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October 12, 2009
Are AT&T and Verizon Heading in Different Directions?
By Gary Kim, Contributing Editor
Though the potential trend will clarify only when a few more moves are made, it appears that AT&T and Verizon are moving in different directions in terms of mobile Web strategy. Sprint, meanwhile, seems to be taking an approach akin to that of Verizon (News - Alert).
The changes could reshape operating system market shares, strategic role of browsers and the ways "open" network platforms can lead to differentiated service experiences.
The potential shift of strategies has been brewing for some time, and perhaps the most-visible sign has been the debate about whether Verizon would embrace the Apple iPhone once AT&T (News - Alert) exclusivity ends.
The equally important, but less visible piece of the puzzle is the development relationship Google already has struck up with Sprint Nextel and Clearwire (News - Alert). As part of those efforts, the Android operating system has gotten a boost.
But AT&T might be distancing itself from Google and turning to a range of partners usually more associated with European operators, from Opera to Nokia. That would explain the rather cryptic remarks overheard at the CTIA (News - Alert) Wireless I.T. and Entertainment about Symbian "having a resurgence in the U.S. market."
That belief would be hard to explain in the absence of some major push by one of the major U.S. carriers to support Symbian-based devices and applications. Right now, the thinking seems to be that AT&T is considering such a move.
But it would likely be a mistake to characterize the shifts as merely instrumental or confined to market shares for various ecosystem participants. The more important change is the differentiated end user experiences that would be possible.
Though details are sketchy at the moment, the new Google-Verizon collaboration might lead to a distinctive set of user interfaces, applications and devices optimized for the mobile Web, and for users with different key interests.
In the new scenario, carriers would be able to compete on differentiated experience, not just unique handsets, payment models, package elements or device features.
Though one line of thinking is that "open" networks will lead to service providers becoming "dumb pipes," the new approaches aim to create differentiated and packaged experiences that have service providers acting in a more traditional role.
As Verizon seems to be positioning its Google collaboration, the service provider would create Android devices carrying the operator's brand and software portfolio, though other Android devices with less integration also would be available.
What is intriguing here is the use of third-party and open development, in conjunction with carrier packaging, to produce a flourishing of end user options. Instead of commodity-like devices with a set look, feel and function, one might see devices optimized for particular end user verticals.
Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.
Edited by Amy Tierney
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