broadband data services (GPRS and 3G), signaling and billing traffic, 3G voice traffic as well as future multimedia evolutions. The project, part of a global network transformation to IP, will enable the operator to guarantee end-to-end quality of service, to optimize its network performance and to support new multimedia services.

By evolving its networks to a next-generation infrastructure, Vodafone will support all services on a single network allowing the mobile operator to optimize its investment and operational expenditures, and accelerate the launch of new advanced and convergent services to the market.

“This project provides our network with the reliability and versatility needed to offer our consumer and corporate clients the highest quality and most advanced mobile services on the market,” said Jaime Bustillo, Technology director from Vodafone Spain. “A streamlined network based on the Alcatel-Lucent IP solution allows us to dramatically improve on CAPEX and OPEX while still gaining new revenue opportunities. As well, Alcatel-Lucent is involved in the Vodafone Group’s overall end-to-end IP transformation initiative so from a consistency point of view, the Alcatel-Lucent IP solution is a perfect fit.”

With the Alcatel-Lucent IP/MPLS solution, Vodafone is optimizing the use of bandwidth in its IP core network, that will dynamically be adapted to the bandwidth needs depending on the volume of data and the type of traffic transmitted. Additionally, its intelligent service management capabilities will allow the operator to guarantee reliability and end-to-end quality, and to diversify its offering by establishing differentiated quality of service levels based on the type of client or the use of the network. This is a significant advantage for high bandwidth multimedia services that are very demanding in terms of network performance.

“Users are requesting more innovative and sophisticated �always on’ mobile services with optimal quality and widespread availability which is very demanding in terms of network performance,” said Olivier Picard, President of Alcatel–Lucent’s Europe and South activities. “Offering a service mix of this caliber requires a complete network transformation giving Vodafone the reliability, performance and flexibility of a converged network architecture. Alcatel-Lucent’s unique high availability features in our service routers are ideally geared toward delivering mobile voice services over an IP/MPLS network.”

Alcatel-Lucent is providing Vodafone with an IP/MPLS core and edge network solution based on its next generation Alcatel-Lucent 7750 Service Router and 7710 Service Router along with the Alcatel-Lucent 5620 Service Aware Manager.

Vodafone joins more than 160 service providers in over 60 countries, including massive, multi-year IP network and service transformation projects at AT&T, BT, Cable & Wireless, and Telstra. According to Ovum-RHK, Alcatel-Lucent was #2 in the IP/MPLS Edge market segment in Q4 2006, with 19% market share.

Two of the world’s leading music companies have partnered on a joint venture in China that will research and develop technology for distributing media to mobile phones.

The revelation Tuesday, sees Sony BMG Music Entertainment and the Warner Music Group join forces to invest in Access China Media Solutions, in what Warner dubbed “a strategic investment”.

Access – a joint venture between Japanese company, Access and US firm, Melodeo – creates software that makes the user’s experience of downloading music, video and ringtones, an easy experience. China currently has around 460 million mobile users and the pair are betting that as mobiles become more sophisticated, they will play an increasingly important role in entertainment.

Thomas Hesse, president of global digital business at Sony BMG said: “We think a good chunk of those consumers will be looking at their phones as an entertainment device.”

According to a press release from Sony and Warner, the pair will be focusing closely on Chinese oriented music.

Sony and Warner will also be keen to examine how to make China’s music market, which is rife with piracy, more secure. Michael Nash, senior vice president of digital and business development at Warner Music said: “Physical piracy in China is an enormous problem that’s created a crisis around investment in repertoire and artists.”

Vodafone has coughed up EВЈ3.34bn (Eur452m) for a 3G license in Egypt, the country’s telecoms regulator said on Monday.

As part of the 15 year agreement, Vodafone will also pay 2.4 per cent of annual revenues from the provided services.

The move makes Vodafone the second Egyptian operator to secure a 3G licence. Etisalat paid EВЈ16.7bn and 6 per cent of annual revenues for the country’s first 3G licence last year. Both operators have been awarded 10MHz of spectrum in the 2GHz frequency band and have five years to provide coverage to the whole population.

However, the National Telecom Regulatory Authority of Egypt said that Vodafone cannot launch 3G services until Etisalat has started operations. Etisalat is expected to launch 3G services by the end of February.

The regulator said that the deal, which was signed by Vodafone, can be also granted to rival operator Mobinil in case it wished to sign the same licence.

Tarek Kamel, the minister of Communications and Information Technology and the chairman of the NTRA, said “The agreement with Vodafone to pay this amount of money mirrors a sincere confidence in the growth of the Egyptian Market with the introduction of the third mobile operator, in the light of the fact that the mobile subscribers in Egypt have surmounted to reach 18 million subscribers with a growth percentage of 70 per cent. The number is also expected to reach 30 millions by the end of 2010″.