updated 03:40 pm EST, Wed December 5, 2007
Price & Verizon access
The decision to open up the Verizon cellular network was at least partly motivated by costs, says Denny Strigl, the company's COO. The Associated Press notes a speech given today by Strigl, in which the executive explained to investors that by involving third parties, it will be able to collect revenue while offloading important costs, most notably marketing and customer service. "We think it's a phenomenal new source of revenue for us," Strigl commented.
In a scheme similar to that of MVNOs, but more liberal, some people connecting through Verizon's network may never interact with the company directly; instead, they will pay third-party outfits, who will in turn pay Verizon based on the subscribers' network usage. As Verizon's return will be based on traffic, the company should be able to cope as third parties implement features like mobile TV. Data usage is likely to be Verizon's major concern, especially given the focus of phones using Google Android operating system.