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Verizon Wireless' Neutrality 'Offer' is Neutered: Page 2 of 3

Understated but still significant is that CDMA-based devices are bit more
carrier inflexible than their GSM counterparts. Unlike GSM devices, where a
SIM card (a removable card which associates the customer to their service)
can be moved freely from one device to another, CDMA devices require carrier
assistance and approval. For example, even if a customer purchased and
brought their own CDMA-compatible phone to a CDMA carrier such as Verizon
Wireless, Sprint Nextel, or Alltel, the operator might not associate the
phone's ESN (Electronic Serial Number) to the account if it isn't on their
'approved' list. What Verizon Wireless has done now, at the most, is bring
parity with the GSM carriers such AT&T and T-Mobile.

Verizon Wireless' announcement is more about market positioning than true
consumer friendliness. Verizon Wireless is no media slouch and is taking
the opportunity to pump up its media image.

Although the media fervor over net neutrality has quieted down from the peak
it reached several months ago when there were Congressional hearings on the
matter, the phrase has already become part of popular vocabulary. Sprint
Nextel, their primary CDMA competitor, has heavily communicated their own
plans for device and application neutrality on their WiMAX network.
Although Sprint's own hardware-neutral offer is suspect for the same reasons
as Verizon Wireless, it was a smart way for the struggling carrier to earn
public support and enthusiasm for a yet unbuilt wireless network. No other
CDMA operators have made similar statements about their network, so by
coming out first Verizon Wireless appear to be the shining knight on a white
horse.

Second, Google's own plans regarding Android and the associated Open Handset
Alliance have garnered significant positive press, and Verizon Wireless
likely wants to ride the wave and benefit from the public good will that
Google has generated.

Third, this move may also be in preparation for its plans in the upcoming
700 MHz auction, where one of the bands requires open devices. Although it
had protested the open access requirement even a few short weeks ago, it
appears Verizon Wireless is trying to make lemonade out of a lemon.