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Verizon Wireless & Google Announce Open Platform Strategic Alliance, AT&T Reverses Course on Blocking Voice Over IP

ceosVerizon Wireless and Google this morning surprised the wireless mobile industry when it went far beyond a much-anticipated agreement between Verizon and Google to market smartphones using Google’s Android operating system, and instead seemed to embrace Net Neutrality for unrestricted use of online services on Verizon Wireless’ network.  Is this a consumer-friendly about face or a strategic effort to take the wind out of the sails pushing for formal adoption of Network Neutrality regulations?

Today’s announcement represents a complete reversal for Verizon Wireless, which announced opposition for wireless Net Neutrality in September.  Tom Tauke, Verizon’s executive vice president of regulatory affairs said then: “We believe that when the FCC reviews the record and looks at the facts, it will be clear that there is no current problem which justifies the risk of imposing a new set of regulations that will limit consumer choices and affect content providers, application developers, device manufacturers and network builders.”

Google and Verizon have been on opposite sides of the Net Neutrality debate for several years now.  The phone company spends millions of dollars lobbying Washington to keep Net Neutrality off its back, in direct opposition to Google’s strong advocacy for the consumer-friendly open network rules.  One might anticipate a joint webcast between the two companies would be reserved in tone at best.

It wasn’t.

In fact, Verizon Wireless CEO Lowell McAdam and Google Chairman and CEO Eric Schmidt fell all over themselves praising one another, and attacked Verizon’s nemesis AT&T.

McAdam took a shot at AT&T for the recent controversy over their decision to block Google Voice and other Voice Over IP services from working with AT&T’s wireless network.

“Either you have an open device or not. This will be open,” McAdam said.

Schmidt praised Verizon Wireless’ nationwide mobile broadband network, calling it “by far the best in the United States.”

AT&T understood the implication of the partnership between its biggest rival and the super-sized Google and announced it was reversing its decision to block Voice Over IP applications on its network.

Ralph de la Vega, chief executive of AT&T’s consumer wireless unit, said “the iPhone is an innovative device that dramatically changed the game in wireless when it was introduced just two years ago.  Today’s decision was made after evaluating our customers’ expectations and use of the device compared to dozens of others we offer.”

That’s a remarkable statement coming from a company that has routinely ignored the wishes and expectations of its iPhone customers for less expensive, higher quality, less restrictive service.

AT&T’s reversal was praised by FCC Chairman Julius Genachowski, who is pushing for adoption of Net Neutrality as part of FCC broadband policy.

“When AT&T indicated, in response to the FCC’s inquiry, that it would take another look at permitting VoIP on its 3G network I was encouraged,” Genachowski said. “I commend AT&T’s decision to open its network to VoIP. Opening wireless services to greater consumer choice will drive investment and innovation in the mobile marketplace.”

Have AT&T and Verizon suddenly realized taking a customer-friendly position of Net Neutrality is better for their corporate image?

Perhaps, but one might also consider the reversals to be part of a strategic effort to demonstrate a lack of need for Net Neutrality rules in a ‘remarkably open and free competitive wireless marketplace.’  Expect to see that line or something akin to it coming from the anti-Net Neutrality lobbying campaign within hours of today’s events.

AT&T has also spent millions on lobbying efforts in Washington to keep Net Neutrality and other telecommunications legislation at bay.  The prospect of a sudden role reversal for two of the biggest spenders on influencing public policy would be remarkable, if it actually happened for consumers’ sake.

Verizon Wireless & Google Joint Webcast — October 6, 2009 (18 minutes)
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Tim
Tim
14 years ago

“Have AT&T and Verizon suddenly realized taking a customer-friendly position of Net Neutrality is better for their corporate image?” Don’t count on it. I wish congress would stop these proprietary connections these phones use, purposely blocking the ability to put a ring tone on your phone or making it hard to do so, purposely blocking other software that might compete with the providers software such as downloading a 3rd party browser like Opera. It seems every phone I have used and had, had restrictions in place, by the provider or phone manufacturer, to block custom content or 3rd party software.… Read more »

BrionS
Editor
14 years ago

While Verizon is a major ISP, until very recently they have not been the problem that Net Neutrality deals most with. It’s been Comcast and Time Warner that – in my view – are driving the Net Neutrality push primarily due to their non-neutral and anti-competitive behaviors. It’s nice to see Verizon get buddy buddy with Google, but an “open” phone? Hardly. Is GPS enabled? Is wi-fi enabled on the device? Is the device crippled in any way as compared to the Sprint Hero or European Hero? I suspect it will be since handicapping phones is Verizon’s forte. Right now… Read more »

Jeremy
Jeremy
14 years ago

No doubt, they either tie down or totally incapacitate bluetooth and gps functions as well as wireless to force you to use their network and services as opposed to your own wireless or applications. Users that are not technically inclined to know how to use Bitpim are typically left to pay Verizon just to transfer their items to a new phone. Verizon has attempted to release new firmwares to disable Bitpim’s access. I really would like to get a new smartphone that I could use for internet access when at home or on the road when a wifi point is… Read more »

Michael Chaney
14 years ago

“…there is no current problem which justifies the risk of imposing a new set of regulations that will limit consumer choices and affect content providers, application developers, device manufacturers and network builders.”

So I’m confused. Instead of the FCC implementing rules that will in their words “limit consumer choices”, they will voluntarily abide by those same rules?!?! If they think Net Neutrality is such a horrible thing, then why on Earth would they voluntarily keep their Net neutral? They can’t say a set of rules are bad for business and then voluntarily implement them. It’s hypocrisy at its finest!

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