The takeover of Velocix by Alcatel Lucent is a coup for the French-American company; I've long been an admirer of the company (disclosure: it was founded by my friend Andi Parker and is a supplier to my company, TV Everywhere), which has developed some unique IP in a 'me-too' market with its Metro product.
There's little doubt that Alcatel will turn it into a B2B player (where is should have been positioned anyway) and will leverage its relationships with the major networks to sell the core technology.
The Velocix CDN business is almost certainly not profitable, but there could be some argument for spinning it out.
Meanwhile, Dan Rayburn has issued a list of the remaining CDN players in the market.