JAKARTA, Indonesia -- PT Bakrie Telecom, one of Indonesia's leading providers of fixed wireless voice and data services, is significantly boosting the capacity and transmission capabilities of its wireless network with new radio access, switching and optical solutions from Nortel(x) (NYSE/TSX: NT).

The increased capacity of the CDMA2000 1X network, serving Greater Jakarta and 15 cities in West Java and Banten province, will position Bakrie to meet escalating subscriber demand for the voice and fixed wireless broadband Internet, data and fax services it provides via its 'Esia' brand.

"We are currently experiencing 55% growth within one quarter in 2006 and expect to grow this base to approximately 1.35 million subscribers during 2006, more than double last year's total," said AG Rao, Chief Technical Officer, PT Bakrie Telecom. "Esia is known as a market 'mover and shaker' in Indonesia, and we look to Nortel to support our continuing growth with highly secure and reliable world-class technology that keeps pace with the changing needs of the Indonesian market."

"Nortel is strongly committed to supporting Bakrie Telecom's evolution and delivering the solutions that enable it to bring substantial added value and communications innovation to its residential and business customers," said James Demers, vice president, ASEAN, Nortel. "We have a highly successful and long-standing relationship with Bakrie, having built its original CDMA network in 2002 and implemented a major upgrade in 2005."

The Nortel solution for Bakrie Telecom consists of new CDMA Metro Cell Base Transceiver Stations (BTS) to enable cost-effective network growth and seamless, investment-protecting evolution, via a card upgrade, to Nortel's third generation (3G) 1xEV-DO CDMA infrastructure. At the network core, Bakrie is deploying Nortel's flexible DMS-MTX Switching Platform to enable subscribers to receive dependable, continuous service.

Nortel Networks Ltd.