Verizon Wireless’s Open Access Announcement: Impact on the M2M Industry Limited

In late November 2007, Verizon Wireless announced an open access policy to permit “any” device or application (that is CDMA-based) to run on its network. Devices will need to meet certain minimum technical specifications, which Verizon Wireless has said it will announce early in 2008, but any application would be permitted to run on top of these devices. This announcement is a sea-change from the traditional Verizon Wireless policy of requiring painstaking testing and certification of any devices that are proposed for its network and tight control over related applications. Verizon Wireless President and COO Danny Strigl explained at an investor conference that part of the benefit to Verizon Wireless is the reduction of costs, because Verizon Wireless won’t be responsible for customer service; instead, the firms that bring these applications (and customers) to the network will be responsible. While the announcement (and industry reaction) has focused on the implications for traditional handsets, in this ABI Insight we focus on a different aspect of the announcement. What is its likely impact on the M2M market?

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