Verizon Wireless Details Open-Access Policy

[David Farber <dave () farber net>]

Notice, if you bring your own phone there is no contract requirement.  
Now for the other cell carriers to follow???  djf

Begin forwarded message:
From: dewayne () warpspeed com (Dewayne Hendricks)
Date: March 19, 2008 2:42:41 PM EDT
To: Dewayne-Net Technology List <xyzzy () warpspeed com>
Subject: [Dewayne-Net] Verizon Wireless Details Open-Access Policy

Verizon Wireless Details Open-Access Policy
WSJ
By AMOL SHARMA
Verizon Wireless, following through on a promise last fall to open its  
network to a wider array of mobile devices, unveiled details of how  
consumers would be able use handsets and services that the carrier  
doesn't offer through its own retail network.

Under the new policy, any company that wants to make a mobile device  
-- either a cellphone or some other product -- can bring it to market  
for Verizon's 65 million customers as long as it meets the carrier's  
minimum technical requirements, which executives said would not be  
burdensome. The device makers will be responsible for marketing and  
distributing the device on their own. They can either allow customers  
to have a direct relationship with Verizon or buy wholesale voice  
minutes and data capacity from the carrier and re-sell them to  
consumers under their own brands.

"For Verizon to participate fully in the growth of the wireless  
industry we need to partner with the inventors and entrepreneurs who  
are creating these next generation products and services," said  
Verizon Chairman and Chief Executive Ivan Seidenberg.

Verizon, which previously restricted its network only to phones it  
sold through its retail stores or those of its distribution partners,  
made the shift in response to growing demands from regulators,  
consumers and technology companies for more "openness" in the wireless  
industry. Verizon -- a joint venture of Verizon Communications Inc.  
and Vodafone Group PLC, gave the details at an "Open Development  
Conference" in New York Wednesday.

Consumers using the new devices would not be required to sign service  
contracts with Verizon. That might make the handsets more expensive,  
since typically carriers discount devices when users agree to two-year  
plans. Customers could buy the phones wherever manufacturers choose to  
offer them but they would deal with Verizon online. Customers would  
activate their Verizon accounts online, get billed online and would  
have online customer support, with additional access to a "limited"  
800 number.

"Very quick, very simple, very elegant for this customer," said Tony  
Lewis, Verizon's vice president of open development. "If there's  
something you can't find in our stores, we still want you on our  
network."

Verizon expects devices to be certified for the new open model by late  
this year. The move presents an opportunity for cellphone  
manufacturers who haven't gotten a big share of the U.S. market or  
aren't big Verizon partners. It may also crack open a door for  
software makers to create new applications without Verizon's explicit  
blessing. Supporters of open mobile networks say a range of Web-based,  
social networking and location-tracking mobile services could be made  
more widely available if carriers give up their veto over which  
products customers should be allowed to download to their phone.  
Verizon executives said customers will be able to download any  
application on the new open devices.

Verizon's move is viewed in the industry as a way to pre-empt  
regulators who have pushed for more open standards on mobile networks,  
with the backing of big technology companies like Google Inc. The  
Federal Communications Commission attached "open access" guidelines to  
some of the airwaves available at a radio spectrum auction that  
wrapped up yesterday.

Verizon was a bidder at the auction but it won't be clear whether the  
company is affected by the new rules until the FCC announces the names  
of the winners in coming days.

As momentum for openness in wireless has built, wireless companies  
have been tripping over each other to prove they offer consumers the  
greatest choice. AT&T Inc., the largest U.S. operator, says it doesn't  
need to pursue a model similar to Verizon's because it already allows  
customers to use any handset with "GSM" technology, the world's most  
common standard for cellphones.

Tuesday, the carrier announced a new Web site,www.att.com/choice, that  
gives consumers instructions on how to bring GSM handsets purchased  
out of AT&T's stores onto its network. AT&T also points to the iPhone,  
which it carries exclusively in the U.S. In recent weeks, Apple Inc.  
has opened up the device to make it easier for third party developers  
to create applications for it.

"Maximum customer choice is what real openness is all about," said  
Ralph de la Vega, president and CEO and AT&T's wireless unit.

Sprint Nextel Corp. has promised that its fourth-generation wireless  
network based on WiMax technology will follow an open device model.

Write to Amol Sharma at amol.sharma () wsj com


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