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Can Verizon really change its stripes?

By Brad Reed , Network World , 11/29/2007
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Verizon’s decision to give customers the option of connecting to its network through outside devices is, to say the least, a departure from its past views on open-access rules.

Essentially, Verizon’s new open-access option gives its customers the ability to connect to their network without using only a Verizon phone. In theory, open-access networks will let consumers and businesses switch carriers without having to purchase a new set of devices. Verizon’s decision to open up its network is another step toward separating carriers’ services from the devices they offer.

Traditionally, Verizon has been an opponent of open-access rules for wireless carriers. It sued the FCC earlier this year because it was displeased with the commission’s open-access requirements for about a third of the 62MHz of spectrum in the 700MHz band scheduled to be auctioned in January. But even though Verizon eventually dropped this suit, the company gave little indication that it would begin embracing open-access networks anytime in the near future.

But Verizon spokeswoman Nancy Stark says the company has been thinking about opening its network for quite some time, and it is still weighing whether it will join the Open Handset Alliance (OHA), a multinational group dedicated to promoting Google’s Android platform and open access to networks. According to Stark, the company sees that a “small but growing” number of customers want to connect to Verizon’s network without having to use a Verizon device. She adds that the company’s decision was not a reaction to rival carriers Sprint and T-Mobile joining the OHA. Verizon’s new open-access option, she says, is simply “an opportunity for growth and for meeting customer needs.”

The year in open-access wireless networks
2007 has been quite a busy year for fans of open-access networks. Things move fast in the telecom industry, and this timeline offers a quick overview.
April 26 The U.S. FCC approves a plan for auctions of wireless spectrum in the 700MHz band that would sell pieces in chunks of varying geographic sizes, including metropolitan areas, larger regional economic zones and multistate regions.
July Various industry and interest groups pitch their ideas about spectrum auction rules to the FCC. Advocacy groups, such as Public Knowledge and Consumers Union, ask the FCC to require that part of the auctioned spectrum be sold with open-access rules attached. Large broadband and wireless providers argue that placing heavy conditions on the spectrum would decrease its value and would hamper their efforts to create next-generation services.
July 31 The FCC puts open access rules on a third of the spectrum to be auctioned off, voting to require that the winner of 22MHz of spectrum allow wireless devices to connect to the network.
Sept. 14 Verizon sues the FCC over the open-access rules it placed in the spectrum auction. Verizon drops the suit on Oct. 24.
Nov. 5 Google, Sprint Nextel, Deutsche Telekom and 30 other companies band together to form the Open Handset Alliance, an industry group dedicated to promoting the use of Android, a Linux-based open platform for mobile devices, to “foster innovation on mobile devices and give consumers a far better user experience than much of what is available on today's mobile platforms.”
Nov. 27 Verizon announces it plans to give customers the option of connecting to its network through outside devices, a departure from its past position on open-access networks.
 
Grant Gross of the IDG News Service contributed to this timeline.
Click to see: Timeline of open-access networks this year

Others, however, are more skeptical. Mike Jude, a senior analyst at Nemertes Research, says Verizon is smart enough to see which way the winds are blowing and is changing accordingly. In particular, he thinks the FCC’s decision to promote open access in a portion of the 700MHz auction and Google’s open Android platform were key factors in Verizon’s decision.

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