Ericsson (Stockholm) inked a contract with Telefonica SA (Madrid) to expand the carrier`s existing network capacity with a solution based on dense wavelength-division multiplexing (DWDM) technology. Telefonica will deploy an expandable 16- to 32-channel system, ERION Networker, with applications including point-to-point and self-healing rings. Ericsson also announced selection by British Telecommunications plc (London) to provide transport solutions for the carrier`s U.K. international fiber-optic backbone network. The solutions will include Ericsson`s STM-16 (2.5-Gbit/sec) add/drop multiplexers, 4/4 synchronous crossconnect systems, network management systems, and DWDM technology.