Verizon Wireless discusses "open network" requirements for developers, vendors
Verizon Wireless this morning is holding an “open development” meeting with manufacturers and developers in New York to discuss the requirements for certifying cellular phones for Verizon’s new “open network” service. Verizon has an “open development” Web site (see below).
The Wall Street Journal reports handset manufacturers may either buy airtime minutes and data usage at wholesale prices and sell them to consumers along with phones or have consumers purchase just the phones and deal with Verizon for the airtime/data plan. Verizon won’t sell these phones, but manufacturers may sell them any way they want, such as online and in retail stores.
CNET News reports consumers “will be able to choose from Verizon's existing rate plans.” That’s a bit of a surprise. I thought the airtime/data prices would be more expensive.
Consumers with these “open network” phones would deal with Verizon online, not in stores, to activate the phone, obtain billing information and receive support. Verizon will offer a “limited” toll-free 800 number, although the WSJ doesn’t report what “limited” entails.
No Verizon contracts
Subscribers will not have to sign two-year contracts with Verizon, but this means the phones could be considerably more expensive without Verizon’s handset subsidy. For example, Nokia sells a variety of unlocked GSM phones at its two retail stores (New York and Chicago) as well as online, but they are much more expensive than if offered by a cellular operator.
However, some manufacturers might be able to offer inexpensive phones, based on volume. Top-brand vendors as well as lesser known vendors are developing a variety of low-cost phones for developing nations. Perhaps such inexpensive products would appeal to people who want Verizon’s network and don’t care about advanced features.
Verizon continues to say that consumers may download any application onto these “open network” phones. This approach offers fascinating possibilities.
Update (3/24/08): I discuss those "fascinating possibilities" in my latest CMP "Internet Evolution" column about Verizon's open network conference.
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