For the past several days I've been grinding my teeth over an announcement - and the subsequent commentary - made by Verizon Wireless in regards to their future plans.  I've been meaning to write a post about it and just hadn't gotten around to it when I read a story written by one of my favorite columnists, David Pogue, about the same subject.  While he beat me to to the punch (hey, he gets paid for doing this) I still think it's important for readers of this blog to understand what it means - and doesn't mean - to the future wireless environment in the U.S.

To summarize, Verizon Wireless (VZW) announced that they were going to "open" their system, making it possible to use phones and applications built by other companies on their cellular network.  At first blush this appears to be a good thing; after all, anything that's open has to be better, right?  Well, yes, if it's truly open.  VZW's network isn't now, nor will it be after this announcement's intended consequence is put in place, be truly open.  "Open," in the best sense of the word when referring to systems, networks, etc., can be best illustrated by the way you're reading this post right now - the Internet.

Once you've got a connection to the Internet you can use whatever kind of computer, operating system, software, browser, keyboard, monitor, etc., you choose to use without having it preapproved by some higher authority.  You like Dell?  Cool - buy one of those.  HP kind of guy?  No problem, access my blog from your Pavilion.  Are you an Apple fanboy (like me) that wouldn't dream of using anything with Windows on it?  Equal rights for you, too.  That's "open."  What VZW is proposing isn't "open" because, somewhere in the fine print of their news release, it states that they will support devices that have been through their testing program.  You can put other devices on their network, or use applications that they haven't vetted, but the company won't support them.  

There's a business reason for this and I understand it - VZW can't be held responsible for every software hack, oddball phone and quirky accessory that some company in West Timbukthree decides to manufacture.  Realistically that would impractical and downright impossible - so they're going to support the ones that are submitted to them for, and pass, their testing.  

The interesting thing about this is that it ultimately could put VZW - and all of the other carriers if they follow suit, which they will almost certainly have to do - in the very position that the didn't want to ever be placed: they become a "dumb pipe."  That's industry parlance for a conduit that's used to send bits and bytes in both directions without having a lot of value added.  Think about all the various Internet Service Providers (ISPs) that you could choose from - you can connect your computer to any of them and it's just a question of price and, sometimes, the speed.  But they'll all work so you have a choice from amongst various commodities. 

The dumb pipe scenario, though certainly a hidden pothole for VZW, is important to all customers of all wireless providers going forward because it will stimulate the competition.  If VZW, even with the inevitable restrictions and pricing bumps that they'll put into it along the way, does go this route, they might then become a commodity.  If that happens then others will be forced to play along and, voila, a much more competitive environment than has existed in the U.S. before.  Imagine you being able to take your phone, with all of its contacts, photos, applications, etc., and simply switch it over to another carrier (provided, of course, that they use the same technology - either CDMA or GSM).  It's like number portability but on a much grander scale.

Number portability - the ability to transfer your phone number from one carrier to another so that you don't have to keep switching it - was resisted tooth and nail by the carriers.  Of course it would be - if you had to give up your cell phone number to make a switch to another carrier you'd be much more reluctant to change.  But now that you know you can switch carriers and take your phone number with you, you're a lot more likely to give out that number to other people, use it as your primary - or only - phone, etc.  The simple result of this was a serious bump in the number of subscribers for all carriers.  More flexibility, more customers for everyone.  That's the way it's supposed to work.   

It's not a perfect solution but it is, in my opinion, a very bold and reaching step for VZW.  It may not be ideal open network that would most benefit consumers, but it's a wedge in that doorway and, once opened, will only be opened wider, not closed... it's hard to put the toothpaste back in the tube.  

So watch VZW's continued announcements - there are many nuances to this one including what it means in regards to an upcoming auction of radio spectrum (the precious and very limited resource used by all carriers to run their businesses) and another announcement about joining an "Open Handset Alliance."  But the short stroke on it is that it's a good thing and an important step towards a true open network by one of the country's largest carriers.