Verizon

Between the unprecedented success of Apple and announcement of Google’s Android, there has been a major shift in the cell phone industry. Verizon’s bold, customer centric move will likely will allow Verizon to participate in the general industry shift towards open devices and customized services on its own timeline and terms.

With this move, Verizon’s strategy is to tap into several markets which they have not earlier. Verizon is showing that they are friends with the gadget makers like portable gaming devices, home appliances, media players, auto industry especially cars, digital cameras and any device that can take advantage of the network. By allowing other devices, they could charge a fee for testing and certification of the devices and make it a repeatable process. They could also introduce pricy service plan which will be based on bandwidth use that could be a major revenue boost for Verizon.

Verizon will make it much easier and quicker for devices and software programmers to get online. Their strategy is to move towards a world where cell phone is a feature and not a product and Cellular networks act as service providers. Verizon is planning for the future when any app, any device would be the way to go. In some ways, it could also be seen as a response to Google Android mobile OS and a strategic move which could help in its bid in the Spectrum auction.

Verizon’s move will deliver on consumers’ desire for greater choice in wireless services. Consumers can now purchase devices online or at a third party retailer like Wal-Mart or Bestbuy and activate them on Verizon’s site. It is also good for enteprenuars and innovation. Verizon could be setting up a subscription model that would allow a single user to use multiple devices on the network while paying for a single subscription. Verizon basically should be planning to make the wireless network more like Internet.

Developers will enjoy a certain amount of flexibility with this move. They can sell applications in several ways: retail, in which Verizon would set prices and handle billing; wholesale, which would allow a company to set up its own service plans to become mobile virtual network operators or a custom hybrid model. This will be a win-win strategy for both Verizon and the developer community.

In the short term, several handset manufacturers may find it easier and cheaper to get their handsets