A year after the hype: Where is open access now?

Lynnette Luna — Mon, 20 Oct 2008 01:06:02 -0400

It was at this time last year when the whole debate over wireless open access hit a fever pitch, and Verizon Wireless made big news when it said it was going to allow devices open access to its CDMA network in the second half of 2008. Everyone appeared to be clamoring for the opportunity.

It is now the second half of 2008 and one has to ask: Where are all of the devices? During a FierceWireless interview with Anthony Lewis, Verizon's vice president of Open Development, last month, Lewis indicated two devices had been certified on the network, a SupplyNet Communications device and an inmate tracking device made by Behavior Innovations. He also mentioned a low-cost handset that was in the process of being certified.

Those aren't exactly the sexy devices that many open-access proponents had envisioned. The thought around open access has been an Android-type device capable of running applications that don't have operators' fingers all over them--with the mantra of giving consumers a choice. But few of those type of open-access devices will probably see the light of day on Verizon's CDMA network. As John Jackson at Yankee Group correctly sees it: "Who is going to go out of their way to pay $400 for an unsubsidized open-access phone when they can get a similar phone from the operator for $49? Open access could become a lot more relevant if someone figures out a way to have a similar business model to Verizon. Is Google going to figure out how to give me unlimited voice and data for a set fee on someone else's network?" As such, we're likely to see a plethora of M2M devices come under the open access initiative.

One could argue that the open device initiative becomes more relevant on Verizon's LTE network it plans to launch in 2010, but who is to say that again Verizon won't bundle devices and service plans that are much more attractive than those from third parties? How much will open access be an opportunity then?

It has become clear that even though folks like Google have pushed for open access, they also understand that they need a relationship with operators to be successful because operators will consistently hold the upper hand. It's a lot easier and more profitable for third parties to partner with operators, or invest in them, than to create a separate device, service and marketing program to run on an open pipe.

And operators aren't going to sit still and become dumb pipes either. Clearwire, which is set to merge its operations with Sprint's WiMAX business, has a vision to enable a whole host of devices and applications without Clearwire touching the process. But Ben Wolff, CEO of Clearwire, said his company is quite concerned about becoming a commodity because of this open-access strategy and will work hard to ensure that consumers like its company's applications and services better.

"The expectation is that we want to sell value-added services," Wolff said during FierceWireless' virtual event, The Future of 4G. "We have to be able to deliver services in a way that has the right to earn the customer's business. Our view is people will be able to use us just for access if they want, but our job is creating enhanced services that our customers really want

All this begs the question: How relevant will open access be going forward? --Lynnette

Verizon gets first open network device

Sue Marek — Fri, 11 Jul 2008 10:45:08 -0400

The first device to take advantage of Verizon Wireless' Open Development Initiative has been certified and is ready to deploy. SupplyNet Communications has released a battery-powered modem for machine-to-machine communications. The modem connects to a sensor that dips into large storage containers and then sends a text message to SupplyNet to report when the container is running low. The monitoring system can be used to measure many things, including diesel in diesel tanks or shortening at a food production facility.

In fact, most of the early devices that have been certified will likely be for M2M applications. Anthony Lewis, Verizon Wireless' vice president of open development, says that the company has had a few conversations with companies that plan to launch consumer cell phones on the network but he doesn't know when they will make their debut.

Verizon's Open Development Initiative was launched last November. At that time, the carrier said it would open its network to any device and any application that meets minimal technical standards.

For more:
- see this AP story

Related stories:
Verizon Wireless reveals open access detail
Verizon to release Open Development device specs

Supplynet

A year after the hype: Where is open access now?

Verizon gets first open network device