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Lyse and IBM Continue to Innovate on Fiber Optic Broadband Solutions


IBM (NYSE: IBM) and Norwegian energy and telecom provider, Lyse, are extending their services agreement for the innovative multi-play solution to provide families in Norway and Denmark access to broadband TV, video on demand, Internet with e-mail accounts, voice over IP, and mobile telephony services, through a single high-speed fiber cable.

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, private homes will have access to Europe’s most advanced broadband services, which includes thirty-four TV channel feeds, movies on a pay-on-demand basis, Internet with up to five e-mail accounts and two voice-over-IP 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 Mbps to 100 Mbps, making it the best high speed offering to private homes in Norway.

100,000 families in Norway and Denmark have access to the multi-play solution, sold through 32 franchise partners. Most of the partners are utility services with experience in distributing electricity through the power grid, making it natural for them to establish fiber cable networks to private homes. Thirty-two partnering power companies and municipalities have signed franchising agreements with Lyse, using the same technology and system solutions, content and services, which bring down the cost for the user.

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 solutions. 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 TriplePlay package, Lyse Tele and IBM are working together on developing new innovative multi-play offerings based on High Definition TV and video on demand, Internet access, mobile telephony, and new 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, 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,” said Gundegjerde.

“This is an important prolongation of an existing business model that has been working well and to the benefit of all parties involved,” said sales director, Per Bjarte Hanstveit, of IBM Norway.

“We are looking forward to be part of the development of new solutions for the consumers, based on IBM’s innovation, competence and global experience,” said Hanstveit.

The contract was signed in October 2007.

About Lyse
Lyse is an energy and telecom company, based in Stavanger Norway. The corporation has 700 employees with a revenue of 3.5 billion NOK in 2006. Lyse has pioneered the delivery of bundled broadband services to consumers in Norway and Denmark. For more information, please visit

About IBM
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