Comments on: Harsh Reality Of Verizon's Open Network http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/ Wed, 19 Jun 2013 03:43:40 +0000 hourly 1 http://wordpress.com/ By: Scholars and Rogues » Telecoms embrace the future of open wireless networks–or do they? http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186976 Thu, 06 Dec 2007 15:55:30 +0000 http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186976 [...] may attempt to introduce some price discrimination into its open network model, they’ve committed themselves so publicly to the concept that customers–and media watchdogs–won’t accept half-steps. We [...]

]]> By: Rebtel Blog » Blog Archive » Verizon: Time to walk the walk http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186975 Wed, 05 Dec 2007 20:09:53 +0000 http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186975 [...] Skeptical?  You bet!  But we’re in good company. [...]

]]> By: Verizon Drops the Open Bomb: Maybe The Old School Is Starting To Get It « SmoothSpan Blog http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186974 Wed, 05 Dec 2007 16:34:17 +0000 http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186974 [...] Daniel Berninger over on GigaOm muses about the impacts on Verizon’s business model of “any app, any device.”  For example, he says that SMS messaging is hugely profitable, but doesn’t that go away in an open world?  Yes it does, and Verizon or others will have to rethink their pricing.  This is precisely why they can’t offer it to existing contracts as I explain above. [...]

]]> By: Bob Warfield http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186973 Wed, 05 Dec 2007 16:34:15 +0000 http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186973 This is why Verizon doesn’t offer any app any device without a new contract. They have to rejigger the business model around those new contracts. This had to be done anyway. They’re way overcharging for SMS and undercharging for other things. Too many games were played and then institutionalized. Now they have to clear that slate and start over.

More on my blog:

http://smoothspan.wordpress.com/2007/11/27/verizon-drops-the-open-bomb-maybe-the-old-school-is-starting-to-get-it/

]]> By: John Thacker http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186972 Wed, 05 Dec 2007 03:45:07 +0000 http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186972 So, hasn’t the complaint recently been that US providers are “behind” Japan and Europe because of the lower use of data services? (Something that I think is at least partially explained by how mass transit users should prefer texting and data, while voice is more comfortable for drivers.)

Scott, I’m not sure I understand the newspaper analogy. The shrinking newspaper market is largely about competition from other sources, not because of “opening the newspaper network.”

A current player has an incentive to open the network if that incumbent feels that churn would overall help that incumbent. Verizon apparently feels that it has the strongest network and would benefit from switchers more than others. Phone number portability is an example of a more open network that didn’t shrink the market, since people could feel safer about getting cell phones (and dropping landlines) when they could keep their wireless number for longer and switch more easily.

]]> By: Scott Lawton (Blogcosm) http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186971 Wed, 05 Dec 2007 01:33:25 +0000 http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186971 My guess: a truly open network would shrink the market (reduce total revenue), and therefore won’t be done by one of the current players. (Examples from other markets: encyclopedias (and probably office software), newspapers.) If one of the incumbents either makes a big move into a new revenue stream, or figures out how to drastically shrink their costs (which is much more painful), then I’ll believe “any app, any device” at a reasonable price. Until then, I’m a skeptic.

My bet: Google wins the 700 MHz auction and shrinks the market.

]]> By: The real reason for Verizon’s new open network | http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186970 Tue, 04 Dec 2007 14:51:48 +0000 http://gigaom.com/2007/12/04/harsh-reality-of-verizons-open-network/#comment-186970 [...] 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 [...]

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