PolicyBlog

A question that keeps coming up in the net neutrality debate turns around business models.   Net neutrality advocates say that “openness” on the Internet is endangered and we need regulations to protect it.  We have argued that this is not true, that there has not been a threat to the openness of the Internet and hence no need for regulation.

But what I have also pointed out in a recent blog post is that getting beyond standard, robust Internet connections, there are a range business models today for accessing the wide range of data available whether it be voice, video or some other format.  Some models are managed or provide consumers with perhaps less flexibility but often more simplicity and more protection from malware and other dangers that can be a part of the open Internet. Some people prefer the ability to configure everything themselves, use software or create content that is unique to them, and access any and all information on the Internet.  There are business models that accommodate all of these consumers.

To me, the market is becoming ever more competitive, varied and rich for the consumer.  Verizon offers more and more options for the consumer and many are far different from the business models of even the recent past.   Take the Droid cell phone that came out today.   It is based on an open platform model that allows developers to come up with a range of new apps without having to work directly with the maker of the operating system for the phone or getting approval from the operating system or the handset manufacturer.   I am not an expert on the development of apps or programming but Paul Brigner on my staff helped to pull together the information below that I think demonstrates the difference in how the Droid phone model works versus the Apple iPhone model:

This is not meant to be a criticism of the iPhone model but it includes a controlled or closed operating system platform versus the open Android platform for the Droid phone.   Reviews of the Droid have been very positive and I think this open model is going to prove to be a hit too. 

What is very interesting to me in all of this is how much has changed in our industry over the last few years.  More and more choice, flexibility and options are a part of the services we offer consumers and we are looking for innovation wherever we can find it, whether or not it is in our company.   Just look at what Verizon is doing in its various product lines:

FiOS – First television provider to open our platform to third-party developers

We now offer our “Widget Bazaar,” including Facebook and Twitter widgets.  Widgets are little applications that are displayed on your TV screen and can be accessed via your FiOS television service.  Clicking on these widgets will take you to these services running on the Internet.   Other widgets include NFL stats and Kodak photo sharing.

We are currently developing new Widget apps with third-party preferred partners.  We’re inviting feedback and comment from developers.    In the next few months Verizon will publish a Software Development Kit (SDK) for Widgets with API’s (application programming interfaces) based on a widely used open programming language called Lua.   This enables third-party developers to write programs for the FiOS TV system.   There will be a simple, streamlined authorization process and the new apps will be available to customers via Widget Bazaar.  This allows innovators to create interactive applications for the biggest, best and most underutilized screen in the house – the high-definition wide-screen television.

Wireless broadband – Leading the way to an open ecosystem for new wireless devices, applications and software

We are moving to a new era of innovation with 4G LTE deployment and the potential to embed wireless connectivity in everything – cars, appliances, buildings, roads, sensors, medical monitors and more.   To jump-start innovation, Verizon Wireless is the first in industry to open its wireless broadband platform to third-party development.  In 2007, we announced the Open Development Initiative (ODI) allowing third-party devices to connect to our current 3G network and soon-to-be-deployed 4G / LTE broadband network.    We have already certified more than 55 devices on the ODI system including an inventory management device that lets suppliers know when materials get low; smart grid technology for utilities to read meters and manage energy usage; and wireless medical chart for health care professionals to access patient records

In 2008, we held an open development conference, developed an efficient review process and released specifications for mobile device manufacturers.  We also certified two independent labs for testing 4G devices. 

In 2009, we held the Verizon Developer Community Conference in Silicon Valley for developers of mobile applications.   Our new developers program is simple and will allow for rapid approval and upload of apps. Our V CAST Apps Store will open by the end of this year.  Under the new program, we will operate under a 70/30 revenue split with developers.  They will access to our VZW billing and distribution systems as well as our network platform. 

We are also collaborating with third parties to stimulate innovation.  We formed a Joint Innovation Lab with Vodafone, SoftBank Mobile and China Mobil to accelerate the uptaeke of mobile technologies on a mass-market scale.  The first JIL initiative is to create a widget platform capable of deploying applications in more than 70 countries across North America, Asia, Europe and Africa.  We also formed the LTE Innovation Center based in Boston to research news products for LTE based 4G mobile devices.  We will open a Silicon Valley-based Innovation Center in 2010 to support developers.

Just a few years ago, none of these models or initiatives were under way.  In fact, most would have been unthinkable.    Much has changed in how we do business and how we offer value to customers.   The markets are evolving and the notion that openness is not here to stay or is somehow endangered is simply wrong.  The many models available and evolving prove it.

Developers can visit http://code.verizon.com to get more details on developing solutions across all of our platforms.