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But Do We Still Need Gov't Intervention To Open Mobile Networks?
from the or-does-competition-work? dept
A month and a half ago, Walt Mossberg wrote up an article saying that government intervention was needed to get US mobile phone operators to open up their networks. I took issue with that notion, noting that it wasn't as simple as Mossberg made out, and there wasn't enough evidence that government intervention was needed or that it would help. In fact, we pointed out that competitive pressures were already pushing mobile operators, with the exception of Verizon Wireless, away from the walled garden model -- and while they hadn't adopted truly open models, it was likely to come with time and increased competition. And, in fact, as we noted last week, Verizon Wireless has responded to these competitive pressures by promising to open up (the reality of that promise remains to be seen).
With that in mind, I was a little disappointed to read Mossberg's take on Verizon Wireless' move. Mossberg cautiously commends Verizon Wireless, withholding full judgment until all the details are out -- which makes complete sense, and is a position I agree with. However, Mossberg fails to note that this (and other such moves) have all happened due to competitive pressures, rather than government fiat, and doesn't retract his call for government intervention. While it absolutely is true that the mobile operators remain too closed these days (even once Verizon Wireless details its plans), what we're seeing is how market pressures tend to drive markets toward openness in much more natural ways than by involving government intervention. The second the government got involved, lobbyists from the mobile operators would make sure that huge loopholes were slipped in that would likely make things worse for consumers, not better. Like Mossberg and many others, I'm frustrated and annoyed by the limitations put on mobile phone systems by operators, but I'm confident that pressure from within the industry and from outside of it (see the recent work of Apple and Google for a start) will eventually force the operators to open up -- and it won't take long for them to realize that the end result is better for everyone, including the operators themselves.
