Business
Verizon Opens Its Network
Any device, any application sounds impressive, but skeptics see a play for new spectrum.
Executing a neat reverse-field, Verizon (NYSE: VZ) declared last week that it will throw open its cellular network to third-party devices, applications, and services. Once considered to be one of the strictest gatekeepers of its network, the No. 2 U.S. wireless carrier is now setting an example for other carriers to open their systems to outside hardware and software.
Industry observers remain skeptical, to put it mildly. Verizon will never let itself become just a dumb-pipes provider for other companies’ devices and services, they maintain, and anyone who says otherwise is either a fool or a liar. Tactically, Verizon’s move could be another maneuver on the chess board that is the FCC auction of valuable 700-MHz spectrum for wireless broadband networks, now scheduled for January. On Dec. 3, companies planning to bid must file a “short form” license application for that auction, which is seen as the last, best chance for fully open and accessible wireless broadband networks in the United States.
Former FCC chairman Reed Hundt, now a Frontline principal, sees Verizon’s new open stance as “an attempt to discourage bidding on the C-block,” the largest and most highly prized slice of 700-MHz spectrum up for sale.
With Verizon’s technical specs in hand, not only can manufacturers such as Sony Ericsson, Samsung, and LG Electronics add the necessary capabilities to allow their phones to work on Verizon’s CDMA network, but niche vendors also can produce a much smaller number of devices aimed at early adopters.
Regardless of the ulterior motives, the net effect is one less brick in the wall of carrier-dominated markets in the United States. Business travelers could get more options for wireless access via their laptops, manufacturers will be able to do more with portable consumer electronic devices, while government agencies and big utilities will be able to connect any device to the network for various tasks such as meter reading and public safety. Most important, other carriers inevitably will follow suit.
2008 looks to be a banner year for mobile professionals. Along with the release of the iPhone and Google’s Android announcement, the Great Wide Opening of Verizon Wireless marks 2007 as a transformative year for the wireless industry.
