Apple iPhone forces Verizon's hand?

[Quicksilver]

Verizon Wireless marked a big change in its game plan today, by announcing plans to open up its network to "Any App, Any Device."

While company representatives insisted during a conference this morning that Verizon has long been open to innovations and shifts in the industry, users have long recognized the nation's number-two network as being one of the most restrictive--crippling features on handsets and refusing to open itself up to unlocked devices and third-party applications, while competitors such as AT&T have proven much quicker to adapt to changes in the industry.

Between the unprecedented success of the Apple iPhone and the recent announcement of the Android Open Handset Alliance (led by Google and 33 other companies including Motorola and T-Mobile, but not, for the time being, Verizon), there's been a crucial shift in the industry.

Beginning early 2008, however, Verizon will open itself to, "[a]ny device that meets the minimum technical standard," and "[a]ny application the customer chooses will be allowed on these devices." The company has yet to announce the minimal technical standards that it will set for applicable devices and applications. This is expected to be unveiled during an upcoming developers conference. A Verizon representative stated in a press conference this morning that the minimal standards are in place solely to ensure that devices will work with the network and that applications won't have adverse effects on network users, such as the spread of malware.


Asked whether the network would be open to potential hardware manufacturers beyond the major players, Verizon CTO Dick Lynch stated, "If someone has the ability to build a phone in their basement on a breadboard, and they want to bring it us, the philosophy says, 'Have at it.'"

"I think it's important for us to realize that it's not just phones that we're talking about," Verizon CEO Lowell McAdam added. He stated that the newly opened network would have the potential to cater to new devices that could potentially utilize the network, such as gaming systems. "It doesn't matter whether it sells five or 5,000 devices," added McAdam. "This makes it possible for anyone who wants to get into the game to get into the game. It just has to meet the general connectivity standards."

While the standards and test pricing have yet to be announced, McAdam added that the cost would be lower than many are anticipating. "We would expect that the provider of the device would have some fee that they would pay. I think it's going to be surprisingly reasonable. We would expect that essentially it's for services rendered."

Verizon was quick to add, however, that the opening of its network doesn't signify a shift away from the company's focus on those devices and apps created with its participation. "Verizon Wireless will continue to provide a full-service offering, from retail stores where customers can shop, to 24/7 customer service and technical support, to an easy-to-use handset interface and optimized software applications.," the company stated. "While most Verizon Wireless customers prefer the convenience of full service, the company is listening through today's announcement to a small but growing number of customers who want another choice without full service. Both full-service and 'bring-your-own' customers will have the advantage of using America's most reliable network."

"We believe that the Verizon full-service portfolio will still be pretty attractive," added McAdam during the press conference. McAdam was quick to point out that this move doesn't mean customers will be able to use unlocked iPhones on the Verizon network. "It has to be a CDMA device. The iPhone, as it exists today, would not work on the network." The CEO also shot down a suggestion that the move signals Verizon's eagerness to join with Google and the Open Handset Alliance. "I don't think it suggests that we will or won't [join]. We've talked with Google and we continue to analyze it."

He added, however, that the move will give Verizon users the ability to reap the fruits of the alliance's labor, utilizing the new OS or any other approved OS of their choice--a list that potentially includes such prominent names as Palm and Windows Mobile.

"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," said FCC chairman Kevin Martin this morning, in a a statement issued to coincide with the announcement. "I continue to believe that more openness--at the network, device, and application level--helps foster innovation and enhances consumers' freedom and choice in purchasing wireless service."

Does this mean Verizon will open up to other phones? Yes and no... Read on http://news.yahoo.com/s/ap/20071127/...open_network_2

[E61Silver]

I think Verizon is trying to get out of the phone business.

My understanding is that they subsidize the phone sale and this way the won't have to. I also think that T-Mobile and ATT have newer phones and this a way for Verizon to compete.

[Quicksilver]

Hmmmm let see if i understand this.

First you say "I think Verizon is trying to get out of the phone business."

Then you say "I also think that T-Mobile and ATT have newer phones and this a way for Verizon to compete."

Why would they want to compete if their trying to get out of the business?

[Meiac09]

Originally Posted by Quicksilver

First you say "I think Verizon is trying to get out of the phone business."

Then you say "I also think that T-Mobile and ATT have newer phones and this a way for Verizon to compete."

Why would they want to compete if their trying to get out of the business?

verizon has been selling off their landlines though...

[LeMansX5]

If Apple can only make it work with Exchange, they can tap on BB's market share.