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. | ||||||||
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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.
“By doing this, Verizon basically sticks a thumb in the eye of carriers like Sprint that have announced they will support the Android platform,” he says. “It’s a good response to what Google, Sprint and others have gotten together to do.”
Jude also believes that Verizon’s decision to open up its network to more devices is a smart way of preempting any future FCC decisions on open access by providing the commission with its own model of an open-access network that is more favorable to its interests.
Verizon says it will allow any device that meets its minimal technical standards, which it will release early next year. Stark says the company will only test devices for connectivity and that it will allow any applications to run on its networks. Additionally, Verizon hasn’t worked out a pricing plan yet, but says that it will likely be determined on a per-usage basis, rather than on a flat rate. If the company were to charge significantly more for its open-access option than for its full service, then it could effectively deter people from bringing their own devices to the Verizon network.
But even with these uncertainties, many analysts and open-access advocates see Verizon’s announcement as a sign that U.S. carriers are loosening the grip they’ve traditionally kept on wireless devices. Dan Kohn, COO of the pro-open access Linux Foundation, says that Verizon’s decision could be a watershed moment in opening up access to carrier networks and “if Verizon’s implementation follows the direction of their announcement, then we believe that Verizon will be a leader in bringing Linux-style choice to the mobile world.”
Hart, meanwhile, predicts that AT&T will likely follow suit and open up its network.
“It’s a herd mentality,” he says. “And the bottom line is, consumers want choice.”
Dylan Schiemann, CEO of Web applications developer SitePen, isn’t sure that Verizon’s network will be as open as many people are hoping, but he still thinks it’s a step in the right direction and that having open-access options for customers will become a standard industry practice.
“The carriers are at least giving the impression that they are starting to wake up and realize that a growing percentage of users want the best network and the best device,” he says. “At a minimum, the carriers are going to have to stay competitive with Google and Apple, and that’s a great thing for the end user, and for innovation in the market.”
