Lyse and IBM extend broadband services agreement

DECEMBER 3, 2007 -- IBM and Norwegian energy and telecom provider Lyse are extending their services agreement for the optical provision of triple-play and mobile services to families in Norway and Denmark.

DECEMBER 3, 2007 -- IBM (search for IBM) and Norwegian energy and telecom provider Lyse (search for Lyse) are extending their services agreement for the optical provision of triple-play and mobile services to families in Norway and Denmark.

The value of the new contract is 100 million NOK over a one-year period, and it extends the original 100 million NOK deal signed in 2005.

For EUR 100 per month, franchise partners will offer private homes access to broadband services that include 34 TV channel feeds, movies on a pay-on-demand basis, Internet with up to five e-mail accounts, and two VoIP lines, in addition to mobile telephony services. For an additional fee, the number of TV channels may be doubled, and the fiber connection bandwith increased from 10 to 100 Mbits/sec. The services are available to 100,000 families in Norway and Denmark, according to the two companies.

Most of the 32 franchise partners are utilities; they have signed franchising agreements with Lyse to use the same technology and systems, content, and services.

Lyse and IBM have worked together for several years to develop this multi-play concept, which is now called Altibox. For local projects, IBM is the main contractor, providing project management, advice and consulting services in the planning stage, and business plans and technical assistance during implementation. IBM is implementing a fiber-optic network based on Cisco core networking products. Part of the agreement also includes system integration based on open standards provided by IBM Global Technology Services.

To extend the offerings to the original triple-play package, Lyse Tele and IBM are working together on developing new offerings based on HDTV and video on demand, Internet access, mobile telephony, and intelligent home services, which include alarm and meter management.

"IBM provides access to top technological competency and business knowledge, which is very important both to Lyse Tele and to our partners. Our market share is rapidly increasing and with 32 partners in Norway and Denmark, 100,000 existing customers and more signing up by the number [sic], we need partners who are available for the users, who have the capacity and experience, and with the necessary business understanding and competency to be able to innovate and develop the concept further," said managing director of Lyse Tele, Eirik Gundegjerde.

"The agreement with IBM is an extension of our successful collaboration to further develop and commercialize the best fiber-optic broadband solution in Europe, based on open standards and technology for the future," he added.

The contract was signed in October 2007.

Visit Lyse

Visit IBM

More in Market Research