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Verizon Wireless Opens Network to All Devices, Software

The 'walled garden' will be no more

by Martin H. Bosworth
ConsumerAffairs.com

November 27, 2007 

Verizon, long a proponent of the "walled garden" approach that forced customers to use software and handsets approved by the company, said in a statement that any device that meets the minimum technical standard will be activated on the network.

“This is a transformation point in the 20-year history of mass market wireless devices – one which we believe will set the table for the next level of innovation and growth,” said Lowell McAdam, Verizon Wireless president and chief executive officer.

“Verizon Wireless is not changing our successful retail model, but rather adding an additional retail option for customers looking for a different wireless experience,” he said.

The company will publish the technical standards for operating on its network early in 2008, with an eye towards rolling out interoperability by the end of 2008. Any device or software application that meets the technical standards will be usable on Verizon's network, the company said.

Verizon's network will not be completely open, however.

Its phone network runs on the CDMA communications standard, whereas its largest competitor AT&T uses the more widely adopted GSM standard. GSM phones cannot work on a CDMA network, so the idea of using AT&T's iPhone on the Verizon network is still a ways off. Sprint, however, uses the CDMA network, enabling the possibility of using a phone from Sprint on the Verizon network.

Changing the game

Industry analysts claimed Verizon's sudden reversal was a response to moves made by Google to enter the wireless network space.

Google and Verizon have sparred over the upcoming auction of wireless spectrum by the FCC, which could be used to open up new networks for wireless cellphone use or broadband. Google agreed to put up $4.6 billion for the auction if the FCC agreed to support its proposed principles for "open access," including letting any device connect to any network.

Although the FCC did not meet all of Google's demands, it agreed to support the principle of open devices for the auction. Google has said it may bid in the auction, but has not officially confirmed its position.

Verizon opposed the open-access requirements so heavily that it filed a lawsuit with the FCC demanding the overturn of the open device conditions, but later dropped the suit.

Consumer pressure

Verizon may also be responding to pressure from consumers and legislators to end the "walled garden" approach to wireless networks, where consumers are forced to sign contracts for several years to get a particular phone, and until recently were punished with harsh termination fees if they wanted to switch providers.

Because phones were locked or crippled by the carriers into only working with specific providers, switching your wireless provider often meant your phone would turn into an expensive paperweight.

Verizon was the first carrier to prorate contract termination fees, and a year later changed its policy to enable customers to change plans without having to renew contracts.

All of the major carriers have since changed their policies to prorate cancellation fees and enable plan changes.

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