The reason most cell phones are so cheap is that
wireless carriers subsidize them so you'll sign a long-
term contract. Open access could change the
economics of the mobile phone (and mobile data)
business dramatically as the walls preventing certain
devices from working on certain networks come down.
We could also see a rapid proliferation of cell phone
models, with smaller companies becoming better able
to make headway into formerly closed phone markets.
What is it? Two years is an eternity in the cellular
world. The original iPhone was announced, introduced,
and discontinued in less than that time, yet carriers
routinely ask you to sign up for two-year contracts if
you want access to their discounted phones. (It could
be worse--in other countries, three years is normal.)
Verizon launched the first volley late last year when it
promised that "any device, any application" would soon
be allowed on its famously closed network . Meanwhile,
AT&T and T-Mobile like to note that their GSM
networks have long been "open."
When is it coming? Open access is partially here: You
can use almost any unlocked GSM handset on AT&T or
T-Mobile today, and Verizon Wireless began certifying
third-party devices for its network in July (though to
date the company has approved only two products).
But the future isn't quite so rosy, as Verizon is
dragging its feet a bit on the legal requirement that it
keep its newly acquired 700-MHz network open to other
devices, a mandate that the FCC agreed to after
substantial lobbying by Google. Some experts have
argued that the FCC provisions aren't wholly
enforceable. However, we won't really know how "open"
is defined until the new network begins rolling out, a
debut slated for 2010.
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