SYDNEY, Australia -- In a move expected to drive new revenues and reduced capital and operating costs, Optus has selected Nortel Networks (NYSE:NT) (TSE:NT.) to supply next generation optical and voice networks. This five-year supply and services agreement is estimated to be worth approximately US$175 million (A$350 million). Under the terms of the agreement, Nortel Networks expects to build a 10 gigabits-per-second, dense wavelength division multiplexing (DWDM) link between Brisbane and Perth, completing national rollout of Optus' DWDM optical network. Nortel Networks will extend Optus' DWDM access into Australia's metropolitan areas, positioning the carrier to provide wholesale and business customers with new, revenue-generating services such as high-speed leased lines, managed wavelengths, Gigabit Ethernet and optical storage area networking. "This agreement positions Optus to deploy the state-of-the-art capabilities we need to continually improve services and technology for our customers," said Dr Stephen Rotheram, managing director, networks for Optus. Nortel Networks Corp. SingTel Optus Pty. Ltd.