Google vs. Verizon, Who Will "Open" the Airwaves First?

Today Google announced its plans to bid on the 700MHz wireless spectrum. Earlier this week Verizon Wireless said it plans to open its wireless network and allow any compatible device and its applications to run on its network in 2008.

No matter if its Google, Verizon, or even a third company that creates an open network first, next year will likely be a watershed year for wireless devices and services to either be introduced to consumers or (if nothing else) be hyped.

For its part Verizon has announced technical standards for how its "open" network will work. So far the most likely open network scenario is a two tiered service offering from Verizon. One tier would be similar, if not identical, to what Verizon offers today. Verizon would also offer a second tier of service that would allow consumers to use a device of their choice, as long as the device is approved by Verizon. Users of the Verizon open network would pay a metered usage fee when using it, experts predict.

Meanwhile, Google is doing its best to turn the wireless-world on its head in its own way with today's spectrum announcement coupled with its previously announced mobile device strategy (aka Android OS). Both Google announcements have spurred the U.S. wireless market to move more quickly than ever before to offer an "open" wireless network that resemble something close to the concepts promoted by network neutrality advocates. Not only would consumers be able to use a variety of handsets in Google?s wireless plan, but a host of wireless devices would bloom such as cameras, music players, gaming devices, and electronic books that will take advantage of cellular networks - not just WiFi networks.

However there are a number of unanswered questions surrounding both Google's spectrum and Android announcements and Verizon's commitment to opening its network. We still don't know the capacity of the networks or what the quality of either wireless service offering will be. Available wireless bandwidth offered by either company will likely be an issue, given it is a far more finite resource in the wireless arena compared to cable, DSL, and fiber. I'd be surprised if Verizon allowed limitless wireless bandwidth usage, considering its tight restrictions today on its broadband wireless EvDO network. Verizon limits bandwidth and the types of applications that can be used on its EvDO network.

Another big issue is customer service. Consumers may be elated about open networks, but traditionally the wireless industry has one of the worst track records when it comes to consumer complaints over customer service and billing. Another question, if Google offers an ad-subsidized open network will we be willing to be profiled by Google and view ads to use it? Lastly, there is a strong possibility that anyone offering an "open" network might limit VoIP and other applications. Being able to receive and initiate calls over VoIP for free on a handset, for example, could significantly impact a wireless carrier's monthly revenue. There are early indications Android may not support VoIP.

Many of these questions will be answered early next year when someone actually owns the new 700MHz spectrum and announces its intentions. We will also know more when Verizon prices its "open" service, releases details about network capacity, and its support (or lack thereof) of third-party mobile devices and applications.

I have more faith in Google and its stated commitment to ensuring that a form of wireless network neutrality is a reality in 2008 or soon after. By owning spectrum Google keeps control of the 700MHz wireless spectrum out of the hands of the likes of Alltel, AT&T, Sprint, and Verizon. I have a gut feeling this would be a good thing.