Verizon to Open Network to Devices, Apps

By Tara Seals

In a bold move, Verizon Wireless on Tuesday announced that it is opening its network to wireless devices, software and applications by the end of 2008. Verizon has been lobbying against open access mandates in the upcoming 700MHz spectrum auction, has been known to come out swinging against net neutrality, and has been a harsh critic of open access proselytizing by Google Inc., so the announcement surprised many.

The cellco stressed that it would continue to offer its exclusive stable of devices as well as on-deck content, but that it would provide an additional option for consumers next year to bring their own apps and handsets to the network.

Consumers wont be able to buy a phone on eBay and just hook it up, however: Early in 2008 it will publish technical standards the development community can use to design products to work on the Verizon Wireless network. The carrier said any device that meets the minimum technical standard will be activated on the network. And those devices will have to be tested and approved before being given the go-ahead, leaving the door open to reject end points as the carrier sees fit.

Verizon did say the testing will take place in a $20 million facility it has ready for this purpose, and it plans to hold a conference with developers to get input on how best to facilitate the design process.

There were few details as to whether the openness will extend to laptop cards and PC-like ultra-mobile devices, but its likely that the forecasted device explosion is an impetus for Verizons move.

It has to do with the growing wave of devices that come wirelessly equipped (e.g., Internet Tablets, PCs, portable devices) that Verizon doesn’t sell but would like to at least have on its network to generate some revenues, said analyst Jack Gold, in a brief. There is no reason for them to turn away customers if they can sign them up.

Also, most 3G devices worldwide are GSM-based rather than EV-DO-based. As one of the few big EV-DO carriers in the world, Verizon may be looking to attract development to its camp, to make sure it isnt left behind in the device game. Verizon has nothing to lose, and if it can sway some vendors to offer devices for its network, it comes out ahead, said Gold.

Another spur for the surprising embrace for open access (if indeed open access is the right term, giving the testing requirements) may be a competitive one. Consider Verizon nemesis Googles recent announcement of Android and the Open Handset Alliance, and Apple Inc.s proclamation that it will open the iPhone to third party developers with an SDK due in February. The open-access mandates remain in place for the 700MHz auction. And, rival Sprint Nextel has been out in front with a bring-your-own strategy for its planned WiMAX network, while showing up at conferences to discuss the benefits of an open-access mobile Internet.

The FCC, for one, seems pleased with the development.

As I noted when we adopted open network rules for our upcoming spectrum auction, wireless customers should be able to use the wireless device of their choice and download whatever software they want onto it, said FCC Commissioner Kevin Martin, in a statement. 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. As I said at the time, I had hoped that our auction rules would ultimately encourage all of the wireless industry to adopt a more open and consumer-friendly industry approach. Todays announcement, along with the Open Handset Alliances previous announcement of an open platform capable of working on multiple networks, is a significant step towards fulfilling these goals. I am optimistic that Verizon Wirelesss commitment along with the upcoming spectrum auction will ensure an exciting new era in wireless technology for the benefit of all consumers.

Verizon Communications Inc. www.verizon.com