Verizon Wireless announced it will open up its network and allow its subscribers to purchase mobile handsets from other companies for use on the carrier’s network. This is a complete reversal of previous policy (and the norm for all carriers in the US) and it is believed that this move was prompted by the proliferation of Web-enabled mobile devices that are currently hitting the market like the Nokia N95 and Apple iPhone. According to analysts, consumers in the US are demanding a more open mobile communications market like what they have in Europe. You can get more information on the announcement here: The New York Times and The Wall Street Journal

Here is an excerpt from the WSJ that answers a few immediate questions that come to mind:

What does Verizon’s announcement mean for cellphone users?

Consumers will be able to buy cellphones and other mobile devices sold by companies other than Verizon and use them on Verizon’s network. It also means consumers will be able to get special features and applications on their phones not offered by Verizon.

When will this go into effect?

It should go into effect in mid-2008.

Will I be able to use an old cellphone from another carrier like AT&T on Verizon’s network?

Not necessarily. U.S. cellphone carriers each operate on one of two different technical standards. Verizon and Sprint use CDMA technology, while AT&T uses GSM, the standard used in most of the world. Phones built to run on CDMA can’t operate on GSM, so an old AT&T phone, for instance, couldn’t be used on Verizon’s network. But it is possible an old Sprint phone could work on Verizon’s network.

Will I be able to buy the iPhone and use it on Verizon’s network?

Not in its current form. The iPhone runs on a GSM network; Verizon uses CDMA technology. Unless Apple Inc. comes up with a new CDMA phone, iPhone users will be out of luck.

Will the new plan mean that I can use my Verizon phone in more places overseas?

Not unless more manufacturers introduce handsets with chips that run on GSM technology, which is used in many nations outside the U.S., as well as CDMA technology, which Verizon uses. Some handset makers are starting to make these dual-mode phones, but they are still fairly rare.

Will Verizon’s cellphone plans cost as much if I’m using a phone I bought elsewhere?

Verizon is staying mum on pricing, but some analysts expect the company to charge more.

Verizon’s announcement talks about allowing outside “applications” on phones using the Verizon network. What does that mean?

Currently Verizon decides which software applications, like gaming and music services, it will allow on phones using its network. That has meant some applications designed by independent software developers haven’t been available on a Verizon cellphone. Verizon’s announcement changes that. Now any application that meets a new set of technical standards will be allowed on cellphones using Verizon’s network, opening the gates to more services.

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