STUTTGART, Germany -- IBM (NYSE: IBM) and Deutsche Telekom AG / T-Com announced today that the companies will collaborate to transform the Deutsche Telekom / T-Com fixed line network into an NGN (Next Generation Network). The agreement will include the development and management of advanced services.

This IP-based network transformation will include the entire range of Internet services and the high standards of telephony that are available today. On behalf of Deutsche Telekom / T-Com, IBM has developed unique software-based services that in combination with IBM server technology will transform Deutsche Telekom / T-Com's service offerings. As a result Deutsche Telekom fixed line customers will have a new range of services at their disposal.

"The German fixed line network delivers outstanding quality of voice and data transmission, but at present it does not yet have the integration capability that is required for convergence of services," said Matthias Hartmann, General Manager IBM Germany and head of IBM Global Business Services. "The development initiative between IBM and Deutsche Telekom AG / T-Com starts with fixed line network replacement and will move on to integrating other innovative services."

IBM Corp. (NYSE: IBM)