Coventry-based Marconi has won a contract to supply Iceland's capital city with high-tech telecommunications equipment.

The optical fibre equipment will be capable of speeding up internet connections, providing high definition television and multimedia and will improve the quality and reliability of traditional telephone calls.

The contract, awarded by Iceland Telecom, is for Marconi's SmartphotoniX DWDM (Dense Wavelength Division Multiplexing) technology.

It is Marconi's latest success in optical networking following recent major deals with BT, Telecom Italia, Fibernet (Germany), Telfort (Netherlands), Belgacom (Belgium) and Finnet Group of Finland.

Marconi's DWDM allows a single fibre to be divided into many individual wavelengths, each with the capacity to carry the same amount of information as the original single fibre.

The technology is a cheaper way for telecommunication operators to increase capacity without digging up roads to lay new cable.

The equipment Marconi is supplying to Iceland Telecom will be able to carry 40 wavelengths per fibre. Each wavelength will be capable of carrying 2.5 Gigabits of information.

Jon Valdimarsson, head of transmission network at Iceland Telecom, said:

"Iceland Telecom's telecommunications system rates among the best in the world for transmission capacity, speed and resilience.

“This new project involving DWDM technology continues a successful relationship with Marconi, which offers the most integrated and complete technical solution for our purposes, both for the transmission devices and network management - whether for SDH or DWDM - at a competitive price."

Coventry-based Marconi Communications EMEA (Europe, Middle East, Africa and Australasia) President, Peter Brown, said:

"Marconi has supplied equipment and services to Iceland Telecom over the past 20 years and seen it grow into a position of importance in world telecommunications that belies its size.

“The new contract continues Iceland Telecom's strategy of investment in state-of-the-art but proven technology, providing a solid foundation on which to deliver broadband services, including high-speed internet access and 'rich' media content."