Verizon’s Open Network Device Focuses On Efficiency
Posted on: Friday, 11 July 2008, 08:33 CDT
Although the first device to make use of Verizon’s open network is less flashy, it may set the tone for the first generation of gadgets on the network.
Verizon announced the new battery-powered modem that connects to a sensor that dips into large storage containers, like construction-site diesel tanks or tanks of shortening at a food factory. It comes from SupplyNet Communications, a 21-employee firm.
When a tank runs low, the modem sends a text message to SupplyNet, which alerts the customer that it needs a refill.
Experts acknowledge that the so-called machine-to-machine application is far from sexy, but it offers efficiency to clients.
"Most of the devices that we are seeing are of the machine-to-machine type," said Tony Lewis, Verizon Wireless' vice president of open development.
Lewis added that the company has spoken to other firms that may be interested in developing cell phones under the program although no agreement has been made as of yet.
Before announcement of the Open Development Initiative, Verizon Wireless was known for keeping its network closed to devices it sold itself. It fought regulatory initiatives to force carriers to open up, saying that it needed to guard the integrity and reliability of its network against rogue devices.
But after the Federal Communications Commission announced it would apply an "open access" requirement to a section of desirable wireless spectrum set to be auctioned, Verizon Wireless announced it would open its doors to any device that passed a brief technical qualification process. It later bought most of the spectrum.
Dave Burstein, editor of the DSL Prime telecommunications newsletter, described the new approach as “wonderful,” adding that it could allow for the development of new phones with beneficial features such as extremely cheap international calling or exceptionally long battery life.
But the ODI represents Verizon Wireless catching up to policies already in place at other carriers. For instance, it's already relatively easy for M2M companies to use AT&T Inc.'s network.
Schaumburg, Ill.-based SupplyNet manages 25,000 wireless modems on different carriers, according to Bernie Crump, vice president of sales and marketing.
Another maker of M2M modems, Multi-Tech Systems Inc., is also participating in the ODI process. Its products are used in cash registers, medical devices, digital signboards and building alarms.
"We're very optimistic about their direction," said Duane Wald, a sales manager at Multi-Tech. The privately held Mounds View, Minn., company is larger than SupplyNet, but does less than $100 million in business each year.
As for sexy consumer gadgets, Crump can wait. M2M sensors save fuel, time and money.
"The difference between this and a cool consumer gadget is that this is practical," Crump said.
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Source: redOrbit Staff & Wire Reports
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