Alcatel buys PacketVideo network unit

Further reflecting heightened activity and consolidation in the mobile content market, Alcatel said it is acquiring the network solutions unit of PacketVideo Corp., one of the first developers of server technology capable of mobile video streaming.

The deal brings PacketVideo’s pvServer, FrameTrack dynamic rate control technology and FastTrack progressive download module into Alcatel, which has been growing its product line in mobile video communications and content. The pvServer already has been deployed with Orange, T-Mobile, NTT DoCoMo and other carriers and content aggregators. The network solutions business will maintain its existing partnerships with other system vendors, including Siemens, NEC, Hewlett-Packard and IBM, according to Mike Barlow, chief operating officer of the business unit.

The Alcatel acquisition closely follows other content-driven acquisitions, such as Sun Microsystems’ purchase of Pixo and InfoSpace Mobile’s deal to buy Moviso.

PacketVideo will retain ownership of its device solutions unit and focus on OEM relationships with device makers and software companies, according to a statement from the San Diego-based firm.

Financial terms of the deal were not disclosed.