Unlocked Phones?

Perhaps we will have to hope for Google to win the right to build a national wireless broadband network before we see unlocked phones on a wide scale. To this point, wireless carriers have argued they have to lock phones for several reasons, including some that are technical, but also to subsidize the handsets and control monthly recurring costs. Up to a point, that's reasonable.

But carriers could dispense with the objections some customers have to locked devices in a pretty simply way: create separate plans for unlocked phones. Sell the phones for full retail price and charge different prices for access. Warn users that some features might not work, or work in the same way, as they do on "locked" devices.

Carriers might just find out that most users don't care whether their phones are locked or not. Others will be passionate about using their own devices, and might not mind higher device prices or even higher monthly access fees.

Of course, one significant reason for locking phones is to prevent use of data connections for mobile VoIP. But people already can do this, even on phones that don't run the Symbian operating system. Sooner or later, unlocking will happen. As is always the case, it probably won't until somebody really dangerous convinces the legcy carriers to move. That somebody has to be Google.

Will Verizon Wireless go WiMAX?

Will Verizon Wireless someday adopt WiMAX as its fourth generation access platform? And if it does, will WiMAX swiftly become just one more access technology wireless incumbents use to reach customers? If so, will WiMAX really be disruptive?

So here's the logic. Vodafone has at least for the moment chosen to keep its 45 percent stake in Verizon Wireless. And though it hasn't been a WiMAX backer heretofore, Vodafone has become a principal member of the WiMax Forum, and has been conducting trials in Malta, France and Bahrain for some time now.

This might just be a hedge, as Vodafone also supports the cellular-based standard for very high speed data networks LTE (Long Term Evolution), as well as WiFi Mesh. But it's a fast-moving world, and Vodafone at the very least wants to react swiftly in case WiMAX takes off as a primary tier one provider access platform.

In the U.S. market, two code division multiple access (CDMA) networks are Sprint and Verizon Wireless. The Sprint Clearwire alliance ups the ante. And Vodafone obviously knows things we do not. But there is some chance WiMAX becomes a major incumbent access platform. And that would clearly blunt its use as a competitive and alternate pipe.

Still, it is fair to argue that WiMAX, even in the hands of incumbents, will spur some "goodness". Sprint WiMax will launch first in Chicago and Washington, D.C. in early 2008, offering 2 Mbps to 4 Mbps service for an estimated $55, company executives have suggested. That would blow the doors off at&t or Verizon 3G offerings, I have to tell you.

Sprint also will be mulling a more open approach to use of that bandwidth than we have been accustomed to seeing on wireless networks. So maybe more competitive and open goodness will flow from WiMAX, even if it winds up being a major incumbent access platform.

Sprint, Clearwire to Create One National Network

Sprint Nextel and Clearwire say they will combine their efforts and spectrum to create a national mobile WiMAX network covering the entire United States. Sprint Nextel's network would cover 185 million people while Clearwire's would cover 115 million.

Services would be sold under a common brand. The two firms have set a target of 100 million potential customers initually, by the end of 2008. There is no word on what becomes of Clearwire's VoIP deal with BCE. As part of the deal, Clearwire will have the ability to offer Sprint Nextel’s third generation voice and data services as part of a bundle or on a stand-alone basis to Clearwire’s customers, which will also allow Clearwire to provide dual-mode services to its customers.

Sprint Nextel will take the lead in establishing relationships with national distributors and other potential strategic partners, including wholesale or mobile virtual network operator (MVNO) arrangements. The initial term of the arrangement is 20 years, with three 10-year renewal periods.

Nobody has excess capital to throw into a new national broadband access network, it certainly appears.