Does open access spell doom for BREW?

Last week, when we reported on Verizon Wireless' plans to open its network to any application and any device, we hinted that Qualcomm's BREW platform, which Verizon has used for its Get It Now mobile content service, may be a loser in this new open network agenda. As you know, Verizon is Qualcomm's largest BREW customer.

Not everyone agreed with our view. In response to our request for an interview, Qualcomm issued this statement saying that it supports open networks: "Qualcomm is fully supportive of Verizon Wireless' open network, open applications' announcement. As is the case with all our global customers, we are looking forward to supporting Verizon Wireless in any way it deems appropriate for its subscribers. Operators have a choice about which open services they decide to promote and as a technology enabler, QIS's goal is to ultimately support any path our partners choose for delivering wireless data services. We're tremendously proud of the role BREW has played in the success of Verizon Wireless' Get It Now service--in terms of ARPU, application downloads, and customer satisfaction--and we expect that successful relationship to continue into the future."

I do believe that the Get It Now service will remain strong for some time because Verizon will continue to use it as the main gateway for consumers to find and purchase content. However, I maintain that in the long term, Get It Now will probably fade. As consumers get accustomed to purchasing content off-deck, there will come a time when the Get It Now service no longer holds its appeal.

With open applications and open devices, content developers will have less incentive to work with the BREW platform . One of the main incentives for developers to develop for the BREW platform was to get their content in front of Verizon Wireless.  

Of course, Verizon has had some challenges when it comes to adapting its Get It Now service to the growing demands and needs of consumers. In 2006, John Stratton, then-CMO of Verizon Wireless, spoke at the annual BREW conference in San Diego and criticized his company's Get It Now service for having a crowded deck and content stored in silos. And he talked about how Verizon was going to improve its on-deck offering as well as launch BREW Zone, an off-portal content offering sold through the VZW.com website.

One year later at the BREW 2007 conference we heard John Harrobin, senior vice president of marketing and digital media at Verizon, admit that the company hadn't delivered on all its promises, and that eliminating silos and integrating content was more difficult than they anticipated.

I suspect that this new open network, open application agenda announced by Verizon last week will have an impact on BREW and on how the mobile ecosystem in the U.S. evolves. - Sue