Verizon and Google’s new friendship

Two years ago, Verizon Wireless (NYSE:VZ, NYSE:VOD) and Google (NASDAQ:GOOG) would have been the most unlikely companies to team up to design the open-access phones of the future. The two companies’ Internet philosophies were not only diametrically opposed, they were also battling it out in Washington and the FCC’s 700 MHz auction — the former trying to make the new broadband wireless airwaves open to all comers and the latter resisting such lobbying. Verizon wound up winning the spectrum, but Google won the open-access battle.

In late 2009, though Verizon has not only gotten chummy with Google, agreeing to co-develop Android handsets for VZW’s network, it has begun to sound an awful lot like its former nemesis. In the last two years, VZW has picked up the open-access banner and run with it. While many of its competitors would probably accuse of Verizon of playing lip service to regulators and consumer groups, the sheer volume of its activity in the space has been impressive, though the results have been far from concrete up to this point. It’s been very aggressive in encouraging open development on its forthcoming long-term evolution (LTE) network, announcing yesterday a collaboration with some of technologies biggest venture capitalists to fund new 4G developers.

I suppose you could say Verizon is merely capitulating to an imposed federal requirement for open access. But those open stipulations only apply to its 700 MHz spectrum and the new LTE network being built over it. It could keep the trap door on 3G as tight as it wants, yet it’s extended much of its open access activity to the EV-DO network with its Open Development Initiative. Most of the applications and devices resulting from that initiative have targeted the machine-to-machine market, but VZW said third-party handsets and embedded consumer devices are either in the labs or already certified — though Verizon isn’t spending much time publicizing devices that it isn’t directly retailing.

Of course this call could be a lot of hot air from Verizon. Despite all of the open initiatives Verizon has in the works, the types of data services you get from VZW today are largely the same as you got two years ago. With the exception of a few more smartphones, it’s still the same walled-garden application platforms and capped broadband data plans. Many of my journalist colleagues have pointed out that we’ve given Verizon the benefit of the doubt for quite some time, but we haven’t been rewarded with any results.

Tying up Google to support Android devices, however, is concrete. I’d reserve final judgment until we actually see the handsets and their service plans. If you’ll recall, Verizon committed to another open platform, the LiMo Foundation’s mobile Linux, only to have nothing come of it (though according to the foundation, Verizon Wireless is still committed to launching a LiMo phone by the end of next year). In the case of Android, Google and Verizon have promised the first handset unveiling within weeks. Most significantly, though, CEO Lowell McAdam made it very clear that this would not be any Verizon-tailored version of Android designed to keep Verizon in complete control. Rather it will be open, with every device having full access to the Android market and its third-party applications — including Google Voice.

As you may recall, Google has had some difficulty bringing its centralized unified communications platform to the mobile market. Apple (NASDAQ:AAPL) nixed the application from its iPhone App Store, and the FCC has started asking some probing questions of it and AT&T (NYSE:T) about their commitment to neutrality on the mobile Net. If Verizon were to support Google Voice on its device it wouldn’t necessarily be sacrificing its voice minutes, but it would be sacrificing some control — something most operators are loathe to do. In a few weeks time we’ll find out if VZW is doing more than just talking the talk when it comes to open access.

E-mail me at kevin.fitchard@penton.com.