Android Has a New Member

Just when I and other members of the industry figured that Verizon Wireless was a write off as far as the Open Handset Alliance look what happens! –

Exactly one week after announcing it would open up its network to compatible phones and applications, Verizon Wireless on Tuesday surprised the industry once again by joining Google’s newly formed Open Handset Alliance.

The move now puts the company’s chief rival, AT&T, at an obvious disadvantage. Verizon’s decision to join the OHA was characterized by Lowell McAdam, Verizon’s CEO, as a necessary “enabler” that will let the wireless provider move towards a truly open platform.

This remarkable change of heart is Verizon’s second move towards openness in a week. Last week, the company announced that it would be opening its network to any compatible phones, not just those sold by Verizon. Some observers think that these moves will give Verizon Wireless an edge in the upcoming 700 MHz auction, and may also be a case of opting for openness before regulatory mandates eventually force it on the wireless market — whether carriers like it or not.

This modifies my perceptions a bit. Previously I considered Verizon in a structural lock against the OHA. Presumably to join as a major player in the LTE consortium. Now that assessment appears a bit premature. Which begs the question — will Verizon split their bet and sit on both camps? On the CPE that appears to be the case.

Better yet {warning major assumption ahead} has Verizon decided to partner with Google on the 700mhz auction vis a vis network? Think about it. Does Verizon need a national ‘C’ block? In reality if you look at their LATA map it covers mostly NorthEast Corridor, Segment of Florida, Segments of Texas, Segments of California, Oregon & Washington. They would be better served by bidding on the regional blocks appropriate to them.

Google provides the $$ and attempts to acquire a national ‘C’ block. Google gets its national coverage. Google turns around and brings Verizon on board. In exchange for use of those blocks useful to them Verizon provides the network management and engineering for the entire network. The big hurdle is the gag provisions of the auction. Google and Verizon would only have 2 weeks to get their respective legal teams to iron the wrinkles out prior to final offer back to the FCC.

Odd as that sounds worse matches have been made and worked. Keep in mind that VZ is pouring massive $$ into FIOS deployment, is prepared to do the same for LTE. Doing the same for a 700mhz deploy might stretch the coffers. {/warning major assumption ahead}

My question is, what does Nokia think of this?

Oh and this is a major Eggo moment for Google.

Linky.