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Verizon May Block, Delay New Windows Phones
Because Microsoft Balked at Verizon Control
by Karl Bode Friday 19-Oct-2012 tags: business · wireless · privacy · AT&T · wireless
Tipped by bdon78 See Profile
On the heels of this morning's news that Verizon's major new snoopvertising efforts are starting to raise the hackles of privacy advocates, bdon78 See Profile writes in to note that Microsoft appears to be balking at offering Verizon full access to their smartphones. According to a report over at Daily Mobile, Windows Phone 8 could be delayed or potentially cancelled due to a debate over device access. The report is rather vague, simply stating Microsoft is balking at remote Verizon access for "provisioning and such":

I received a tip from an insider source that tells me Windows Phone 8 could be delayed or could even be canceled. According to the source this is due to the fact that Windows Phone 8 software will not allow Verizon proper device management. Verizon phones are required to to be able to be accessed remotely for provisioning purposes and such. Apparently WP8 phones do not meet that requirement so Verizon can not use any WP8 phones in it's current state.

This matter is so serious that if this remote access is not granted the devices can enter a state, albeit rare, that they stop responding to certain systems on the Verizon network. Also according to my source that Microsoft and Verizon are in discussions about getting waivers so this issue can be fixed. However from what I am told Microsoft seems unwilling to give any waivers on this issue.

The rumor comes as Microsoft and Verizon stand on opposite sides over Microsoft's decision to opt users out of online snooping in their new version of Internet Explorer. Verizon joined AT&T is lambasting Microsoft's decision to empower consumers, insisting it could "drastically damage the online experience." From the wording of the report it's unclear whether this is really about Verizon's new Precision Market Insights snoopvertising, so we've asked Verizon for comment and will update this blog post with any response.

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DaveDude
No Fear

join:1999-09-01
New Jersey
kudos:1

Microsoft needs to buy a carrier

Microsoft needs to buy a carrier already. maybe tmobile. Mighty micro shouldnt have to deal with the whim of tiny verizon

Woody79_00
I run Linux am I still a PC?
Premium
join:2004-07-08
united state

Re: Microsoft needs to buy a carrier

agreed!

Maybe Microsoft should just "become a carrier" as a second line of business. There is no doubt Microsoft has the capital to cover the entire country in 4g LTE and still have tons of money left over to spare.

then MS can offer straight $70 dollars a month 800 minutes, unlimited text, 3GB plans....its competitive, its reasonable, and it will turn Microsoft a good profit while undercutting AT&T and Verizon (just like MS took out Apples knees back in the PC days)

Do it Microsoft...this country is "dieing" for a 3rd viable competitor to enter the market place in wireless to force AT&T and Verizon to price competitively instead of the current dualopy...
silbaco

join:2009-08-03
USA

Re: Microsoft needs to buy a carrier

Microsoft might... if they actually cared about creating competition. They are one of the most anti-competitive companies on earth. They don't care.

ZOak

@uab.edu

Re: Microsoft needs to buy a carrier

Actually, that distinction goes to Apple.
silbaco

join:2009-08-03
USA

Re: Microsoft needs to buy a carrier

It goes to both.

Cheese
Premium
join:2003-10-26
Naples, FL
kudos:1
Right, as Apple tries to sue anyone who it deems competition
itguy05

join:2005-06-17
Carlisle, PA

Re: Microsoft needs to buy a carrier

said by Cheese:

Right, as Apple tries to sue anyone who it deems competition

Only those that steal its designs an ideas. Same reason you can't have Niky Air or Roebok Zig or Aasics Gel. Or a Suny TV. Or a Honduh or Tooyota.

Cheese
Premium
join:2003-10-26
Naples, FL
kudos:1

Re: Microsoft needs to buy a carrier

said by itguy05:

said by Cheese:

Right, as Apple tries to sue anyone who it deems competition

Only those that steal its designs an ideas. Same reason you can't have Niky Air or Roebok Zig or Aasics Gel. Or a Suny TV. Or a Honduh or Tooyota.


Metatron2008
Premium
join:2008-09-02
Stockbridge, GA
You mean like how mac os was a copy of xerox apple fanboy?

spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1
Reviews:
·SureWest Internet

Re: Microsoft needs to buy a carrier

said by Metatron2008:

You mean like how mac os was a copy of xerox apple fanboy?

itguyo5 probably bought his first shiny iproduct a few years ago, is fully drunk on the koolaid and has no knowledge of what you are referring to.
--

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Cheese
Premium
join:2003-10-26
Naples, FL
kudos:1

Re: Microsoft needs to buy a carrier

said by spewak:

said by Metatron2008:

You mean like how mac os was a copy of xerox apple fanboy?

itguyo5 probably bought his first shiny iproduct a few years ago, is fully drunk on the koolaid and has no knowledge of what you are referring to.

