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Intel announces WiMAX chip sets, Sony will digitize its content, and Verizon gets into video

Broadband Wireless Access World #44

Santa Clara, California; Culver City, California; New York City, New York
April 18, 2005

By Marc Strassman
Reporter
Broadband Wireless Access World
MIMO World
Modern Transportation World
Unwired LA
Broadband over Power Line World
Grid World
Etopia Media News Networks

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Today, April 18, 2005, included a number of inter-related milestones in the march to a digital society.

Intel Corporation, the largest manufacturers of integrated circuits, announced the availability of chip-sets to implement the WiMAX, 802.16 protocol for the distribution of broadband wireless connectivity that can support "IP-based real-time video at increased speeds over wide distances, almost as much as 15 miles.".

Sony Pictures Entertainment (SPE) announced that it would be working with Hewlett-Packard and Ascent Media Group to digitize its entire back catalogue of films and television episodes, including a vast array of newly-acquired content that it now owns after purchasing the content assets of MGM.

Verizon announced that it would be launching its FiOS platform, which Verizon chairman and CEO Ivan Seidenberg says will offer customers an "FiOS Internet Service, which delivers speeds up to 30 Mbps (megabits per second) downstream and 5 Mbps upstream. For video, the network will deliver 100 Mbps downstream and up to 15 Mbps upstream, making FiOS the fastest interactive network being deployed in America today."

Verizon also announced that it will be offering content from General Electric's NBC Universal unit over this network.

The only bug in this scenario seems to be the possible need for Verizon to acquire video distribution franchises like those already held in most major markets by incumbent cable companies.

Mr. Seidenberg called on broadcasters to work with Verizon to "lend your persuasive voice in support of clearing away this barrier to video competition."

In its April 18, 2005, press release entitled "Verizon FiOS TV Will Offer a New Customer Experience, Seidenberg Says," Verizon said:

"Citing the requirement that Verizon obtain a franchise from local authorities to provide cable service, Seidenberg noted that, as a local telephone company, Verizon has always had a franchise to deploy and operate its networks. Now, he said, the company is being asked to obtain a second franchise to use these networks to compete in video.

"While continuing to negotiate local franchises, he said, Verizon is seeking statewide solutions in some jurisdictions as well as a federal solution to this issue.

"We ask you to lend your persuasive voice in support of clearing away this barrier to video competition and speeding the day when America’s communications companies can use our fantastic resources to offer your content and provide a true and compelling alternative to cable,” he told the broadcasters."

So while cable companies move into the market for voice services by offering voice-over-IP solutions to their subscribers, Verizon will now be moving into the video distribution market by offering content to its subscribers.

Verizon is also continuing its efforts to acquire the assets of MCI.

Can a deal for Verizon to distribute Sony's newly-minted digital riches be far away? Will WiMAX be able to offer any serious competition in the Internet access market now that Verizon plans to deliver "30 Mbps (megabits per second) downstream and 5 Mbps upstream" to the home and office and broadband wireless through EV-DO on a metropolitan scale?

Whatever your platform of choice, you'll need to stay tuned.



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