Verizon is near an agreement to purchase Intel’s Internet-based pay-TV startup, according to Bloomberg.
A deal between Verizon and Intel could be completed as early as this week. The sale may be valued at less than $200 million, according to The Wall Street Journal, well below the chip maker’s reported asking price of $500 million.
Verizon will use Intel’s OnCue to extend its pay-TV offering beyond the geographic footprint of its FiOS fiber-optic service. OnCue is designed to provide pay-TV programming over any high-speed Internet connection, with so called Over The Top delivery.
Verizon is also interested in mobile video and has 36 million LTE subscribers.
The company plans to broadcast the February Superbowl in HDTV over their LTE network. LTE Broadcast utilizes one channel to “multicast” to hundreds (or even thousands) within the coverage of a local cell tower.
Dyle, which will deliver mobile television over broadcast television channels, uses the brain-dead ATSC-M/H standard in the United States. Like the defunct MediaFLO, it requires a special phone with a tv tuner. Resolution is low and range is limited. In contrast, LTE Broadcast works with smartphones on cellular channels. No tuner required.
LTE Broadcast requires end to end implementation of three new standards:
- eMBMS (Evolved Multimedia Broadcast Multicast Service) – a 3GPP standard, it enables mobile networks to offer broadcast/multicast services.
- HEVC (High Efficiency Video Coding/H.265) – the new video compression standard promises to halve the bandwidth required to transport video content compare to today’s leading implementation of MPEG-4 AVC.
- MPEG DASH (Dynamic Adaptive Streaming over HTTP (DASH) – simplifies and standardizes the adaptive delivery of video to consumer devices, ensuring a better quality of service, greater efficiency and introducing opportunities for monetization.
Mobile data traffic is expected to grow 15 fold by the end of 2017, driven mainly by video. LTE Broadcast enables operators to launch media services over LTE more cost/effectively.
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