Like 99.9 percent of Apple users...
itguy05

join:2005-06-17
Carlisle, PA
said by Metatron2008:

You mean like how mac os was a copy of xerox apple fanboy?

Except its well documented Apple LICENSED it from Xerox. Nice try though.

Cheese
Premium
join:2003-10-26
Naples, FL
kudos:1

Re: Microsoft needs to buy a carrier

Except, they didn't, otherwise Xerox wouldn't have SUED them. Nice try though.

BF69
Premium
join:2004-07-28
Camden, TN
said by itguy05:

said by Cheese:

Right, as Apple tries to sue anyone who it deems competition

Only those that steal its designs an ideas.

Yes Apple invented the thin tablet with rounded corners


OSUGoose

join:2007-12-27
Columbus, OH
Funny because those things are still being sold on the corner out of a truck in my city.

djrobx

join:2000-05-31
Valencia, CA
kudos:1
Reviews:
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Simspons
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Rogue Wolf
Really Ties The Room Together

join:2003-08-12
Troy, NY
Except that, to better fit the analogy, Nike would be suing Reebok and Starter for having things like "rubber soles" and "shoelaces".
--
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Metatron2008
Premium
join:2008-09-02
Stockbridge, GA

Re: Microsoft needs to buy a carrier

The best analogy would be Nike, after making themselves successful by stealing an original competitors shoes, now sues others for making shoes.

Camelot One
Premium,MVM
join:2001-11-21
Greenwood, IN
kudos:1

Re: Microsoft needs to buy a carrier

Not for making shoes, but for making shoes that fit over feet. The shape would be the issue, along with the color and laces.
itguy05

join:2005-06-17
Carlisle, PA
said by Rogue Wolf:

Except that, to better fit the analogy, Nike would be suing Reebok and Starter for having things like "rubber soles" and "shoelaces".

Not really. Apple got a patent (and Nike, Reebok, Asics, etc all have patents and design patents) for a specific design of a tablet. Not a rectangle with rounded corners. Samsung ripped that off, plain and simple. Same as if Reebok came out with Reebok Air or Reebok Shox.

When you have a product that looks shockingly like your competitor and your head honcho emailing "make it look more like the iPhone" and your partner warning you it looks too much like the competitor, you are obviously ripping someone off.

Camelot One
Premium,MVM
join:2001-11-21
Greenwood, IN
kudos:1

Re: Microsoft needs to buy a carrier

said by itguy05:

Not really. Apple got a patent (and Nike, Reebok, Asics, etc all have patents and design patents) for a specific design of a tablet. Not a rectangle with rounded corners. Samsung ripped that off, plain and simple. Same as if Reebok came out with Reebok Air or Reebok Shox.

As a point of fact, a big part of the lawsuit was over the shape of the device itself. Apple did feel they had a valid patent for the shape, rounded corners, and color.

Metatron2008
Premium
join:2008-09-02
Stockbridge, GA
Reviews:
·Charter

Re: Microsoft needs to buy a carrier

»en.wikipedia.org/wiki/Apple_Comp···poration

quote:
In the midst of the Apple v. Microsoft lawsuit, Xerox also sued Apple alleging that Mac's GUI was heavily based on Xerox's.
There ya go apple fanboy. There's your 'liscensing'.

Cheese
Premium
join:2003-10-26
Naples, FL
kudos:1

Re: Microsoft needs to buy a carrier

Typcial for the Apple fanboy to spout misformation...

Metatron2008
Premium
join:2008-09-02
Stockbridge, GA
Reviews:
·Charter

Re: Microsoft needs to buy a carrier

What I find so funny about these mac fanboys is that they act like they've never gone into a store and notice how few items actually look different...

Apple comes along, makes a popular design in the iphone, then wants to act like it created the smartphone. Instead of using common sense, the fanboys rush to defend them online.

Cheese
Premium
join:2003-10-26
Naples, FL
kudos:1

Re: Microsoft needs to buy a carrier

said by Metatron2008:

What I find so funny about these mac fanboys is that they act like they've never gone into a store and notice how few items actually look different...

Apple comes along, makes a popular design in the iphone, then wants to act like it created the smartphone. Instead of using common sense, the fanboys rush to defend them online.

