Tag: VZW

Why an iPhone Deal with Verizon Wireless would be Cool

Today, interesting reports surfaced (or re-surfaced?) according to which Verizon Wireless and Apple are in discussions about bringing the iPhone to the former. However, because Verizon runs on a CDMA network and Apple has only ever supported GSM, commentators reckoned that this deal might be for Verizon’s next-generation LTE network. And this is when one can start dreaming…

To recap: Verizon will be amongst the (if not The) first tier-1 network operators rolling out the next generation of wireless networks under the LTE standard (see here for more on this). Under LTE, unprecedented wireless bandwidth will be available, comparable (or exceeding) what households in Western and Far-Eastern countries have in their homes today. But then you would have it of course wherever you are (well, if the respective technology is installed).
Due to the immense speeds, a lot of people think that the first big change will be on the (computer) broadband side of things: no need for wireline access if the speeds are the same and you can actually wander around and through town and always be with your provider. Simplicity, ease of use, bliss of connected life.

When it comes to mobile handsets (previously known as phones), the iPhone is of course (and despite the heckling by its many critics) arguably the most successful multimedia device known to man (so far). To marry this with these speeds? Ah, what would await us (see here for earlier thoughts). The iPhone (if they can fix the battery life) would be perfectly suited to bring the new lush wireless life to the masses (albeit first to the more affluent ones): rich graphics, innovative inputs and the fairly unique form factor would show the opportunities off rather beautifully and could hence aid to avoid the post-3G hangover where people asked themselves why on earth they should get 3G phones: there was nothing much to do with them (other than being able to make “faster” phone calls…).
The most common uses would arguably be music and apps with the latter being even more successful than the former: it is estimated that iTunes took 6 years to record 6.8 bn downloads; the App Store did 1 bn in only 9 months (or 1.3bn p.a.), which would equal 7.8 bn in 6 years if no further growth would occur. Anyway, with 1.1 bn downloads p.a. not being too shabby either, let’s take both, so what do we get?
On the music side, it would either mean quick and high-quality downloads or, more likely (?), streamed music. The same applies to the VOD and movie segments.
On the apps side, LTE would arguably push the envelope into two directions: (1) high-end, graphically rich games, and (2) ultra-connected social games that seamlessly bridge media platforms. Now: both types had their advent on the iPhone. Speak to any number of high-end games makers, and they will tell you that their life became much easier since the iPhone was there. Look at products like EA’s Scrabble (with full Facebook integration), Playfish‘s games (coming from the other end, i.e. from Facebook to iPhone), etc and you have the foundations laid here, too. With LTE, all this becomes mass-marketable to a much higher extent. And this would be real fun!

Verizon opens up

US #2 carrier Verizon, the famed high priests of the walled garden said they would open their network to 3rd party devices, applications and services. Skeptics say this might just be a move ahead of the spectrum auction for the 700MHz range, in which Google had declared an interest, too. Commentators say it might be an attempt to discourage Google from throwing its head into the ring but they maintain that VZW will not be seen to reducing itself to a bit pipe.

However, the commitment to open its network may also mean that Google, in the wake of its Android OS promoted with the Open Handset Alliance (see here), may no longer feel that they have to spend billions of dollars to acquire the bandwidth necessary to pave the way to customers: with an open network environment, Android-based devices may very well also be running on Verizon’s network so Google may no longer need to go to the expense to providing an alternative route.

Apart from the considerations mentioned above, Verizon is under pressure to encourage device makers also from the neighbouring areas such as tablet PCs, dedicated gaming devices, etc to build hardware that works on its on EV-DO network rather than only on the UMTS-powered networks of most of its competitors. With ongoing convergence of the various screens and their inherent agnostic approach to whichever technology is being used, it is important not to fall behind as Verizon’s network might otherwise become an isolated island with only sub-par devices and less choice than with competitors.

So whichever good or bad intentions Verizon may have, it is opening the walled gardens a little bit more, and that surely is a good thing!

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