Verizon Wireless embraces open access. Now what?

A day after Verizon Wireless shocked the mobile industry by announcing [1] it will introduce open access nationwide by the end of 2008, the long-term ramifications of the move remain far from clear. While the general consensus among analysts and pundits is that Verizon's announcement essentially forces its operator rivals to follow suit, the biggest question is whether the about-face promises to transform their networks into little more than dumb pipes.

During a media briefing Tuesday morning, Verizon Wireless CEO Lowell McAdam said the company concluded it can no longer keep pace with innovation in both devices and applications, and realizes there is a growing segment of the subscriber population that wants Verizon to simply provide a platform to enable the services and devices it wishes to use. "Soon Verizon Wireless will not be able to meet every customer's needs with our specific portfolio of devices and applications," McAdam said. "What apps are downloaded to the device are the choice and the responsibility of the customer."

Of course, a majority of third-party devices on the market are designed to work over GSM/UMTS, not on the CDMA/1xEV-DO air interface technology that Verizon Wireless currently uses. No doubt the operator is seeking to galvanize handset and software development in the CDMA/EV-DO arena. While third-party content and application providers are likely to face obstacles in billing--a chore typically handled by the operator--it seems logical to assume that the freedoms Verizon promises will enable the development of independent billing systems, especially given that content providers should now enjoy a closer working relationship with handset makers. Mobile advertising efforts should also enjoy a significant boost.

One potential loser is Qualcomm's BREW development solution--in the past, it was imperative that developers seeking a spot on Verizon's deck earn BREW certification, but that stipulation would seem to no longer apply. At yesterday's briefing, Verizon said that it would allow CDMA-compatible devices with Java applications on its network.  

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