Verizon Wireless To Open Network

A number of readers are letting us know about Verizon's plans, announced today, to open their nationwide wireless network to devices that they don't sell. A NYTimes blog posting puts VZW's announcement in industry context. From the press release: "In early 2008, the company will publish the technical standards the development community will need to design products to interface with the Verizon Wireless network. Any device that meets the minimum technical standard will be activated on the network. Devices will be tested and approved in a $20 million state-of-the-art testing lab which received an additional investment this year to gear up for the anticipated new demand. Any application the customer chooses will be allowed on these devices."

Comments

Re:This seems very much unlike Verizon

[jtara]

I wonder how much the Amazon Kindle has to do with this? (The Kindle uses EVDO through Sprint to download books, and Amazon picks up the tab for the airtime.)

It seems to me like this is more oriented toward that type of specialized device, rather than simply a "bring your own phone" option.

I think Verizon may have realized that there is potentially a huge new market to be tapped, which could go to WiFi or other carriers if they don't provide the ability to use these type of devices on their network.

Re:This seems very much unlike Verizon

[a_nonamiss]

IMHO, that's untrue. My company has used Verizon for years, and they are NOT becoming more friendly towards us. They have better PR people now, but they are just as much on the lookout for "revenue leak" as they've always been. Any company that treats their customer as opponents in some sort of battle for cash is not customer friendly. A good business deal should benefit both parties involved. That's not done by screwing your customers.

Re:No

[DECS]

Well Verizon Wireless is almost entirely CDMA2000+ EVDO, while the iPhone uses GSM + EDGE. Unless Verizon rolls out a huge WiFi network, the iPhone won't be able to use Verizon's network. On the other hand, it appears that the move was pushed by the popularity of the iPhone, and the threat of Google. With Verizon locked out of 27% of the US mobile phone market within just a few months of iPhone sales*, it wants/needs as much telephony tied to CDMA2000 as possible as a counterbalance. If Google can buy up and deploy open networks on the old analog TV spectrum within a few years, that would leave Verizon's ~$5 billion new CDMA2000/EVDO networks a vast, unsalable investment that can't be monetized in the subsidy lock model of the 90s.

*iPhone Grabs 27% of US Smartphone Market

Bait and Switch

[mpapet]

The tiger can't change its stripes and I don't expect Verizon to either.

from the summary: "Devices will be tested and approved"

This is the classic strategy whereby they get bragging rights "It's wide open!!!" and yet mysteriously few, if anything will ever get on because of the details conspicuously absent from the announcement.

1. How much does testing cost?
2. How much does approval cost?
3. Once it's approved, how much is the daily/weekly/monthly tax the device/app builder pays to Verizon?

This is Extreme Marketing 101. All the hot oil you can dream up and no popcorn.

Interesting timing on that

[Solandri]

The 700 MHz spectrum auction is supposed to happen before Jan 28, 2008. Verizon's announcement says the technical specifications will be released in "early 2008". Sounds to me like it's to discourage any further mandates by the FCC on the bidding process, and to provide a disincentive for any other bit players thinking of lining up behind Google. "Oh, there's no need to mandate any more openness requirements, we're already going to do it. See, look at this announcement we made. What? Of course we're going to follow through on it. Trust us." It's pretty pathetic that I'm this cynical of Verizon's motives, but that cynicism comes from 3 years experience as a customer.

Re:No

[davester666]

It might just be me, but Verizon could totally kick start this by NOT CRIPPLING THE PHONES THEY SELL. Stop removing features the manufacturers already developed, that end-users might actually want and use, just so they have to download a ringtone from Verizon.com...