Light Reading

Verizon Wireless: Rise of the Machines

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor
9/15/2008
50%
50%

The scope of Verizon Wireless 's "open access" network project is finally becoming clear, and it won't -- initially at least -- have much to do with us puny humans. In fact, 90 percent of the devices that are in the process of certification are actually focused on machine-to-machine (M2M) communication.

Machine-to-machine communication generally involves a wide array of sensors, tracking devices, temperature monitors, and other distinctly non-sexy gizmos. In fact, Tony Lewis, Verizon's VP of open development, tells Unstrung that the first two devices that have been certified for open use over Verizon's CDMA wireless network are a storage tank-monitoring device from SupplyNet Communications and a prisoner-tracking electronic ankle bracelet.

This will be followed by a wireless router for the insurance industry and a $69 speech and texting device. Lewis, speaking at the CTIA show last week, noted that this neatly reflected the early devices that are coming up for certification under the open access plans.

"Ninety percent of them are M2M," Lewis said. "The other 10 percent are low-cost handsets and PDAs." (See Where Is Verizon's Open Access?, Verizon Tears Down the 'Walled Garden' and 'Open Access' Gets Closer.)

So why the sudden rise of machine-to-machine for Verizon? "The promise of machine talking to machine was always there, but the question for vendors was 'what network' and how to get on it quickly and cheaply," notes Lewis.

He claims that Verizon's open network plan now offers a "low-cost, low touch" model that appeals to vendors that are looking at applications that require straightforward automation and communication. "I have guaranteed those folks they will be on my network within four weeks," Lewis notes, reflecting on how fast initial devices have gone through the process.

He believes that the open access move could help open up the market for more commercial M2M applications, such as in-home sensors and health care-related products. Sensors in the home could be used for everything from heat regulation to security.

The initial burst of M2M activity doesn't preclude more consumer-orientated open handsets trickling onto the Verizon network as well, Lewis says. "Those [M2M] vendors were smart enough to see what the advantages where and approach us first."

Other handsets could follow soon. "Android, LiMo, Microsoft," says Lewis. "It matters not to me, I love them all."

LiMo Foundation handsets are expected to arrive on Verizon in 2009; there has been speculation about Google (Nasdaq: GOOG)'s Android on the open network. Does Lewis, however, really expect Microsoft Corp. (Nasdaq: MSFT) -- the sworn opponent of all things Linux -- to go open access?

"You never know," Lewis says with a laugh.

Verizon spokesman Jeff Nelson also points out that if an Android device goes through an open network certification for Verizon, it could later become available on the "closed" network as well.

Verizon certainly sees the benefit of running the two networks in parallel, with more device cost breaks and customer support being offered on the regular old closed network. (See CTIA: Open Is the New Frontier.)

"There are 69 million people who do in fact vote with their wallet and say they do, in fact, enjoy closed," Nelson notes.

— Dan Jones, Site Editor, Unstrung

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
IPobserver
50%
50%
IPobserver,
User Rank: Light Beer
12/5/2012 | 3:32:12 PM
re: Verizon Wireless: Rise of the Machines
Looks a very smart strategy by VZW. Dan, any word on the proportion of devices that are EV-DO versus 1xRTT?

Most machine-to-machine services (telemetry, normally) have historically only required low bit rates and so work fine on GPRS and 1x. IGÇÖd be very interested to hear about applications using 3G.
joset01
50%
50%
joset01,
User Rank: Light Beer
12/5/2012 | 3:32:11 PM
re: Verizon Wireless: Rise of the Machines
Lewis wouldn't talk much about numbers but I got the sense it was mostly applications that don't need much in the way of speed.
lrmobile_Ziggy
50%
50%
lrmobile_Ziggy,
User Rank: Moderator
12/5/2012 | 3:32:10 PM
re: Verizon Wireless: Rise of the Machines
M2M device vendors are probably considering 1x-only designs (though the chips are not that much less expensive than EVDO ones), but Verizon may actually prefer devices with EVDO. EVDO, even for low data rates, efficiently uses the channels, while 1x data services are less efficient and reduce the capacity available for voice services (which are still, as far as I know, Verizon's bread and butter).

Device manufacturers and Verizon may have conflicting goals. It's easier to deal with those when one controls which devices are sold for the network. For this "open network" initiative, I don't know how they are dealing with the issue.
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
Cats with Phones
Cats Are a Smartphone's Best Friend Click Here
Whoever said cats didn't live to please their humans?