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Editorial: Opportunity rings for cell phones

Issue date: 11/28/07 Section: Editorial/Opinion
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11/28/07 - With nine out of 10 college students carrying cell phones, they have become almost as ubiquitous as textbooks. With them has come the ability to quickly rearrange dinner plans or access the Internet. And, at the same time, whopping bills. However, one theory has the potential to lower those bills.

Yesterday, Verizon Wireless announced its intent to open its network to non-Verizon devices and applications. The potential is huge - and wonderful. With an open system, the cell phone spectrum will slowly become more like the Internet where a free flow of applications developed by regular citizens help break the monopolistic grasp of big corporations.

The possibilities are endless. With the ability to connect any device on the Verizon network, dozens, if not hundreds, of smaller phone manufacturers will have an opportunity to compete head-on with giants LG, Samsung and Motorola. Simple economics say that when supply and choices increases, prices will fall, good news for college students living on shoestring budgets.

And users of more complex phones like T-Mobile Sidekicks and Blackberries stand to gain greatly from the development of custom applications. If Facebook.com is any example, the opening of a proprietary platform will bring a deluge of new creations. Everything from the helpful - calculators, planners, etc. - to the fun - video games and time-killers - will be at cell phone users' fingertips. No longer will students need to be satisfied sending text messages during class. The new applications will open up wonderful new doors to avoid the droning on of a boring professor.

The move by Verizon also has far reaching implications for the future. In 2009, the government will take ownership of the part of radio spectrum used for analog television, commonly referred to as the 700MHz spectrum, and auction it off. The Federal Communications Commission is readying to accept bids next month and as part of that Google has demanded the commission include in bidding rules a requirement for an open network.

Verizon and Google, which are experiencing some of the strongest growth in the technology industry, appear to realize that tomorrow's phone industry profits will not be based on the sale of phones, but the services that make those phones relevant, and increasingly necessary, in our inter-connected world. Other technological giants should take heed.
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