Debating the meaning of open
At CTIA, CEOs tackled the philosophy and business implications of open access.
Wireless operators launched plenty of their own services at CTIA Wireless I.T. & Entertainment, but the central theme of the opening keynotes was how their networks could be used to launch others' services. Open access has become a big issue. All major operators have adopted some form of open-network or open-application plan, but the exact definition of open access is still up for debate.
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Is open access just flexibility in allowing new apps and devices, or does it upend the traditional device business model? Does it require opening networks to all comers, or does it only necessitate an open-platform operating system (OS) to support new apps? Opinions varied from Sprint CEO Dan Hesse's “Knock yourself out — the entire Internet is yours” catch-all, to the more cautious approach of Robert Dotson, CEO of T-Mobile, and Lowell McAdam, CEO of Verizon Wireless, that views open access as supplementary to carrier service.
Even on that point, Dotson and McAdam differed. Instead of supporting any device — which Dotson said T-Mobile does through SIM card plans — T-Mobile would use the Android OS to support any app on its phones. Meanwhile, Verizon's plan lies in the network, opening it to third-party vendors through a development certification program. Though technically vastly different approaches, both seem to share the same goal: to create a channel of innovation outside of the huge apparatus of the carrier to support the growing demand for new services.
Ultimately, both believe the best mobile experience will be shared between carrier and customer, not a third party. Dotson noted the 30% of his subscribers using their own devices with a T-Mobile SIM card. He said their experiences are less than optimal, as certain apps aren't configured for T-Mobile's network.
“If you look at unfettered access in an open world, all of us would agree you have a poor experience at the end of the day,” Dotson said. “Innovation is most productive when you have some control over it.”
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© 2012 Penton Media Inc.
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