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From a business standpoint, the first person with enough money or a company like LG or motorola, etc etc, that creates and sells a small, generally pretty, fully functional and unlocked cdma phone, will be super rich in a day once the public all rushes to buy that phone.
November 27, 2007, 11:24 am
Verizon Wireless Says ?Bring Your Own? Device
By Saul Hansell
Tags: AT&T, Verizon Wireless, wireless
Verizon BlackBerry
Verizon Wireless has stunned the wireless world by announcing that by sometime next year it will open its network to ?any apps, any device.?
There is a lot of fine print, but the essence appears to be that Verizon will offer two flavors of service: its traditional bundle, which typically includes a subsidy for phone purchase and various other features, and ?bring your own? device service, which will be open to any device that meets ?minimum technical standards.? The company went on to say:
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.
Verizon Wireless had several reasons to get ahead on unbundled access. If it didn?t do so, T-Mobile or Sprint would surely have taken the lead. And the move helps attract devices that could compete against the Apple iPhone.
The timing most certainly relates to the coming 700-megahertz spectrum auction. The government is selling off frequencies that had been used by UHF television ? soon to be freed by the switch to digital broadcasting ? that are seen as especially useful for mobile voice and data service. Google, which has said it will bid in this auction, has called for rules that would force carriers using the spectrum to open their networks to any device. Verizon?s move today is a way to head off that sort of mandate and open up on its own terms.
Most of all, it helps tweak the spreadsheet models of future revenue so Verizon can be confident in bidding for spectrum. Simply put, the more customers it can count on?either traditional or ?bring your own? device?the more comfortable it can feel paying for bandwidth.
Interestingly, Ralph de la Vega, the chief executive of AT&T Mobility, spoke about the need for spectrum in a long interview with Engadget published yesterday.
I think the auction is very key because 700MHz is premium spectrum and our wireless company runs on spectrum. That?s the lifeblood of any wireless company. ? We have seen the growth of the use of data, in particular with devices like the iPhone. My take is that as more and more companies try to step up to that bar that Apple has established, they will produce maybe not exactly but very close to an Apple-compelling device that is going to drive more and more usage. And so, we have looked ahead and we probably don?t need that spectrum for several years, but we are bullish on the future of this business and what customers are going to do with these applications.
Mr. de la Vega also tried to portray AT&T as the network that gives customers the most options. ?I?ve never called it open access,? he said. ?I?d like to think of it as giving customers more choices about the devices and the applications that they want to run.?
With Verizon?s announcement today, AT&T and the other wireless carriers will have a lot more choices to consider.
From a business standpoint, the first person with enough money or a company like LG or motorola, etc etc, that creates and sells a small, generally pretty, fully functional and unlocked cdma phone, will be super rich in a day once the public all rushes to buy that phone.