TEL AVIV -- Barak 013, Israel's leading international telephony operator, has chosen a superclass softswitch solution from Nortel Networks (NYSE:NT)(TSX:NT) to upgrade its telephony network to voice over IP technology.

Barak 013 expects to be the first Israeli service provider to migrate its entire carrier telephony infrastructure to a next generation packet-based network, maintaining the same level of security and reliability it has today with its traditional circuit-switched network.

This solution will include Nortel Networks Succession Communication Server 2000 superclass softswitch and Nortel Networks Passport Packet Voice Gateway for toll quality voice. Succession Communication Server 2000 performs call control processing including centralized service delivery, routing, translation and signaling for switching voice over IP (VoIP) calls between packet gateways. This solution will enable Barak 013 to converge TDM and VoIP for both international and domestic telephony services, and is expected to help Barak 013 significantly reduce its network operating costs.

Barak 013 will be able to efficiently and dynamically route traffic to many international destinations using technologies like ISDN User Part (ISUP), H.323, and Session Initiation Protocol (SIP) while providing a foundation for delivery of new, value-rich services.

SIP will provide Barak 013 with the option to offer multimedia applications via fixed and mobile telephones, personal computers, handheld personal digital assistants (PDAs), and other devices using broadband connection technologies like Asynchronous Digital Subscriber Line (ADSL), cable and third generation (3G) cellular.

Another component of this solution is Traffic Operator Position System-IP (TOPS-IP), which will allow Barak 013 to transmit operator traffic over its IP core network to enable operators to respond to calls from IP-enabled workstations.

Nortel Networks solution will seamlessly migrate Barak 013's network from current TDM technology to a next generation VoIP infrastructure enabling hybrid mode operation.

"The implementation of Nortel Networks new system is yet another stepping stone for the company's Voice (International calls) technology center," said David Kaminitz, chief executive officer and president, Barak 013. "Using Nortel Networks solutions, Barak 013 will be able to provide its customers with advanced international call services and expand its customer product range, which includes domestic communications infrastructure."

"Since it was established, Barak 013 has based its international communication infrastructure on Nortel Networks solutions," said Sorin Lupu, president, Israel, Poland and South Eastern Europe, Nortel Networks. "Barak 013 always focuses on advanced and innovative solutions and this technology will enable it to provide international and domestic telecommunication services and new multimedia services while realizing significant savings in operating costs."

Nortel Networks Ltd.