July 22, 2006
Verizon Inhibits Innovation
In a previous post, I touched on the differences between invention and innovation and ranted my disapproval for the overuse of "innovation" in popular marketing. It is time to name my first hypocrite: Verizon Wireless.
Verizon loves to say they are innovating. At the 2006 Consumer Electronics Show (CES), a speech by Verizon CEO Ivan Seidenberg stated numerous "innovations" by Verizon. He also said Verizon Wireless was "reinventing ourselves around new customer requirements and new technologies." Furthermore, "[Our networks are] a platform for anyone with a new idea for using speed and mobility to enhance the customer experience." Mr. Seidenberg, I wish that were true.
In reality, Verizon's networks only enhance the customer experience when there is money in it for Verizon. Verizon is notorious for crippling cell phones so built-in features are disabled and one must pay for a service offered from Verizon that provides similar functionality. For example, My LG VX 8100 supports MP3's. MP3 support is disabled by default (anybody with an LG phone can just go to the main menu, press 0, and enter the default password of all zeros to enable MP3 support, by the way). Also, Bluetooth functionality is often impaired. Many phones support the ability to transfer contacts to your computer and vice-versa. Verizon disables this and forces you to use "Backup Assistant," a subscription service that does this their way.
Finally, the issue of downloading your own applications to your mobile phone. There are lots of cool applications you can run on your phone, including Google Maps Mobile. Wireless carriers such as Sprint and Nextel allow users to download Java applications to their phones. Verizon Wireless doesn't offer J2ME support on their phones. Instead, you must use BREW. Just reading about BREW makes me sick. In short, even if you develop a BREW application for your phone, the carriers still have control over making it available to users' phones. This is how Verizon inhibits innovation.
There are people who are working on the next generation of applications for your mobile phone. These applications could certainly be an innovation, as they will change how people fundamentally use the telephone. Unfortunately, unless the people doing the development work for Verizon, there is little chance a Verizon Wireless user will be able to enjoy these applications the day they are released.
In summary, although Verizon claims to be reinventing themselves around new customer requirements and allowing people with new ideas to use their network for the benefit of the users, they are not. They have actually taken steps to prevent this from happening and will continue to extort customers for every little service as long as it remains a viable business strategy. Until then, customers wishing to ride the mobile technology wave will have to go with Sprint, Cingular, or any other carrier who openly welcomes innovative ideas from outside the company walls.
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Comments
I find it disturbing that Verizon's global phones are the ones that are SIM-capable. This limits the customer from being able to purchased the latest phone out there without the need of renewing their multi-year contract everytime an upgrade or purchase is done.
It also prevents customers that travel to countries in Europe or Asia to purchase the latest technological phones and be able to insert a US SIM chip so they can utilise the new features and games and still make calls back home.
Stifiling innovation..indeed!
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"In reality, Verizon's networks only enhance the customer experience when there is money in it for Verizon."
Why would a major corperation do anything if it was not to make money. Innovations are used to gain market share without simply lowering overall product price. Innovations are never something a company will employ just because they want to be "nice" to their customers.
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