100 percent truth.

NY Tel
Premium
join:2004-04-09
Smithtown, NY
kudos:3
Reviews:
·AT&T CallVantage
said by Cheese:

Typcial for the Apple fanboy to spout misformation...

I thought this survey was interesting, in the context of Apple products.

»mashable.com/2012/10/21/reality-···graphic/

Smith6612
Premium,MVM
join:2008-02-01
North Tonawanda, NY
kudos:22
Let's not forget, Microsoft has bailed Apple out a few times with agreements to keep Apple going.
BiggA

join:2005-11-23
EARTH
They would need spectrum to do it.
Joe12345678

join:2003-07-22
Des Plaines, IL
and they must let you use any phone even the i-phone and let you take that MS phone over to AT&T or others as well.
eco
Premium
join:2001-11-28
Wilmington, DE
The problem is then no other carriers are going to carry MS phones which is another problem they don't need right now.

IllIlIlllIll
EliteData
Premium
join:2003-07-06
Hampton Bays, NY
kudos:7
T-Mobilesoft
jagged

join:2003-07-01
Boynton Beach, FL

Re: Microsoft needs to buy a carrier

T-Mobile HQ is right near some of Microsoft offices in Bellevue, Washington it would be a great fit
CXM_Splicer
Looking at the bigger picture
Premium
join:2011-08-11
NYC
kudos:1
Just a minor point... Microsoft revenues are around $18 billion per quarter while Verizon's are closer to $30 billion.
jagged

join:2003-07-01
Boynton Beach, FL

Re: Microsoft needs to buy a carrier

Microsoft has about a $70-80 billion in their bank account. Verizon (should really be just Verizon Wireless really) has ~$65billion in debt
CXM_Splicer
Looking at the bigger picture
Premium
join:2011-08-11
NYC
kudos:1

Re: Microsoft needs to buy a carrier

And Microsoft has around $10 billion in debt... Verizon also has around $30 billion in their bank account. Point is, no matter how you look at it, Verizon is hardly 'tiny' compared to Microsoft.
en103

join:2011-05-02
Reviews:
·RoadRunner Cable

Microsoft is late to the party

M$ WinPhone (WP7 makes me think of WordPerfec7 too much) hasn't taken off ... and probably will not take off the way that Android/iOS has.

1. MS has few vendors on the hardware front (Nokia and.... ?)
2. MS isn't exactly known for being open or inventive in the past decade. I doubt Firefox will run on it (bypass IE for snoopervising)
3. Gotta rally the developers - will it run my apps ?

I feel that MS WinPhone is between the openness of Android and the walled garden of iOS, not really appealing to either type of user.
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: Microsoft is late to the party

To be fair, MS has HTC, Samsung and LG on board as well. They just all happen to make Android phones, and push those more than their Windows counterparts.

Brian329

@pacbell.net

Windows Phone on Verizon

I have five Windows Phones on my account now. All of us love WP over Android and Apple. If Verizon does not get any new WP8 phones by March of next year, I will transfer our family account elsewhere. I have been getting more annoyed by the week with Verizon's stupid corporate antics.
compton

join:2002-02-08
Brooklyn, NY

Re: Windows Phone on Verizon

said by Brian329 :

I have five Windows Phones on my account now. All of us love WP over Android and Apple. If Verizon does not get any new WP8 phones by March of next year, I will transfer our family account elsewhere. I have been getting more annoyed by the week with Verizon's stupid corporate antics.



Yeah, right.

OSUGoose

join:2007-12-27
Columbus, OH
Reviews:
·Insight Communic..

Re: Windows Phone on Verizon

I'm looking at T-Mobile's device if VZ doesn't get it together soon and release something on par THIS YEAR. T-Mobile has a tower on our campus (top of a dorm building) so VZ no longer has a edge there, something I've posted to the FB page and gotten a who cares response on.
jagged

join:2003-07-01
Boynton Beach, FL

Re: Windows Phone on Verizon

the HTC 8X will be on T-Mobile, if it's as good as it looks on video then it should be a pretty rad phone.

OSUGoose

join:2007-12-27
Columbus, OH

Re: Windows Phone on Verizon

I want the Nokia Lumina 810

Lone Wolf
Independent Voter, Buy Gold and Guns
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USA
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said by Brian329 :

I have five Windows Phones on my account now. All of us love WP over Android and Apple. If Verizon does not get any new WP8 phones by March of next year, I will transfer our family account elsewhere. I have been getting more annoyed by the week with Verizon's stupid corporate antics.

