Will Verizon’s Open Network Lead to True FMC?
Posted on November 28, 2007 By: Mike, VoIP Facts: The Blog email author
Filed Under Commentary
Verizon’s move to open up its network to any device or application indicates a major shift from the walled garden approach in the U.S. cellular industry, and opens up a real possibility of attaining the much sought after concept of Fixed Mobile Convergence. As the number two carrier behind AT&T, Verizon is well positioned to gain market share and spur some badly needed innovation of device and application development in the cellular markets.
In early 2008, Verizon will lay out its minimum specifications to device manufacturers and application developers, with widespread implementation expected to begin at the end of the year.
CDMA enabled handsets from any device manufacturer will be able to access the Verizon network. In the U.S., this means that Sprint Nextel will take the biggest hit, as consumers will be able to switch to Verizon without having to buy a new handset. Sprint has been losing market share recently and has seemingly put on hold its WiMax initiative for its 3G network build out. Subscribers of AT&T and T-Mobile will not be able to switch because they are on GSM networks, but one can only think that with the increased pressure, their walled gardens will eventually come crumbling down too.
Verizon has previously resisted efforts of open access, and did not join Google’s Open Handset Alliance, an initiative to require bidders in the upcoming FCC’s auction of the 700 MHz band to employ open standards. According to Eric Shonfeld of TechCrunch, Verizon’s move positions them well to acquire a part of that spectrum, one that is particularly coveted for its ability to penetrate deep into structures.
Aside from the device compatibility issues, what does this really mean for the consumer? Could this really lead to the realization of Fixed Mobile Convergence in the cellular industry? Allowing outside applications on their network opens up the potential for users to download a VoIP app, say Skype for example, and coupled with a WiFi, or even WiMax enabled smart phone, say from Nokia, users would be able to roam seamlessly between networks.
Take the scenario of a business man driving to work while talking to his wife on a Bluetooth enabled CDMA Nokia over the Verizon Network. As he walks into the office building, the smart phone senses a WiFi network and seamlessly switches over to the company IP PBX. As the businessman travels to an emerging market in another country, he calls his wife through his Skype app over the WiFi network in his hotel room. As he walks out of the hotel on the way to dinner, the conversation is moved over to the WiMax network that encompasses the metropolitan area. As his destination is in the suburbs, the Mobile WiMax base station hands the call off to the next tower.
The result? Four networks with one phone, one of which was the Verizon network, one that charges by the minute, the rest being over non CDMA networks using much cheaper VoIP technology.
Verizon says that they will continue with their current “full service” pricing models, and that the open access model is meant to be complimentary to their current plans. If they do what they say they will, look for a flurry of new devices and application development. The open model has been practiced in Europe as well as many other countries around the world, and opening up the U.S. cellular markets make companies like Nokia salivate at the opportunity.
One thing is for sure. Verizon will certainly gain market share in the U.S., but if you plan to use their network for full broadband access, expect to pay heftily for their pipe.
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rizon’s Open Network Lead to True FMC? | VoIP-Facts.net: The Blog thanks for this post!