Service revenue increased by 2.3% to € 4,291 m.

Growth in the current quarter slowed slightly in comparison to the previous quarter with positive momentum being maintained despite tougher economic conditions.

Optimisation of spending by customers was partially offset by continued penetration of high value contracts and successful usage initiatives.

SIMs at the end of the period were 29,146,000 (-3.4% YoY). Mobile voice traffic grew 3.7% to 27,1 bn minutes bringing traffic revenues to € 2,788 m

The higher penetration of PC connectivity devices and success of mobile internet services resulted in good growth in data revenue.

Fixed line revenue growth accelerated to € 379 m with a closing fixed broadband customer base of 1.1 million (including the acquired Tele2 brand).

EBITDA increased by 4.5% at constant exchange rates with the EBITDA margin also growing by 1.1 percentage points, primarily as a result of the increase in revenue, strict control on mobile acquisition and retention unit costs and stable operating expenses, despite continued investment in fixed line services.

The two companies announced that they have signed a partnership agreement for the sale and customization of optical transport systems for metropolitan networks and access platforms for voice, data, IP video and fixed/mobile convergence.

As such, Italtel will be a preferred vendor and system integrator for ECI Telecom technology in the building of integrated communication networks for service providers, communications providers and utility companies in the “Quadruple Play” (data, voice, video, mobile) access and transport markets.

Under this agreement, Italtel has become one of ECI’s Global Partners.

The partnership between Italtel and ECI Telecom will cover the integration and customisation, at the customers’ premises, of ECI’s Multi-Service Access Node (MSAN) Hi-FOCuS, and the metro edge BroadGate line of products.

The Hi-FOCuS supports voice, data and video over one, converged IP platform, while the BroadGate line is an advanced multi-service provisioning platform for the transporting of data streams over fibre optic in metropolitan networks.

High-resolution graphics are available for download at flickr.com/photos/ecitelecom

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TAGS/Keywords

Italtel, ECI Telecom, Global Partner Program, System Integration, VoIP, NGN, IPTV, 3G Wireless, Quadruple Play, transport, access, metro networks, Multi-Service Provisioning Platform, MSPP, Carrier Ethernet, Multi-Service Access Node (MSAN), Hi-FOCuS, BroadGate (BG)

The Italtel Group

Italtel designs, develops, implements solutions for Next-Generation Networks and Services, based on the Internet Protocol (IP). Italtel provides proprietary products, systems, and solutions; Professional Services dedicated to the design, development, maintenance of telecommunication networks; IT System Integration Services (BSS, CRM, Saas, Data Center Consolidation, Integrated Network Security); Network Integration activities, in terms of third party products and technologies customization and software development for the creation of new Web 2.0 services, for IP Unified Communication design and deployment.

Born in 1921, Italtel has designed and implemented telecommunication networks that are among the most innovative worldwide and counts among its customers more than 40 of the world’s top TLC Operators and Service Providers. In Italy Italtel is also reference partner of Enterprises and Public Sector for the deployment of IP Next-Generation Networks and for the development of multimedia convergent services for their customers.

Italtel has around 2,200 employees; almost half of them are D&I specialists. Italtel is present in 25 countries including France, UK, Spain, Germany, Belgium, Russia, Poland, Argentina, Brazil, United Arab Emirates, Saudi Arabia. Italtel’s headquarters are in Milan (Italy) with R&D Labs in Milan and Palermo. Sales offices are in Rome. Website: www.italtel.com

About ECI Telecom

ECI Telecom delivers innovative communications platforms to carriers and service providers worldwide. ECI provides efficient platforms and solutions that enable customers to rapidly deploy cost-effective, revenue-generating services.

Founded in 1961, Israel-based ECI has consistently delivered customer-focused networking solutions to the world’s largest carriers. The Company is also a market leader in many emerging markets. ECI provides scalable broadband access, transport and data networking infrastructure that provides the foundation for the communications of tomorrow, including next-generation voice, IPTV, mobility and other business solutions. For more information, please visit www.ecitele.com.

Certain statements contained in this release may contain forward-looking information with respect to plans, projections or future performance of the Company. By their nature, forward-looking statements involve certain risks and uncertainties including, but not limited to, product and market acceptance risks, the impact of competitive pricing, product development, commercialization and technological difficulties as well as other risks.

Fran Bosecker, Account Director

Vantage Communications

+845-536-1416

Mobile: +845-536-4196

http://blog.pr-vantage.com

The following highlights the performance of individual market segments of the domestic operations of Telecom Italia in Q3 2009 as compared to the same period of 2008:

Consumer

Revenues were down by €674 million (-7.5%) as a consequence of:

• lower revenues from fixed-line telecommunications (-€156 million, or - 8%) and outgoing mobile traffic (-€147 million, or -12%), resulting mainly from a reduction in the customer base
• the impact of new pricing policies for regulated interconnection rates, with special emphasis on mobile termination revenues (-€124 million, of which €92 million resulting from a reduction in rates)
• lower revenues from traditional value-added services (messaging was down by €51 million, or -8%) and contents (-€50 million, or -25 %);
• lower product sales volumes (-€220 million, of which €192 million from mobile devices).

The performance of traditional business segments was partially offset by a growth

• in the customer base and by revenues from broadband services on both fixed-line (+€86 million, or +13%) and mobile communications (+€51 million, or +21%)

Business

Revenues were down by €289 million (-9.3%), mainly as a consequence of the prolonged crisis that is hitting SMEs and causing their consumption to decline.

Both business segments posted a significant drop.

Fixed-line telecommunications were down 11% from the same period of 2008 but remained in line with previous quarters, whereas mobile communications were down 8%.

However, revenues from fixed-line Internet use remained stable and revenues from mobile browsing grew (+26% in Q3 2009 compared to the same period of 2008);

Top customers

Revenues were down by €112 million (-4.0%) as a result of three different trends:

• a strong growth of the ICT solutions and offerings business (+15.2%), where market share rose from approx. 7% in September 2008 to 11% in September 2009
• an improved performance of the mobile business (which experienced a 1.4% growth in Q3 2009)
• a physiological decline of the fixed-line business, partially as a result of the current economic scenario and of the associated decreased consumption in the corporate world;

National Wholesale

Revenues were up by €224 million, or +17.8% (+17.4% in organic terms), driven by the growth of OLOs’ (Other Licensed Operators’) Local Loop Unbundling, Wholesale Line Rental and Bitstream customers.

The sale price agreed upon by the company’s management results from HanseNet’s enterprise value of € 900 m.At the end of 2008 Hansenet had 2.3 million broadband customers and approx. 0.5 million of dial-up customers.

Closing of the transaction is expected in Q1 2010

MC-link took a controlling stake of Alpikom earlier this year and the new merged company will employ over 100 people with estimated revenues of € 28 m.

Joy is a fully integrated solution that includes a 20/1 Mbps ADSL line (or 10/10 Mpbs for the few lucky ones with a FTTH connection) at home and a free USB modem with 10 hours/month of UMTS mobile traffic included at €30 per month.

With this service Fastweb targets young people and those who do not need a traditional PSTN fixed voice line.