Lucent (LU) is expanding R&D activities at Lucent Technologies Optical Networks (LTON), a wholly owned subsidiary of Lucent in Shanghai, into data communications and access networks.

Located in Shanghai Chao He Jing High-Tech Development Zone, LTON is Lucent's largest optical R&D facility in the Asia Pacific region, focusing on design and development of metro optical transport system. The company's decision to expand its R&D activities in Shanghai will increase ability to deliver next-generation optical, data and access network and service solutions throughout China.

Established in April 2000 with an initial investment of US$29 million, LTON focused on design and development of metro optical transport systems, which have been widely deployed in the metro access networks of major Chinese telecom operators, including China Telecom and China Unicom, as well as networks of international operators including Deutsche Telekom and Japan's NTT.

Lucent has remained committed to the China market since its entry into China in 1985. Bell Lab branches and Lucent's multiple R&D centers in China have engaged in a number of R&D activities and basic research projects, including joint research in optical, wireless, computer technology and next-generation Internet with labs established in partnership with Chinese Academy of Science, Tsinghua University, Peking University, and Fudan University.

As an important base for R&D, manufacturing and technical support activities that serve both Chinese and international customers, Lucent China plays an increasingly pivotal role in the overall strategy of Lucent worldwide. Since 2003, Lucent has significantly increased its investment in China, enabling Lucent China to expand its R&D facilities in Beijing, Shanghai, Qingdao and Nanjing. Lucent's R&D activities in China cover a range of communications technology, including 3G mobile communications supporting CDMA and W-CDMA ( UMTS ), and IP Multimedia Subsystem ( IMS ), the core technology in network convergence.