TMCnet News
Verizon's Open Network Not A Game-Changer For Enterprises, Yet(TechwebNews.com Via Thomson Dialog NewsEdge) Culminating a month of transformation for the U.S. wireless industry, the unveiling by Verizon Wireless of its open network program means that, for the first time, customers of the No. 2 U.S. wireless carrier will be able to choose devices, and use applications, from any vendor or developer willing to meet Verizon's specifications. Announced Wednesday to an SRO audience in a hotel ballroom in downtown Manhattan, the move is an unquestioned milestone for the wireless industry. Whether it will usher in a new era of innovation, broader choice, and lower telecom costs for enterprises is debatable. Bowing to pressure from federal regulators, customers, and powerful Web companies like Google, Verizon Wireless last November announced that it will open up its nationwide network to mobile devices, software, and applications not offered by the carrier. For the first time, wireless customers will be able to use the handset of their choice, and download any software or application to it, as long as the applications and devices are approved by Verizon. Wednesday's announcements reveal the details of this plan: device makers must submit their handsets to Verizon which will vet them either at its own $20-million testing lab or through an independent testing firm. If the devices are approved the maker can either sell the phones directly, by striking deals with third-party retailers such as Wal-Mart or Best Buy (or online outlets), or become a mini-operator by buying minutes at wholesale prices from Verizon and then re-selling them to customers. Verizon will not provide tech support for third-party devices, and there are no service contracts (or early termination fees). The "Open Development Initiative," as Verizon is calling it, coincidentally came the same day that the FCC auction of valuable wireless spectrum in the 700 MHz range concluded. Verizon is thought to be one of the primary bidders for the so-called "C block," the most highly prized slice of airwaves sold off in the auction. The results of the auction will not be disclosed until early next month. The move also follows Apple's release of the software development kit for the iPhone, allowing third-party developers to provide software for the popular touch-screen multimedia device. The details from Verizon's open initiative for software developers, and for IT pros, were less explicit. The published specs for Google's Android mobile platform, released last fall, are far more detailed and comprehensive. Verizon executives say they'll host a developers' conference later this spring to flesh out the development kit. The company also did not release pricing details for the plan, and it's not clear how easily businesses can produce versions of enterprise applications that can run on Verizon's network. What is clear is that the level of service and support that enterprises are used to from the big carriers will not be available for third-party devices and apps. "We're flexible about developing [those] business relationships after launch," said chief marketing officer Mike Lanman at the ODI event. Open networks will be "great for Verizon Wireless' bottom line," CEO Lowell McAdam told the audience in New York. When they'll start benefiting business productivity remains to be seen. Copyright ? 2008 CMP Media LLC |