Verizon promises to play by the 700MHz open-access rules

Google's been making all kinds of a fuss lately over what it claims are Verizon's plans to subvert the intent of the 700MHz open-access rules, but it looks like the carrier isn't interested in fighting it out (for once). Verizon issued a statement today saying that it "understood the FCC's rules," and that "of course we'll abide by those rules." Of course, that doesn't really mean anything until Big Red actually builds out a network and we see how it implements open-access -- which will take years -- but once again, it seems like Google is really the one in control of the 700MHz spectrum, even though it didn't win. Crafty!

[Lostcase @ May 9th 2008 7:35AM]

Three cheers for Google! =0)

[Buck @ May 9th 2008 7:44AM]

Anyone think verizon is just gonna sit on this and never build it out?

[Sam Zebian @ May 9th 2008 7:50AM]

Probably, I wonder when they're "open" initiatives will start...

[j_g_puff @ May 9th 2008 8:45AM]

$9.4bn is a lot to pay just for somewhere to sit.

[Technex @ May 9th 2008 7:51AM]

Google FTW!

[Randy @ May 9th 2008 7:56AM]

Yeah, they say that now, but I have a feeling that VZW will stick to the letter of the open access rules but not the spirit. Effectively, flipping the bird to Google.

They are too shady to just go along with this altruistically. I guess we'll have to wait and see....

[Mike K @ May 9th 2008 8:25AM]

We've been talking about Open Access for so long I'm actually a little fuzzy on what that "spirit" is supposed to be.

The way I understood it was that the Spectum has to be available for anyone to use any device and software/service (as long as it causes no harm). But the owner of the spectrum still gets to charge for that use right? It's not like free WiFi for everyone (or is it?).

So (if my understanding is correct) won't we have to become Verizon customers to use Open Access? I can't imagine that the rules dictate that Verizon has to let others use it for free, or else it wouldn't have been valuable.

Is my understanding WAY off base on this?

[Randy @ May 9th 2008 9:48AM]

@Mike K

Open Access means:

1. You can bring any device running any OS. As long as it's well behaved and doesn't interfere with or impede the network.

2. You can run any app on said devices as long as it doesn't interfere with or impede the network.

3. It *does not* mean free access. You have to be a VZW Customer.

[wrabbit @ May 9th 2008 9:49AM]

Yes, you still need to be Verizon customer to use that spectrum but the idea of open access means that you don't have to use their devices. You can buy any unlocked cellphone (or unlock a locked one) and use it with Verizon (someone correct me if I'm wrong).

The issue in this case is that what Verizon seemed to be doing was not allowing access to certain services for those that didn't use their devices - so you could still use the network but you couldn't do all the same things with it as Verizon customers - so it's not really 100% open.

[Mike K @ May 9th 2008 10:01AM]

Randy, wrabbit,

Thanks for the clarification, it seems I wasn't as far off as I thought. I currently do this with GSM phones on AT&T's network. Buy an unlocked phone and just swap the SIM. That way I can change my phone to my needs. (i.e. crappy phone when I go somewhere it might get damaged or avoid the two year contract crap).

Now the 700mhz spectrum has specific uses because it's powerful enough to cleanly get though walls and trees and the occasional government black helicopter hovering over your house, but since GSM carriers already allow much of the gains that Verizon may (or may not) actually deliver isn't most of this just hype for something that isn't going to be available for several years anyway?

Or have I said to much...

[fred @ May 9th 2008 8:38AM]

So Google has control and influence in a spectrum that they did not buy, but rather made sure through bidding up the price, that they can then sneak in and get open access. Verizon has to cut the check, but Google still gets to use it as if they bought it.

Is this how this works?

[Eric @ May 9th 2008 9:47AM]

No, Verizon bought spectrum that is regulated by the government and must abide by those rules. Verizon still gets to deploy what they choose and profit from the service; open access only prevents them from being discriminatory in the devices they allow to use the network.

[fred @ May 9th 2008 9:53AM]

I see.

[Nick M. @ May 9th 2008 1:55PM]

which allows Google to win by not having to cut deals with VZW to get android phones onto that network, is my guess why they care so much.

[AJ in the East Bay @ May 9th 2008 9:01AM]

Ah, Verizon and their "pinky promises"...

[waterwagen @ May 9th 2008 10:08AM]

Verizon's statement means about as much as me stating that I'm having a hotdog with relish and some sour cream and onion chips on the side. Of course they say they're going to follow the rules. Nobody announces their conniving ways in public. I don't trust any cell company one iota.

[Jack Mama @ May 9th 2008 12:40PM]

Basically Google's is bustin' balls because they are a bunch of little bitches. Not that Verizon's that great, but Google lost the auction and it's none of their damn business at this point, it's between the FCC, Verizon and their customers.

[HalfJoey @ May 9th 2008 12:56PM]

Google stated they wanted didn't care if they won the auction or not. It is Google's business because they have built a business model around open access sources and distribution of their android platform. Verizon made it everyones business when they chose to bid over that certain amount forcing open access. Google just wants to make sure Verizon doesn't try and get out of the FCC agreement. What is wrong with that?

[HalfJoey @ May 9th 2008 12:58PM]

Oops, it wont let me edit the comment.

[Carl Lumma @ May 9th 2008 1:58PM]

Nilay has misinterpreted this statement by Verizon. It's not a concession, it's a big middle finger at Google. Elsewhere in the statement they say that Google's complaint has no legal basis.

There can be no doubt that Verizon agreed to the open access rules fully intending to break them as much as possible after it won the auction. And frankly, I don't see Google being able to do much about it.

Google's in a bit of a pinch here. They need that spectrum to fulfill their plans for World domination, but they could ill-afford to get into a bidding war with the big carriers today. Had the auction taken place in a year or two, with Android devices on the market and with the continuing commoditzation of cell bandwidth (see Wired's article on the iPhone for a nice discussion of this), they would have been better positioned to bid for a win.

-Carl

[Johan S @ May 9th 2008 2:05PM]

Just because they say they will follow the rules doesn't mean they won't follow their own "interpretation" of the rules. Were people really expecting them to say "we won't follow the rules".


How is this a win for Google or anyone else besides Verizon?