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Tuesday, December 11, 2007

Extraordinary Turn Around Saves Green for Verizon

After many analysis of market, Verizon's light turned on at the opportunity of Google's new Android software platform launch. This platform allows phone providers to have an open network. Verizon saw that this would bring a plethora of benefits to the company and to new customers. Its a big turn around for the mobile giant since their network and devices were locked making it expensive for small companies to develop Verizon's unique applications for all of their phones they purchase. Among its benefits of this upgrade:

  • It will allow users from other providers to switch to Verizon with out having to spend too much in getting them or for customers to buy a new phone.
  • Since they will not have technical support for devices and applications not offered by Verizon, it will cut costs this additional support, instead they will encourage the customers to contact their device or application provider.
  • Potentially allow millions of more customers for the company easily.
  • Have a standardized development of the nearly 800 applications and services provided by Verizon and implement them in many new devices that Verizon didn't have to purchase because they were already purchased by the new customer that switched to the network.

It seems as Verizon doesn't want to be left behind since Sprint and T-Mobile where among the first ones in the line to support Google's Android. Verizon just couldn't bear to see their competition getting ahead of them on this opportunity of gaining low-cost customers. Their Chief of Operations Officer, McAdam, laid out this plan to his managers and they were pretty impressed while others where surprised exclaiming " Wow, that's a big turning point ".

All of this makes sense because looking at the cell phone business in Europe, it's a free-for-all type of business and they have great success with customers switching from other providers and lowering costs in devices and applications for them since developers don't have to make different variations for each provider. Even Verizon's father Vodafone is in an open network. So with everyone going for these extra profit upgrades, th the peer pressure escalated so high that on Nov. 27 Verizon publicly announced their plans on giving in to the company's biggest provider policy turn around in history!

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