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Verizon's new horizon

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Verizon Communications Inc. (NYSE: VZ) certainly likes to tout its mobile network (hey, that's what old-telcos do, right?) But, this means having a closed system, which could mean less innovation.

Well, things are changing. That is, Verizon is going to loosen things up. This means that you will be able to use some non-Verizon cell phones on the Verizon network.

To get some perspective on things, I had a chance to talk to Frank Dickson, who is the chief research officer at MultiMedia Intelligence (an independent research firm that's focused on mobile technology):

"One of the key themes of 2007 has been the evolution of the handset from a dedicated device to a platform. The migration of PDAs into handsets with an open OS started the trend. Apple Inc. (Nasdaq: AAPL)'s iPhone and Google Inc. (Nasdaq: GOOG)'s Android seemed to have thrown gas on the evolution fire. The Verizon announcement seems to continue the trend, responding to consumer desires to customize their mobile experience. The evolving mobile experience goes far beyond communication but also includes entertainment and productivity. Verizon may simply be recognizing the difficulty and complexities of satisfying the needs of all the needs of niche and sub-niche needs with a standard offering.

"One of the facets of this announcement that cannot be overlooked is the movement to becoming a bandwidth or conduit provider. After all, Verizon Wireless did say, 'that it will provide customers the option to use, on its nationwide wireless network, wireless devices, software and applications offered by the company.' This announcement is certainly a small step in that direction."

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

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Last updated: July 05, 2009: 10:49 PM

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