Pirelli Broadband Solutions And Arcor: Agreement For The Supply Of GSM/Wi-Fi "Du

Germany's second largest fixed-line operator has chosen a Pirelli solution for the upcoming commercial launch of its new Voice Over IP service

Milan, 11 October 2006 - Pirelli Broadband Solutions, the broadband access and second-generation photonics company of the Pirelli Group, and Arcor (Vodafone Group), Germany's second largest fixed-line operator, signed an agreement for the supply of Pirelli's new "dual-mode" phones. These handsets will be used by Arcor for the launch of a new commercial offer of Internet phone services (Voice Over IP).

The Pirelli "dual-mode" phone is an innovative handset which enables the convergence of fixed and mobile services, integrating cell phone technology with the advantages of phone calls over the Internet. The new Pirelli phone, based on SIP (Session Initiation Protocol), can alternatively function as a telephone handset in WiFi mode or as a mobile phone.

"In Pirelli, Arcor has found an experienced partner that has convinced the company with its innovative dual-mode telephone. With dual mode, we can realise a new generation of fixed network communication. Our voice and DSL connections will be easier to use, more individual and more mobile", emphasised Harald Stöber, CEO of Arcor.

"The innovative dual-mode phone - said Mauro Sacchetto, CEO of Pirelli Broadband Solutions - is the result of our Company's intensive research activity and Pirelli know-how in the broadband technology sector and in Voice Over Ip services. The agreement with a leading operator like Arcor confirms the validity of our solution and will strengthen our presence in one of Europe's main telecommunication markets".

Using the "dual-mode" phone, users will be able to make regular mobile phone calls using a SIM card or call via the internet with a DSL subscription. This solution enables the use of mobile features such as SMS, MMS, e-mail and Internet also through a fixed-broadband connection, with the added benefits of greater bandwith and cost savings.