Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

Verizon continues video buying spree with Intel deal

The operator plans to integrate IP-based TV services with FiOS video

Article comments

Verizon Communications has signed a deal to acquire the assets of Intel Media, developer of the OnCue Cloud TV platform, as it looks to further strengthen its video offering across mobile and fixed networks.

Telecommunications operators around the world are looking for new revenue streams as traditional income sources, including voice calls, have come under increasing pressure. The growth of online video seems to have really caught the imagination of Verizon's executives, as this is the third related acquisition since the middle of November.

The terms of the deal were not disclosed, but it is expected to close early in the first quarter, according to Verizon.

What Verizon gets is the intellectual property rights and other assets that powered Intel's OnCue Cloud TV platform. About 350 employees are also part of the deal. Once the transaction is closed, Verizon will integrate IP-based TV services with FiOS video, it said. Verizon's ultimate goal is to let subscribers watch content at any time on any type of device over both fixed and mobile networks. The operator also wants to improve search and discovery features, it said.

Prior to the Intel Media deal, Verizon also acquired EdgeCast Networks in December and the assets of upLynk in November.

With the EdgeCast acquisition, Verizon gets a content delivery network, a global network of servers that can be used to handle traffic spikes, stream content to thousands of viewers concurrently, or secure websites from attacks, according to EdgeCast.

Verizon's Digital Media Services unit will use those capabilities to further improve "ability to meet the exponential growth in online digital media content, as well as broaden its portfolio of site acceleration services for enterprises," Verizon said at the time.

The technology from upLynk simplifies the process of uploading and encoding live, linear and on-demand video content, according to Verizon.

Online video is already the biggest contributor to mobile traffic volumes, representing 25 percent of total smartphone traffic and 40 percent of total tablet traffic, according to a recent report from telecommunications equipment vendor Ericsson.

Increased smartphone use is the main driver for mobile-data traffic growth in the coming years, but users consuming more data -- again, mainly driven by video -- is adding to this. Ericsson expects data traffic to grow at a compound annual growth rate of around 45 percent between 2013 and 2019, or by a factor of 10 during the whole period.

Beyond video, operators are also showing more interest in gaming.

Earlier this month, French network operator Orange acquired a minority stake in the Japanese company G-cluster Global, as it looks to accelerate its mobile gaming push. Also, in October last year, Japanese carrier SoftBank announced that it was investing over US$1 billion in Finnish game developer Supercell.

Send news tips and comments to mikael_ricknas@idg.com



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *