Mirror, mirror, who's the most open network of all? AT&T said Thursday that not only is its network open, but also that it is "the most open wireless company in the industry" and has been for quite a while.
The statement follows Verizon Wireless' recent announcement that it was going the open-network route, and the Federal Communications Commission's recently adopted requirement that third-party devices and applications must be allowed by the winner of some of the 700-MHz spectrum being auctioned next year.
Open in this case means that a network is open to all kinds of compatible, third-party devices and nonmalicious applications, as opposed to a closed environment where the phone company sells the only available devices and apps.
Not a Change in Network
According to a story in Thursday's USA Today, Ralph de la Vega, CEO of AT&T's wireless business, is promoting the idea that the company's GSM network is open to any device. "We don't prohibit it, or even police it," he told the paper.
Some observers are noting that this is not a change in the network, but in the company's attitude toward open networks. AT&T uses a GSM network, as opposed to CDMA technology. On a GSM network, a device is given its phone number and network instructions through a SIM card. Buy a GSM device, use the right SIM card, and -- voila! -- you have a third-party device that can work on the AT&T network.
The irony is that both AT&T and Verizon Wireless initially opposed the lobbying by a Google-led alliance for more open standards in the upcoming 700-MHz auction, but now both are touting their openness.
There will be some raised eyebrows about AT&T's new positioning, however. For instance, the idea that AT&T is "the most open wireless company in the industry" will come as news to the owners of Apple's iPhones, for instance, which are locked to the AT&T network.
AT&T Rivalry with Verizon
Part of AT&T's new positioning comes from its rivalry with Verizon, noted Bill Ho, an analyst with industry research firm Current Analysis. The two companies are the No. 1 and No. 2 carriers, he said, and they "are always jockeying for position as the preeminent carrier."
Ho credited Google as pushing open networks to the forefront in its lobbying effort with the FCC and in leading the creation of the Open Handset Alliance. The Alliance recently released Android, an open-source software OS for mobile devices that Verizon and several other companies have said they will support.
If it achieves a significant installed base, Android can become another key factor in the development of an environment in the U.S. and elsewhere where consumers and businesses can mix and match their devices, applications, and carriers to a much greater degree than currently.
Ho pointed out that Google not only "changed the landscape," but also positioned itself to win, even if it loses the auction. The more openness there is in the mobile marketplace, Ho noted, the more opportunity Google will have for its applications and ads.
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