Intel Media Deal Helps Verizon Scale Up FiOS Mobile Content Services

By Wayne Rash  |  Posted 2014-01-21 Print this article Print

Instead of simply being a cheap provider of phone calls and data plans, it's doing what the other three companies cannot. It will use its relationships with content providers to deliver vast quantities of content that the other companies simply can't get.

In the process, Verizon has effectively linked its highly regarded FiOS television distribution system with its wireless service. While both Sprint and AT&T have content delivery services of one sort or another, Verizon seems to have been the company that has found a way to make it scale. Once the deal with Intel closes, Verizon will be able to deliver all of the content it has for the FiOS network to its wireless devices as well.

Of course, Verizon isn't planning to simply make OnCue into a wireless delivery pathway for FiOS. The company is also planning to implement IP video services that will serve to expand the reach of FiOS. Effectively the deal will allow Verizon to deliver content over the Internet to its FiOS customers, which could reduce costs and increase flexibility.

Previously, Verizon had announced two other acquisitions, EdgeCast for content delivery and UpLynk, which facilitates the uploading of video. The three acquisitions will likely put Verizon into the catbird seat as the source for content delivery and distribution over all media. Mobile phones will be only a part of what Verizon becomes. An important part, perhaps, but only a part of a broad entertainment and information delivery system that reaches from handsets to the living room.

Intel, meanwhile, announced seemingly with great glee, that it was out of the Internet TV business. The company had started up OnCue as a way to spread out its fortunes as the core processor business got soft.

The company hired Erik Huggers from the BBC's digital services to run the unit and help Intel find a way forward. Now, Huggers will join Verizon to run the OnCue business. Ironically, by focusing on the mobile hardware part of its business, Intel will enable more users to access the content network the company once owned.

"This sale also enables Intel to further align our focus and resources around advancing our broad computing product portfolio in segments ranging from the Internet-of-Things to data centers," Krzanich said in a prepared statement.

The deal gives two big companies the parts of a puzzle they both need. Intel needs to get back to making smart devices, and Verizon needs to find a way to fight a pricing game with value. As a result, both companies are growing stronger by gaining needed capabilities, while also giving each the means to focus on their core strengths.



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