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This paper describes the scalable coder - G.729.1 - which has been recently standardized by ITU-T for wideband telephony and voice over IP (VoIP) applications. G.729.1 can operate at 12 different bit rates from 32 down to 8 kbit/s with wideband quality starting at 14 kbit/s. This coder is a bitstream interoperable extension of ITU-T G.729 based on three embedded stages: narrowband cascaded CELP coding at 8 and 12 kbit/s, time-domain bandwidth extension (TDBWE) at 14 kbit/s, and split-band MDCT coding with spherical vector quantization (VQ) and pre-echo reduction from 16 to 32 kbit/s. Side information - consisting of signal class, phase, and energy - is transmitted at 12, 14 and 16 kbit/s to improve the resilience and recovery of the decoder in case of frame erasures. The quality, delay, and complexity of G.729.1 are summarized based on ITU-T results.