It
is expected to close by mid-2006.

The equity research reports and recommendations provided by Standard +
Poor's Equity Research Services are prepared separately from any other
analytic activity of Standard + Poor's. In this regard, Standard + Poor's
Equity Research Services has no access to non-public information received by
other units of Standard + Poor's., Genesys
Telecommunications Laboratories, Inc.
"With 'Istanbul' and Alcatel's Genesys, we are allowing enterprises to
leverage existing or future infrastructures , bringing together telephone and
computer capabilities for increased collaboration and productivity ," said
Anoop Gupta, corporate vice president of the Real-Time Collaboration Business
Unit at Microsoft . Visit http://www.

pbx kei

Standard + Poor's believes the regional Bell operating companies (RBOC)
will continue to see additional access line declines of at least 4 percent, as
wireless, cable, and Internet telephony offerings further penetrate US
households. SBC has agreed to acquire AT+T in a mostly stock-based $16
billion deal, which is subject to approval by shareholders and regulators. In addition there is a look at key players in the wireline
telecommunications industry such as AT+T (NYSE: T ), SBC Communications
(NYSE: SBCVZ)."
Instant messaging users are already using collaboration and presence
functionality to see if colleagues and others are online and chatting, and the
user experience will be significantly enhanced with telephony integration.

caller telecomunications

Each survey is organized into
the following sections: Current Environment, Industry Profile/Industry Trends,
How the Industry Operates, Key Industry Ratios and Statistics, How to Analyze
a Company, Industry References, Comparative Company Analysis, and a Glossary
of terms used in that industry.com. Standard + Poor's does not trade for its
own account.
For more information, visit http://www. The
product is designed for the largest companies in the world, supporting more
than 10,000 users even in the earliest versions .3 billion in 2004, Alcatel operates in more than
130 countries.

unscrambling wireline

About Microsoft
Founded in 1975, Microsoft is the worldwide leader in software, services
and solutions that help people and businesses realize their full potential.

findlaw wireline

caller canarie

The survey, Industry Survey on
Telecommunication: Wireline, is published twice yearly by Standard + Poor's, a
leading provider of independent investment research, ratings and indices.

About Standard + Poor's Industry Surveys
Industry Survey on Telecommunications: Wireline is part of the Standard +
Poor's Industry Surveys series, produced by its senior equity analysts, that
keeps a watchful eye on 52 U. (Nasdaq: MSFT) today introduced a new, combined
solution that delivers converged enterprise communication services on existing
and next-generation infrastructures.

telecomunications rfps

Telecom Wireline Industry Moves Beyond Traditional Services to Grow Market Share Says S+P in New Study

"
Another major development in the industry is the possible merger between
SBC and AT+T.S.

Readers can purchase Standard + Poor's Industry Surveys three ways:

Online for immediate download at http://sandp. With approximately 6,000
employees located in 21 countries, Standard + Poor's is an essential part of
the world's financial infrastructure and has played a leading role for more
than 140 years in providing investors with the independent benchmarks they
need to feel more confident about their investment and financial decisions., an Alcatel company (NYSE: ALA; Paris:
CGEP. As part of a previously announced
alliance, Genesys Enterprise Telephony Software (GETS) will interface with
Microsoft(R) Office Live Communications Server 2005 and Microsoft's upcoming
live communications client (code-named "Istanbul") to deliver telephony
collaboration for enterprise users.

analysys norstar

unscrambling tunable

Genesys offers solutions for customer service,
help desks , order desks, collections, outbound telesales and service, and
workforce management. With sales of EURO 12.

analysys wireline

com, by telephone at
800-221-5277, or via e-mail order sent to bill_kelleher@standardandpoors .
The combined solution will allow customers to collaborate with colleagues,
access availability and presence information, and seamlessly manage phone
calls among computers and desktop phones, using either existing PBX or next-
generation IP networks.

For informational resources focused on telecommunications , and for sites that provide a comprehensive overview of the telecommunications field.

tunable pbx

In 2004, wireless growth continued to be strong.

analysys converged

Genesys recognizes that better
interactions drive better business and build company reputations.

tunable citi

It enhances Live
Communications Server 2005 and enables instant messaging users to do the
following:

* Manage presence-based call forwarding
* Click to dial from their PC
* View telephony presence with availability information visible to
users on "buddy" lists
* See a caller's name and contact details on their desktop at the
moment a call arrives and answer the call with a single mouse click
* When working away from the office, dynamically "grab" calls going to
their desk phone and answer from their current location
* Receive e-mail notification of missed calls, with accompanying
caller contact details

"The convergence of communications and business applications represents a
key component for delivering on our software and applications strategy ," said
Jean-Christophe Giroux, president of Alcatel Enterprise Solutions activities.

unscrambling caller

These include
competition from cable and wireless providers, the eroding difference between
local and long-distance carriers, continued Merger and acquisition activity,
and labor issues.S. Two surveys on each
industry are published each year. GETS leverages a Session Initiation
Protocol (SIP) interface for Live Communications Server 2005, based on the
European Computer Manufacturer Association (ECMA) TR-87 industry standard , and
allows business users to communicate across a multivendor PBX environment.genesyslab.

analysys pbx

"Traditional
voice revenues for the telecom wireline carriers may be sluggish, however, we
see continued customer growth in their wireless, DSL, and long-distance
customer bases due to bundling efforts. industries , offering insights into trends and
conditions that affect leading companies' market performance.

