Wave: Could you comment on the FCC’s conclusion that the C-block licensee should allow consumers to attach any device and download any application?
Mr. McAdam: On the device side, I think you have to be very careful what you ask for. Some of our more closed devices today are the ones customers are most satisfied with using – like the Blackberry or the iPhone. They have pretty high stick rates. There aren’t a lot customers calling in and complaining about them. You don’t get a lot of returns and there aren’t any real surprises. The applications and the hardware are integrated and the customer gets a good experience.
Some of the other devices out there, and I won’t use any brand names, are not as tightly integrated. They allow applications to be downloaded from the web, then something goes wrong, customers don’t understand why their device won’t work, and they come back to the carrier and say, “Your device is no good.” Well, that’s the problem of an ill-defi ned open access environment, and why I think it’s ridiculous for the FCC to say that I have to allow a foreign application on any device I sell. We’re already subsidizing those devices to the tune of $100 to $200, and when applications go wrong our call-in rate goes up, our costs go up for returns and it becomes unnecessarily expensive for everyone involved. I think customers in the long run will suffer. They will view their wireless service as less reliable and that’s something we need to think about long and hard before we just rush headlong into implementing a new policy.
Wave: Verizon Wireless made another huge announcement in late November with the decision to go with LTE (Long-Term-Evolution) for your 4G technology. What was the bottom line on that?
Mr. McAdam: We had been looking at LTE for some time, and after we were certain of its capabilities the decision to go forward with it made a lot of sense. Our relationship with Vodafone makes it quite cost effective, and we believe LTE will provide our consumers with a tremendous high-speed experience and allow them to use the same handsets on our respective networks in the U.S. and in Europe.
Further, we believe combining LTE with our open access platform gives us a powerful growth opportunity and the best of all worlds to deliver on the fantastic promise of wireless.
Wave: Do you have a better idea as to when LTE will be commercially deployed?
Mr. McAdam: Not yet. We’re looking at more testing this year, and most likely will be operational sometime after 2010.