I'm sure Verizon feels threatened now!
silbaco

join:2009-08-03
USA

haha

Usually I would be pro cell phone maker in this case, but it's Microsoft....

If Verizon is truly blocking it because they need the access to maintain network reliability, then they have a very valid reason. If they just want it for control... well Microsoft should not be one to complain. Since when have they been pro user privacy? Their little decision to enable "do not track" by default is going to kill the chance of gaining privacy we had.

This is about control. They both want control and they can't both have their way.

See 6 replies to this post

jmn1207
Premium
join:2000-07-19
Ashburn, VA
kudos:1

..and such?

Is this adding multitudes of bloatware to the device or potentially blocking otherwise normal functionality that would bypass their pricing schemes?
Chubbysumo

join:2009-12-01
Superior, WI
Reviews:
·Charter

Re: ..and such?

said by jmn1207:

Is this adding multitudes of bloatware to the device or potentially blocking otherwise normal functionality that would bypass their pricing schemes?

This right here is what its all about. MS has told verizon that it is not to be able to do anything to the device, just in copying apples closed model, taking further power away from the carriers, which verizon does not want. Do you think verizon would have allowed any phone that it cannot control besides the iphone(which it does exercise some control over, just not much). wireless carriers will not let another apple happen(where they have exactly zero control, or very little control), so, since MS has less assets than Apple, they won't let it fly. Apple could call it anti-competitive if all the other carriers say the same thing, but, i doubt AT&T will turn down what Verizon turns down(look at how the Iphone exclusivity played out, verizon will not make that mistake again).

cork1958
Cork
Premium
join:2000-02-26

Re: ..and such?

Verizon should just die. As should AT&T and most other huge conglomerates.

I think I've said that before too!!

I hate big companies as the bigger a company gets, the dumber they seem to get also!

Being stupid must be a prerequisite to get in at the upper level.
--
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tanzam75

join:2012-07-19
said by Chubbysumo:

Do you think verizon would have allowed any phone that it cannot control besides the iphone(which it does exercise some control over, just not much). wireless carriers will not let another apple happen(where they have exactly zero control, or very little control), so, since MS has less assets than Apple, they won't let it fly.

The carriers are grumbling that their profits decrease if they sell more iPhones. Yet they refuse to allow any other handset maker to exercise the same level of control.

But it's precisely the carriers' lack of control, their inability to crap up the OS, that makes the iPhone successful. If you buy an iPhone, you know it'll have a certain battery life, that it won't be preloaded with carrier junk, that the carriers can't block updates. If you buy any other phone -- including a Windows phone -- you cannot be guaranteed the same things.

The carriers just don't seem to get it. So long as the iPhone remains unique in its freedom from carrier control, so long will the iPhone have an advantage over the competition. If they want to stop paying double the subsidy to Apple, then they should let other phones compete on a level playing field.

The record labels did the exact same thing. They gave very favorable terms to Apple to start the iTunes store, and then they refused to give anyone else the same terms. In this way, they ensured that Apple would be the monopsony buyer, and that Apple would hold all the cards in pricing disputes.

MemphisPCGuy
Taking Care Business
Premium
join:2004-05-09
Memphis, TN
Reviews:
·Comcast

Guess it's about time..

... I tried a provider other than Verizon.

I really want a WP8 phone. My WP7 phone is great and it is just a lowly HTC Trophy, since Verizon opted to only provide one model.
--
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psiu_nws

join:2004-01-20
Plymouth, MI
Reviews:
·Comcast

Re: Guess it's about time..

said by MemphisPCGuy:

... I tried a provider other than Verizon.

I really want a WP8 phone. My WP7 phone is great and it is just a lowly HTC Trophy, since Verizon opted to only provide one model.

Yeah, I'm dying to replace my Trophy but will until something like the Lumia 920 comes along. Used an upgrade this spring on a 4S and sold it new (before they added the $30 upgrade fee, and used my last NE2), so I'm paying retail from now on (ACII 450 minute family plan, $5 texting, unlimited data). Outside of the awful camera I love the Trophy...and I've used Android and iOS a lot.
itguy05

join:2005-06-17
Carlisle, PA

Who cares? WP8 is irrelevant

So the 50 people that like Windows Phone and think its a good OS (ie the blind) won't get their phones. IOW few will care or notice.

46% of Verizon's smart phones this quarter came from iPhones. 21% of LTE devices were the iPhone 5 and it was barely available for a quarter this month. They don't need Windows Phone with numbers like that.

