Suez-Lyonnaise des Eaux, parent company of French cable operator Lyonnaise Cable, has decided to go it alone in providing fixed telephony, internet access and television on its cable network, according to a report in Les Echos. The announcement puts an end to negotiations with Bouygues Telecom on Suez-Lyonnaise joining the Bouygues-STET-Veba alliance for fixed telephony service, constraining Bouygues to find another solution for local-loop access. Suez-Lyonnaise, which said it will invest approximately $350m in its network over the next five years, plans to begin a pilot service on December 8, to 200 subscribers in Annecy. Using the telephony service from Lyonnaise Cable, customers will need a modem, which can be either bought or rented. Telephone service will be part of the customer’s subscription to either internet or cable TV, and the cost of phone calls should be 10% less than current residential rates, the company said. Group president Gerard Mestrallet says the network investment will bring a 20% return, which should show on the company balance sheet in 2001.
