Verizon Wireless First To Adopt Open-Network Policy

VERIZON WIRELESS FIRST TO ADOPT OPEN-NETWORK POLICY
[SOURCE: TelecomWeb]
Verizon Wireless, in a surprise move on Tuesday, said it is abandoning its long-standing "walled garden" policy and will allow users to connect any compatible device they wish to its network and use any application they want. The company will publish technical standards for the development community by early next year. What this means is customers no longer will have to buy phones only from Verizon Wireless or pay the carrier to use "approved" applications. Verizon's move immediately puts at least moral pressure on all competitors in the market, with potentially the most immediately challenged rival being Sprint because both Verizon and Sprint use CDMA technology. The Verizon decision would, thus, make it far easier for Sprint users to change allegiance and bring their devices with them, rather than having to buy new ones. The move also was seen as a potential indication that Verizon is planning a strong bid for additional spectrum in the forthcoming FCC auction of 700 MHz channels next January. For that auction, the FCC set aside spectrum for wireless networks that allow customers to use any mobile device, not just those blessed and/or sold by the network owner. Common wisdom is that Verizon may be bidding for that spectrum against Google, which these days has designs on the wireless world with its "Android" variant of mobile Linux, which its touting as a cellphone operating platform to be developed by members of a group it created called the Open Handset Alliance.
http://www.telecomweb.com/tnd/25811.html

* Verizon press release
http://news.vzw.com/news/2007/11/pr2007-11-27.html

* Verizon Wireless opens up network to outside devices
http://www.infoworld.com/article/07/11/27/Verizon-Wireless-opens-up-netw...

* Verizon to open cell network to all phones
http://money.cnn.com/2007/11/27/technology/verizon/index.htm?section=mon...

* Verizon Wireless opens network
http://www.reuters.com/article/technologyNews/idUSN2749533620071127

* Verizon Plans Wider Options for Cell Users
http://www.nytimes.com/2007/11/28/technology/28phone.html?ref=todayspape...

* Verizon to Open Cell Network to Others' Phones
http://online.wsj.com/article/SB119617188870905241.html?mod=todays_us_ma...

* Verizon To Open Its Wireless Network
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/27/AR200711...

* Verizon frees customers to choose phones
http://www.usatoday.com/printedition/money/20071128/1b_verizon_wireless2...

* Next cell trend lets users hold the phone
http://www.latimes.com/news/printedition/front/la-fi-lazarus28nov28,1,69...

** REACTION **

* House Commerce Committee Chairman John Dingell (D-MI): "[T]the company’s decision appears to be a step forward for consumers. I'd like to see additional carriers listen to their customers and offer a more open platform."
http://energycommerce.house.gov/Press_110/110nr129.shtml

* House Telecom Subcommittee Chairman Ed Markey (D-MA): "[T]oday’s announcement is welcome news for wireless consumers and device and application developers as it indicates that a major wireless provider is moving in the direction of greater network openness and consumer choice."
http://markey.house.gov/index.php?option=com_content&task=view&id=3201&I...

* FCC Chairman Kevin Martin: "I was pleased to hear the announcement by Verizon Wireless of its plans to introduce a new option for customers throughout the country - an option that will allow customers to use any device and to use any applications that they choose on the Verizon Wireless network."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278410A1.doc

* Public Knowledge: If other carriers don't follow the same model, then consumers will still find their phones tied to a specific technology or wireless company. Even with the announcement today, if Verizon continues to subsidize cellphones, then the adoption of the open model will be minimal absent a rapid decline in cell phone prices. We also note that Verizon alone decides what phones and applications will be acceptable to its network. It would be preferable to have a neutral third party either making the decision on acceptability for Verizon, or conducting evaluations which would be accepted by Verizon.
http://www.publicknowledge.org/node/1286

* Media Access Project: "This is surely a step in the right direction, but its shortcomings underscore the need for regulations to guarantee Americans the same rights on wireless networks that they have on landlines. Without the certainty that comes from making open platforms a right, rather than a privilege at the mercy of a provider's business plan, innovation and choice in the wireless world will continue to lag behind Europe and Asia."
http://www.mediaaccess.org/press/2007-11-27-VerizonPressRelease.pdf

* New America Foundation's Wireless Future Program: "Verizon's plan is a positive step, but FCC Chairman Martin and the other commissioners deserve the credit for making consumer choice a condition on the TV band spectrum licenses that will be auctioned early next year. This appears to be a move to head off market entry and new wireless competition from Google and other Internet companies that would result if the incumbent carriers were unwilling to meet minimal FCC consumer choice requirements."
http://www.newamerica.net/programs/wireless_future#

** Commentary **
* Why Verizon Went Open & What It Means
[Commentary] Why? 1) I think it’s because they don't want to make open network concessions on the upcoming 700 MHz auctions and 2) No more subsidizing phone purchases. What does it mean for consumers? 1) A phone with Wi-Fi doesn't need approval from Verizon and 2) Chinese handset makers can now bring $25 phones to the U.S.
http://gigaom.com/2007/11/27/what-it-means-why-verizon-went-open/

* Verizon Wireless' Neutrality 'Offer' is Neutered
[SOURCE: Network Computing, AUTHOR: Frank Bulk]
[Commentary] Verizon Wireless wants to curry consumer favor, and what it's offering with its 'Any Apps, Any Device' is really no gift at all. It's not offering anything that it isn't doing today or that's accessible to consumers.
http://www.networkcomputing.com/article/printFullArticle.jhtml;jsessioni...