Verizon Wireless Praised for Plans to Open Network

Verizon Wireless, a joint-venture between Verizon Communications and Vodafone Group, announced Tuesday it plans to open its wireless network by the end of next year to third-party mobile devices and software meeting certain minimum technical standards. The move was applauded by FCC Chairman Kevin Martin and called a "great step forward" by Google CEO Eric Schmidt. Until now, wireless carriers in the U.S. have kept their networks on virtual lockdown, forcing subscribers to purchase and use selected mobile devices and software. Verizon's plans to open its network will seemingly have a limited near-term impact on the industry due to uncertainty over the availability of third-party phones meeting the company's minimum standards and the level of service to be provided. However, longer-term, a profound shift is underway, offering mobile device and software companies broader marketing opportunities, while providing end-users more freedom. In addition, Verizon's decision ahead of the FCC's much anticipated auction next year of key 700MHz spectrum reflects Google's emerging presence in the industry and its advocacy of open networks. However, struggling carrier Sprint finds itself in a precarious situation because it shares the same CDMA network technology with Verizon, meaning subscribers can more easily switch to Verizon without changing their phones. AT&T said it isn't considering a similar move, and argued it is more open than it receives credit for. Sprint and T-Mobile touted their "openness," but didn't signal plans to follow Verizon. Shares of Verizon gained 0.6% to $41.46 on Tuesday and were unchanged in late trading. Sprint fell to a multi-year low, -1.2% to $14.48 and declined 1.1% to $14.32 in the after-hours.

Sources: Press release, MarketWatch, Wall Street Journal
Commentary: Verizon Wireless: Opens to 'Any Application, Any Device' • Verizon Wireless to Open Its Network • Verizon Takes Down its Garden Walls
Stocks to watch: VZ, VOD, NOK, MOT, QCOM, RIMM, GOOG, AAPL. Competitors: T, S, DT
Earnings call transcript: Verizon Q3 2007
Related: Verizon's Opening Move and You -- WSJ

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Comments

[jvd77@ameri...:]

Very good info

2007 Dec 09 03:32 PM

[jvd77@ameri...:]

Thank You

2007 Dec 09 03:34 PM

[jvd77@ameri...:]

See you later

2007 Dec 09 03:36 PM

[jvd77@ameri...:]

O K Thats it

2007 Dec 09 03:36 PM