November 29, 2007
Verizon’s “open network” more like high priced minimum security than a jailbreak?
All of the celebration over Verizon’s open wireless network announcement yesterday may have been for not.
So soon we forget that Verizon Wireless is the the first entity to define the limits of unlimited in their terms of service. It could be that the devil is always in the details with these guys. Draw your own conclusions:
Silicon Alley Insider’s Dan Frommer was one of only a few writers who seemed to get what this announcement was really about — the injection of a per-byte billing model into consumer consciousness:
Some people think this will open the door to devices running new services, like free Internet phone service or video calling. But Verizon (VZ) has no intention of turning itself into dumb pipe. You can expect service plans for non-Verizon phones to include data-network fees based on usage — meaning those “free” calls could cost a bundle. (from Broadband Reports)
Comments on Verizon’s “open network” more like high priced minimum security than a jailbreak? »
A good observation by Mr. Frommer. However that is how VZW has things today if you subscribe to a data plan. Besides there are forces are work –
* My gut and sources figure that the VZ gang will go LTE to preserve infrastructure. That will open up the network some.
* Broad based competition will lower rates. Once the 700mhz band has been built out, smart triband phones that can use any network for transport will put a stake in the per minute charge mantra. Especially when the phones will do so based on cheapest carrier in an area.
* I find it funny that VZ thinks they don’t want to be a dumb pipe when that is what they are on the wireless side. They have done nothing to acquire or build services beyond basic support for texting. They could go into the premium services biz tomorrow but they don’t. On that score even the wireline side is attempting some content cobrokerage.
Just a feeling.
[...] November 29, 2007Jail Break!! Boss and I get into a discussion over the Fommer article. Though the article has basis in fact. [Go look at Verizon’s data plan pricing…] But my contention has always been there are more eyes on how to beat a system than there are system builders there to prevent it. Its always a labor cost equation. The builders always do it on a bid ‘cheap as’ basis. While the folks defeating the system generally do it either because they think they can or they want to put one over on The Man. But they do so almost labor free, as like in their own time. [...]