We have seen Verizon Wireless in preparation for opening up its cellular network. But no word from AT&T along these lines. But then when customers get answers like this –

Reader Christian has an iPhone that is activated on a pre-paid GoPhone plan with AT&T. The EDGE service has stopped working properly for quite a few GoPhone-style iPhone users in California and Christian isn’t having much luck with AT&T’s customer service:

Since Saturday many iPhones in California and several other states, that are on GoPhone plans, can not access their name servers on the EDGE network any more. This causes all network related services to fail in normal operation. If the browser is fed with IP addresses instead of website names it will access the sites, but this is not a viable workaround. Like hundreds of other iPhone GoPhone users I have reported the issue repeatedly and gotten the runaround.

With inabilities like to to serve their customer base, it might be no wonder that AT&T has not announced they are opening their network. With customer service becoming more and more important to the cellular carriers as the market saturates; incidents like this will drive customers to companies like Verizon. 2008 could be a critical year and the possibility is that Verizon could eclipse AT&T in total number of customers.

Linky.

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.

There has been much speculation for the reasoning behind Verizon’s open wireless network announcement. Perhaps even a monopoly or a cartel can’t force it’s business model on consumers when they don’t want it. The consumer will always eventually find a work around to use the service the way they want to regardless of how the provider tries to steer them.

I think Om Malik has found most of the truth is Verizon’s own numbers as posted on his blog:

The wireless unit of Verizon (VZ) reported year-over-year subscriber growth of 12 percent, but a mere 5 percent rise in voice revenues. Data revenue saved the day, surging 63 percent and lifting the company to 15 percent revenue growth overall. Data revenue per user increased 43 percent, while voice revenue per user declined 5 percent — pushing data to 20 percent of revenues from 14 percent.

The same report revealed a 10 percent decline in residential access lines. The voice business of Verizon Wireless, in other words, seems to have entered the same cycle of contraction suffered by Verizon’s wireline business in recent years. Joining the open access bandwagon promises to keep data revenues growing strongly, but CEO Lowell McAdam faces some mighty difficult choices as the 80:20 ratio of voice to data revenues reverses. The legacy pricing model incorporates price discrimination that will prove awkward to preserve.

I’ve long held the belief that voice communication is something can you do with the network rather than the reverse, and that the traditional cellular market has peaked. I like finding proof I’m right.

In an world increasingly saturated with cell phones, a pay phone as a business is becoming an anchoritism. To that end AT&T is announcing that they will be exiting the pay phone biz after 130 years doing so. A sadly historic event. Mr. Bell must be shedding a tear.

Linky.

Susan Crawford a commenter over at Public Knowledge has opined a piece on Google, Verizon and the perception of a high stakes poker game of openness. I have to say that reading the piece it does make for high drama of near David and Goliath proportions if you believe the meme.

But I hate to disappoint. It is really something much more plebeian than that. Culture for one, assets for another. Let’s take the bull by the horns shall we?
More on Telegraph What?

Consumer Tip

I have to say the Boss comes up with some items that just shake the rafters. The AT&T interview is one of these. Go back and read the whole interview. Particularly the end graph.

Here’s the recommendation. If you currently have a contract that won’t expire till early 2009 then let it do so. Go month to month. That means Verizon, Helio, several other carriers. No use signing up for a contract on a device that won’t carry over into the LTE world pretty soon. That is doubly assertive with the prospect of open handsets coming to the industry.

Heh, and folks said Android might not amount to anything. Personally I think that Android/Google has been a catalyst for the Duopoly to open up their networks.

Randall Stevenson has downplayed the importance of the Verizon “open wireless network announcement” implying it’s not a matter of if, but when for his company.

We are probably one of the most open networks in the world,” Stephenson said in an interview with Forbes’ Quentin Hardy at a Churchill Club dinner in Santa Clara, Calif.

Well, not really. Consumers who buy AT&T Inc.  are wedded to the AT&T network and cannot use an iPhone or any other phone they buy in an AT&T store in the United States on another network. (from Marketwatch)

Popular Mechanics has a very interesting piece on Google’s GDrive. The core of the article is a discussion with security –

Leaving files exclusively on a virtual drive or data cloud could, eventually, usher in a new era of computing where mobile devices replace large, clunky desktops sitting in offices and homes. A virtual drive means that your cellphone, MP3 player and laptop all draw from the same data and sync with one another seamlessly. Take a photo on your camera, and it’s ready to be retrieved by your laptop to edit. Create a spreadsheet on your laptop, then add to it on your cellphone during your next train ride. The Gdrive looks like it will take a quantum leap in that direction—whether you like it or not. “

First a little background. Most readers have probably heard of Gmail. We use it here at ThirdPipe. I use it personally as well. But many are not aware that then Gmail went thru a second update that Google provided the ability to use the free space on the Gmail account for drive storage. For example if you use Firefox or Mozilla there are applets that available to utilize that space online. Google “GSpace” for the applet. GSpace as a public offering will happen in in 2008 from all accounts.
More on The Cloud, Google, the Future, PM’s View

RCR posts an article on the LTE decision for Verizon Wireless. Now the jest of the article I agree with.

But they miss a key point as to why. Vodafone has already selected LTE as their 4G solution. Voda owns 40% of Verizon Wireless. Yes Voda is not suppose to have influence but companies talk. There is strategic advantage for both firms to share R&D efforts even if it is arms length.