Verizon offers to cut exclusivity periods so rural carriers can get phones quicker
By Chris Ziegler 
posted May 11th 2009 8:44AM
posted May 11th 2009 8:44AM
Call it goodwill, call it a PR stunt, but either way, the intended recipients of the gesture aren't biting -- yet. Verizon has gone on record saying that it has offered to reduce its exclusivity periods on phones it sources from Samsung and LG to just six months for rural carriers wishing to pick up the same devices; thing is, we've seen phones straight-up discontinued in less than six months, and understandably, the rurals are unimpressed with the offer. Specifically, Verizon is making the offer to members of the 25-carrier Associated Carrier Group, all of which use CDMA and represent a grand total of roughly 2.6 million subs. With juggernauts like Thumb Cellular (slogan: "Talk of the Thumb!") in the ACG, Verizon's overture does virtually nothing to hurt its competitive advantage -- and ACG's concern is that they'll need time after the exclusivity period expires to tweak devices for their networks' needs, meaning you're actually looking at more than six months from Verizon launch to... say, Thumb Cellular launch. Interestingly, the ACG was formed primarily to achieve some of the handset manufacturing economies of scale that the big guys enjoy, so they've got some sway to produce models of their own and don't necessarily need Verizon's help to get timely devices to market -- but it'd be nice. And no, Verizon, six months isn't timely in this industry.[Via Phone Scoop]
Im going to agree with Chris on this... 6 months is not timely at all.
I would say that all exclusivity should be limited to 3 months on all carriers, and even more so - they should be expanded to cover the two different major network platforms in the USA, GSM and CDMA.
ie, iPhone has deal with AT&T for 3 years. THREE YEARS!!! ARE THEY INSANE? With the new rule I proposed it would mean that not only would AT&T, who is GSM, only get the iPhone exclusive for 3 months rather then "as long as I damn well please cause Im AT&T" but it would mean that it would have to be offered in the other platform of CDMA be on Verizon or Sprint at the same time as the AT&T deal.
ie Palm PRE on Sprint, I think the deal is 6 months. But the new rule would state that while the phone is on Sprint, who is CDMA... the phone needs to be offered on AT&T or T-Mobile who is GSM.
It creates competition by lowering the exclusivity time, and by pushing the two technologies forth GSM, and CDMA and gives consumers a slight edge in the better price of the phone, plans, and network. Clearly if something is launched on Verizon and AT&T and its popular, say iPhone.... MY GOD its a network free for all. If its on Sprint and T-Mobile however, it really comes down to price and urban area coverage.
MORE COMPETITION - SHORTEN EXCLUSIVE DEALS!!!
You want to require manufacturers to make CDMA and GSM variants of the same device for any phone they sell? That doesn't sound like a good road to go down, honestly...
Sounds like a great plan... in a centralized economy.
If Palm wants to offer exclusivity to Sprint, then let them... it's their damn choice. ACG needs to work with Cricket, MetroPCS and those other regional CDMA players to get even better economies of scale.
I don't see any incentive for Verizon to reduce the exclusivity period at all. It's not like this is going to create warm fuzzy feelings for Verizon or anything.
Why are people mad that Verizon is shortening there exclusivity on phones? They can keep it the same and it will take longer for rural carriers to get a phone, or they can shorten that time and the rural carriers can get the phones faster. Which do they want. Why complain about something that VZW doesn't have to do? Just my question.