Surprised and skeptical is the reaction everyone has this morning…our coverage continues on the reaction to Verizon (NYSE: VZ) Wireless move announced this morning:
—Om Malik: No clarity on what the real bandwidth limitations are and what kind of quality of service Verizon will impose on the network. Will they raise similar arguments to the ones they have been making with regards to network neutrality?
—BroadvbandReports: Implementation is key, and Verizon’s track record on this front is poor. How sincere Verizon really is about an open network will depend on the price of the service, platform specifics and the fine print (caps, etc.). Whether a genuine paradigm shift or a public relations ploy aimed at beating back open-access critics, it’s clear that Verizon is feeling the heat because of Google.
—SIA: 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.
—Larry Dignan, ZDNet: Simply put, Verizon Wireless is really backing up claims that mobile access is all about the network. The network becomes the big selling point going forward. And if developers flock to the Verizon network the company could maintain its momentum.
—Tracy Ford, RCR: Do carriers need to change in this dynamic universe? Obviously, yes, to some degree. However, the key word in that phrase is degree. The carrier owns the network—owns it and paid billions of dollars for it and multimillions of dollars every year to maintain it—and you can’t discount that.
—News.com: Gigi B. Sohn, president and co-founder of consumer group Public Knowledge, said in statement that while Verizon’s announcement is cause for “cautious optimism,” it also is “very limited. If other carriers don’t follow the same model, then consumers will still find their phones tied to a specific technology or wireless company. Until they do, an iPhone will still be useless on any network but AT&T’s. In order for an open network to become a reality, all carriers will have to participate.”
—Reuters: The move could lessen the need for Google (NSDQ: GOOG) to bid in the upcoming wireless airwaves auction, said Banc of America analyst David Barden in a note to clients. “In this instance, we see Google’s wide partnerships, and now the ability to put a future Google-powered device on the Verizon network, as diluting any economic incentive for Google to be a substantial spectrum auction competitor,” Barden said.
—Harold Feld, SVP of the Media Access Project: “Verizon’s plan still doesn’t guarantee access for all devices, and it is uncertain how much Verizon may charge customers for the right to use their own equipment. Without the certainty that comes from making open platforms a right, rather than a privilege at the mercy of a provider’s business plan, innovation and choice in the wireless world will continue to lag behind Europe and Asia.”