They could give MS the middle finger and nobody would notice. However if they were to, they better get their licensing in order as once you piss MS off they have a habit of auditing you to death.

OSUGoose

join:2007-12-27
Columbus, OH
Reviews:
·Insight Communic..

Re: Who cares? WP8 is irrelevant

That's the case since VZ went half-cocked on WP7 got the shittiest phone possible then did zilch to promote it. Walk into a VZ store the reps will instantly push android (pre-iphone) and now iPhone mostly. Ask about WP7, and they will steer you away to Android. Reps don't sell whats best for the customer (despite PR claims) they guide and direct to what they get the best commission on which is Android and iPhone. Pre-Droid and iPhone the reps would push you to BlackBerry, ask about when the iPhone would be coming to VZ they would always recommend the BB Storm.

Bootes
Premium
join:2005-01-28
Palo Alto, CA
This is basically what happened between Apple and Verizon before the first iPhone came out, which I'm pretty sure they considered a mistake.
mlcarson

join:2001-09-20
Los Alamos, NM

Don't let Verizon touch it.

Why can't the carrier just butt out? Just publish the specs necessary to interface into their network and leave everything else to Microsoft? All I want from the likes of Verizon/ATT/Sprint is access to their network with my own device and I'll pay them for the privilege. They shouldn't be in the business of selling/discounting phones and deciding what should/shouldn't be on them.

I can just see how updates will go -- Microsoft releases update and 12 mo's later Verizon will allow the phone to have it after they determine how to cripple every feature they don't like and add enough bloatware that the thing barely has the resources to function.

Lone Wolf
Independent Voter, Buy Gold and Guns
Premium
join:2001-12-30
USA
kudos:1
Reviews:
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Re: Don't let Verizon touch it.

said by mlcarson:

All I want from the likes of Verizon/ATT/Sprint is access to their network with my own device and I'll pay them for the privilege. They shouldn't be in the business of selling/discounting phones .....

Buy an unlocked GSM phone and choose your carrier: If you really want to save money go to an MVNO, »www.mvnolist.com/

No bloatware and after 2 years you can save hundreds of dollars if not thousands over Verizon and Sprint. The discount phones are NOT a discount but a ploy to make you use their overpriced service.
--
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Give the government back to the people.
old_wiz_60

join:2005-06-03
Bedford, MA

Same reason for original iPhone...

Apple did approach Verizon as the carrier for the original iPhone, and the big reason Verizon said NO was that they wanted to control what went on the phone and require installation of their crapware Vcast service and other junk.
steevo22

join:2002-10-17
Fullerton, CA

Re: Same reason for original iPhone...

I never heard that, but what I did hear was Steve Jobs saying NON-GSM networks were undesirable and he didn't want to support them.

Which is how it's all turning out now.

camaro92
Question everything
Premium
join:2008-04-05
Westfield, MA
Reviews:
·Comcast

Holy Crap

Microsoft's decision to opt users out of online snooping in their new version of Internet Explorer.

A big + for Microsoft (never thought I would say that). Wow finally big money goes up against bigger money and we might actually make out in the end and not get screwed getting caught in the middle of this bitch fest.

If I want to be tracked and receive targeted adds then I will turn it on myself not some company trying even harder to make as much money as possible at my expense, I bought a phone, I don't want to be transformed into a walking advertisement when I am out and about.
jagged

join:2003-07-01
Boynton Beach, FL

Re: Holy Crap

Microsoft can opt us out of online tracking (which is pretty inaccurate to begin with) but ad networks would just ignore any do not track flags sent by IE10.

the thing is, as a site owner, I earn more if ad networks have a good guess about the audience.

And as an advertiser I spend less and earn more if I can correctly guess the audience seeing my ads.

I would venture a guess a lot of sites will go behind pay walls in the near future as simply showing ads and hoping the right people see them earns them pennies instead of dollars and makes supporting and serving content unsustainable

mech1164
I'll Be Back

join:2001-11-19
Lodi, NJ

Re: Holy Crap

said by jagged:

I would venture a guess a lot of sites will go behind pay walls in the near future as simply showing ads and hoping the right people see them earns them pennies instead of dollars and makes supporting and serving content unsustainable

And do what will happen to those that do that? Die an even more certain death. The only way a true pay wall works is if you have a commodity people want. Most of what is on the net is may be entertaining but hardly worth paying for it. As it is now I have ABP on my browser for a reason. I avoid any place that forces me to belly up for what they want me to see. There are very few things I need on here that I would pay for (netflix, a MMO game or two). Otherwise I will ignore them like the plague if they do this.

