March 19, 2008
I certainly agree with Verizon CEO Lowell McAdam that mainstream consumers will be in no hurry to abandon the subsidy model. But in addition to seeing whether more sophisticated customers will shell out $200 or more to run advanced wireless devices on Verizon’s network, we have to see how Verizon will price open access before understanding the impact it will have on new or integrated devices in the market.
McAdam acknowledges that consumers won’t sign up for multiple $50 per month plans, and at Gearlog, Sascha Segan notes that Verizon might offer incremental device access for $5/month. This is the kind of scheme that Sprint has talked about for Xohm as well although Sprint has acknowledged there should be an unlimited access cap.
There are already a number of devices other than handsets that are obvious candidates to work on a high-speed wireless network — portable navigation devices, handheld gaming consoles, MP3 players/Internet radios, and more. Consumers are already buying these devices. Sure, adding WAN modems would add cost, but it’s really the high price of wireless broadband that is holding them back. Verizon needs to offer a cheap tier of service that entails either limited data or limited speed. Such pricing would go a long way toward enabling the kind of creative innovation that Dash Navigation has enabled with only a GPRS connection at its disposal.
Tags: open access, pricing, Sprint, Verizon Wireless, Xohm