"The expansion of our existing fixed network marks the second major contract signed with Ericsson recently," said Carlos Ramos, CEO of Enitel. "Nicaragua is experiencing a rapid change in the telecom sector, and Enitel is a key driver in the privatization and liberalization of the market. Our partnership with Ericsson, the leading telecom supplier, will enable us to build a multi-service network integrating ENGINE with our Ericsson GSM mobile system."

These networks will be interconnected using a SDH backbone and optical access transport solution as well as a microwave transmission access network also provided by Ericsson.

"We are very pleased to introduce ENGINE in Nicaragua together with Enitel," said Urban Gillström, President of Ericsson in Central America. "This not only reinforces Ericsson's position as the leading supplier of multi-service networks in Central America, but also strengthens our position as a leading mobile and broadband Internet communications supplier."

The fixed network will offer narrow and broadband services, including the POTS, ISDN, ADSL and SHDSL, with an initial capacity up to 50,000 users. The GSM network (announced on 12 July 2002) will have a capacity of 200,000 users, including services like voice and data (short message service), voicemail service, GSM Pro and prepaid platform.

"We look forward to continuing our strong partnership with Enitel, and we are proud to be a key partner in Enitel's plans to further develop telecommunications in the country," said Mats V. Otterstedt, General Manager for Ericsson Nicaragua.