Verizon opens network to more cellphones
— -- Dramatically reversing a long-standing policy, Verizon Wireless on Tuesday said it will no longer restrict the types of cellphones its customers can use on its network.
Verizon customers now must choose a phone from a list approved by the No. 2 cellphone carrier. Staring next year, they'll be able to use any phone that meets quality standards.
Details will be released in early 2008. But don't expect all phones to suddenly become Verizon-friendly. Since different carriers use different technologies to power networks, phones aren't easily swapped between them. Apple's popular iPhone, built for AT&T's network, generally won't work on Verizon's network, for example.
That's one of the reasons why consumers may not benefit much from the announcement at first. "In the short term, it's a giant publicity stunt," says wireless analyst Bill Hughes at researcher In-Stat.
•More consumer choice. Verizon's open network may encourage more manufacturers, and even hobbyists, to build phones for its network. The only catch is that they must submit the phones to Verizon to verify that they meet quality standards. Verizon is building a $20 million testing lab but has not provided details about how this process will work.
"Consumers will have a little more flexibility," says wireless analyst Charles Golvin at Forrester Research. But most will probably continue to buy phones recommended by carriers, he says. That's because Verizon and others usually subsidize the cost to woo customers into lucrative service contracts. People used to paying $50 or less for a high-tech phone won't rush to spend $400, he says.
•Less regulation. Cell networks travel through public airwaves, so carriers are tightly regulated by the U.S. government. Companies that don't appear to be looking out for the public's interest run the risk of additional scrutiny, says equity analyst Albert Lin at American Technology Research.
Related Stories
ABC News Live