So go ahead and do this I have other options then you.
stufried
Premium
join:2003-10-13

What about unsubsidized?

Verizon said as a condition of getting its LTE licenses that BYOD would be permitted.
bn1221

join:2009-04-29
Cortland, NY
Reviews:
·RoadRunner Cable

Re: What about unsubsidized?

They lie. If that was the case I could use a Sprint Iphone 5.

What VZ did was f$ck up VoLTE so they can shaft everyone to use a Big Red phone as the voice still runs over 1x. That's how they get around it.

One nice with 4G is in theory you can pop and SIM into any Iphone 5 and use in in any country that isnt the USA
steevo22

join:2002-10-17
Fullerton, CA
BYOD should be the only way it is. Contracts should be banned.

Equipment should be bought on the open market with huge competition.

FiReSTaRT
Premium
join:2010-02-26
Canada

Whisky Tango Foxtrot

M$ standing up for consumers and privacy?! The sky is falling

skeechan
Ai Otsukaholic
Premium
join:2012-01-26
AA169|170
kudos:2

Time to break up Verizon

Ma bell style
neftv

join:2000-10-01
Broomall, PA
Reviews:
·SIP Global Phone
·QuantumVoice

Microsoft should setup their MVNOs

The way I see it for windows to get more main-steam and they have money in the bank they should contract with all the carriers to set up an MVNOs. Then setup reseller networks with the likes of Best Buy Mobile, Radio Shack which sell phones in thousands of stores across the country.
For example the new Nokia Windows 8 Phones are out for AT&T or will be out soon and Radio Shack as opted not to sell them as their big push is IPhones and S-3's right now. So maybe through an MVNO contract that will get them in the more abundant stores across the country. Just my 2 cents.
tito79

join:2010-03-14
Brewster, NY

Re: Microsoft should setup their MVNOs

Microsoft is protecting there in house hardware and software from getting bloated
VerizonCynic

join:2006-10-25
Lakewood, CA

reality

Ok when W8 phone gets about 20% market share lets talk again on this subject. As for MS what have they come out with in the last 10 yrs that get media buss and fanbois like apple and the goog. Finally show me a handset maker/mobile OS maker / cell carrier combo that is a big commercial success...(apple is 2 of three...google is 1 of 3)
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steevo22

join:2002-10-17
Fullerton, CA
Reviews:
·AT&T DSL Service

Carriers are the problem.

But the real problem stems from this:
Carriers keep a stranglehold on the equipment and use that to keep prices very high and everyone signed up for long contracts.

Since carriers have spectrum licenses "in the public interest", meaning they don't own the radio spectrum, they ought to be prohibited from buying or selling any cellphones.

If they were, the cellphone manufacturers would make whatever people want, not what carriers want. They would all be multi network and without contracts carriers like Verizon would have to satisfy their customers or the customers would change carriers. You and I could tell Microsoft what features we want in a windows phone, rather than Verizon taking features out so they can charge for that. They did that, by the way.

Prices would decline. Service would improve.

Carriers wouldn't have to subsidize phones and you would buy a nice smartphone hanging on the wall at Walmart for $99. or less. There would be actual competition, there is none right now.

Believe me, you go into Radio Shack and buy that phone today, the price you pay that day at Radio Shack is 100% controlled by the carrier.

How much do you really think it costs to make an Iphone in a factory in red China? Maybe $80 at the most. You can buy Iphone clones for $65 or less on Dealextreme today and those would take most of the same parts.

Cellular phones and service are a giant ripoff. The sooner carriers stop selling equipment the better.
tanzam75

join:2012-07-19

Re: Carriers are the problem.

said by steevo22:

Cellular phones and service are a giant ripoff. The sooner carriers stop selling equipment the better.

Agreed. And this isn't even speculation. We know it's better, because there are several natural experiments that prove this.

First, the break-up of the Bell System. Phone prices began dropping almost right away. Telephony devices proliferated -- fax machines, answering machines, modems.

Second, the mobile telephony market outside the United States. People switch phones when they want to -- not when the carrier contract is up. People switch carriers as often as they want, without penalty. Prices are lower. Service is better.

Third, the market for GPS units in automobiles. The built-in units cost more and give you less (with a few exceptions). But GPS units usually do not come standard -- they're usually an option. As a result, the portable GPS unit has become the primary way that people get GPS functionality in cars. When given the choice, people overwhelming choose the $100 Garmin over the $1000 automaker package.

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