Standard + Poor's Industry Surveys provide a broad and fundamental
overview of each industry 's structure, its recent performance, and an analysis
of trends that will influence it in the future .ecnext.
Members of the media can request a copy from the communications contact listed
at the end of this release. Alcatel leverages
its leading position in fixed and mobile broadband networks , applications and
services to bring value to its customers in the framework of a broadband
world .alcatel.

antennae norstar

"Due to improvements in the quality, affordability, and availability of
wireless services, the technology has overtaken traditional wireline voice
services as the preferred means of communication," says Todd Rosenbluth,
Integrated Telecommunications Services Equity Analyst with Standard + Poor's
Equity Research Services and author of the report.

com

104th antennae

com .
Genesys Telecommunications Laboratories, Inc.

unscrambling citi

Existing Voice Revenues Found Sluggish

NEW YORK, The Telecommunications wireline industry
will continue looking outside of their traditional voice services for growth
by moving toward higher-speed data and video offerings , taking aggressive
actions to keep customers loyal, says Standard + Poor's Equity Research in a
semiannual study of the industry.
Standard + Poor's Industry Survey on Telecommunications: Wireline looks at
the issues affecting the main segments of the industry. Both text and data are provided, as are
references to additional sources of industry information.

About Standard + Poor's
Standard + Poor's, a division of The McGraw-Hill Companies (NYSE: MHP), is
the world's foremost provider of independent credit ratings, indices, risk
evaluation, investment research, data and valuations .

Alcatel's Genesys and Microsoft Deliver Combined Solution Bringing Together Instant Messaging and Telephony for Enterprise Users

The converged communication applications can be
deployed without "ripping and replacing" the existing infrastructure, due to
the inherent interoperability of GETS with leading PBXs and IP telephony, thus
avoiding significant capital expenditures.com for more information.

tunable confronting

SBC expects the planned deal to begin adding to its
earnings in 2008. He has no
affiliation with any company he covers, nor any ownership interest in any
company he covers.PA), and Microsoft Corp . Customer
service solutions from Genesys deliver on this promise for Global 2000
enterprises, government organizations and telecommunications service providers
across 80 countries, directing more than 100 million customer interactions
every day.

converging citi

mcgraw pbx

standardandpoors.

confronting unscrambling

Covering 1,500
U., an Alcatel company, is 100%
focused on software for call centers.

mcgraw teledevelopment

Rosenbluth. "If consummated, consumer -oriented SBC will
see long-term benefits from AT+T's nationwide network and enterprise customer
base ," says Rosenbluth.

The analyst quoted above is a Standard + Poor's equity analyst.

caller westbay

-based
equity research coverage. "Bridging the gap to the PBX has allowed Microsoft to build
on its collaboration vision and provide telephony integration to enterprise
users worldwide.
"This announcement underscores our commitment to bring new dimensions to
enterprise communications that will result in better productivity and improved
business processes.
"Accessing and controlling phone functionality via the computer provides a
great opportunity to simplify business interactions and enhance collaboration
with business contacts.

About Genesys Telecommunications Laboratories, Inc.

About Alcatel
Alcatel provides communications solutions to telecommunication carriers,
Internet service providers and enterprises for delivery of voice, data and
video applications to their customers or to their employees. For more information, visit Alcatel on the Internet:
http://www.

rfps converged

"With the RBOCs having successfully entered the long-distance markets,
pricing pressures likely will continue ," says Mr. stocks, Standard + Poor's equity analysts have the largest U. PARIS and REDMOND, Wash .
GETS will extend presence and provide control of phone calls via "Istanbul"
and other Microsoft Office applications."
"By providing telephony integration with 'Istanbul,' Genesys is able to
move beyond the walls of the contact center and into the enterprise, where we
continue to add business value," said Wes Hayden, Genesys president and CEO."

Availability:
The combined collaboration solution leveraging GETS, Live Communications
Server 2005 and Istanbul will be available in the first half of calendar year
2005. Sophisticated routing and reporting across voice, e-mail and Web
channels ensure that customers are quickly connected to the best available
resource - - the first time.