Intel Media Deal Helps Verizon Scale Up FiOS Mobile Content Services
NEWS ANALYSIS: Verizon intends to use its acquisition of Intel's media unit to offer new mobile content to wireless customers after a deal that has been rumored for months.The announcement that Verizon would buy Intel's Media unit was a surprise to no one. The telecom giant had been rumored to be interested in the acquisition for some time after Intel started quietly looking for a new home for the 2-year-old unit that it built, but never used. The sale gets one more distraction out of Intel's way, allowing the chip giant to focus on hardware, while also giving Verizon the means to distribute the vast quantities of content that it has available for its FiOS network. FiOS is Verizon's bundle of Internet access, television and telephone services that is analogous to AT&T's U-verse package. The deal means that Verizon gets the intellectual property and technology for Intel's OnCue service, as well as the 350 employees now working for Intel. The OnCue system enables "Over the Top" program distribution, which allows customers to see the content anywhere, not just in Verizon's service area, according to a statement by Intel CEO Brian Krzanich that the company released with the announcement.
When it gets access to the technology, Verizon will have the network capacity and content access it needs to rapidly scale up OnCue. This as well as other recent Verizon acquisitions will allow Verizon to jump into television content delivery quickly—far more quickly than Intel could have accomplished on its own.