Linux Insider explains why they did it; it's an interesting set of business reasons.
The "walled garden" approach favored by many cell phone carriers to date appears to be crumbling fast.
Linux Insider explains why they did it; it's an interesting set of business reasons.
The "walled garden" approach favored by many cell phone carriers to date appears to be crumbling fast.
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I had some dealings with Verizon and their head of marketing in late 1999 through mid 2000. His answer to any sort of innovation was a rather smug stance which was, Since Verizon had customers why should they waste money on giving them service.
It appeared to me at the time that here was a company that had a chance because of their position in the marketplace to effect real and (for them) very profitable innovation in the telecommunications industry. Now they find themselves in a position where they are enmeshed in a variety of commoditized, increasingly low margin industries. Within a few years, handsets that do everything but wash windows will be going for $20 apiece, if that.
So, after blocking innovation for all these years, they now are forced to dance to Google's tune, much like the Recording Industry has been made to dance to Apple's.
More and more innovation is coming to wireless and mobile commerce. Over the past few years the Walled Garden strategy Verizon pursued was suicidal. Their duopoly position along with AT&T that they were banking would hand them the 700 band, collapsed the minute an innovative company stood up to them.
It is too little to late for Verizon. I expect that they will lose customers in droves as the business re-aligns. Google will skim the profits off the industry where the profits are, advertising and Verizon will wither.
It is really ashame that they misjudged where the market was going. It is not like anyone in the industry was surprised.
Let's celebrate after we see the posted rates and Ts & Cs for the service.