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Verizon Wireless opens up - November 27, 2007

Don't budget the revenue just yet, but today's announcement from Verizon Wireless that it will open its network to third-part devices and applications next year is definitely good news for content owners.

The press release of the announcement is here. The Wall Street Journal's  write-up is here.

Although there are many details in which the devil may yet hide, the move adds another nudge to the accelerating collapse of wireless "walled gardens" controlled by the major carriers--a prerequisite for a robust business in mobile content. (Other steps included Apple's success in establishing its own service relationship with iPhone users; Google's introduction of its open mobile platform Android and the FCC's modest but telling commitment to openness in the 700Mhz spectrum auction.)

The critical issues for anyone looking to supply or license content for mobile devices are: 1) avoiding network gatekeepers; and 2) having as many buyers as possible looking to license content.

In the traditional wall-garden scenario, the wireless carrier acted as rent-seeking gatekeeper for anyone looking to
use its network to reach its subscribers. Whichever application developer managed to get through the gate, moreover, would then become the monopoly buyer of any content for that application.

Assuming Verizon is as good as its word, multiple application developers will now be able to create streaming and downloading applications for the Verizon Wireless network, accessible to all subscribers. That means multiple potential licensees for content owners to sell to.





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