In the second push for broadband in the country with a month, Sweden’s Net Insight has signed an agreement with Swedish ISP TeleCyber for large-scale deployment of its broadband network.
TeleCyber, which calls itself a Multimedia Service Provider (MSP), owns a broadband network through which it offers low cost digital services to households, businesses and property owners. Featured services include free telephony, Internet access, software rental, video-on-demand and broadcast television.
With the DTM (dynamic synchronous transfer mode) technology from Net Insight, TeleCyber will be able to deliver higher quality connections. For the end user, this means that video streaming will not flicker, audio will be of CD quality and Internet connection speeds will run at 100 Mbps.
The main advantage of DTM is that it allows traffic to be separated according to the users’ bandwidth demands. End users are guaranteed bandwidth and quality regardless of the number of users online at the same time.
With Net Insight DTM technology, TeleCyber can provide high-quality broadband services which can’t be achieved with packet based technology, according to Fredrik Grunewald, CEO of TeleCyber.
The contract is estimated to be worth between SEK 90 and 160 million (US$10-20 million) depending on TeleCyber’s eventual subscriber base.
TeleCyber hopes to reach up to 10,000 customers in 1999 and add more than 50,000 customers each year.
TeleCyber aims to push broadband connections at low rate and then add services. Initially only users living in Stockholm will be connected because TeleCyber is currently relying on Stockholm fiber network Stokab.
TeleCyber is pricing the basic household service as low as SEK 219 (US$25) per month. This aggressive pricing will be heavy competition for other service providers in Sweden. So far, established service providers have been slow to keep up in the broadband market, with companies like TeleCyber and Framtidsfabriken, whose DTM technology is also supplied by Net Insight, making the first moves.
