A changing tide? Ovi, Android loosen carriers

The wireless industry usually teems with laugh-inducing sniping and enjoyable acrimony. But last week, it was all about the love.
The mobile space in the past couple of years has become an “us vs. them” showdown as entrenched carriers struggle with the rise of off-deck application developers and other third-party players. In the past few days, though, the world of wireless has been more harmonious than a Beach Boys reunion.
Nokia Corp. surprised onlookers when it bagged a huge win for Ovi, its direct-to-consumer uber-service. Ovi had already been the source of contention for some carriers, but Vodafone Group plc-one of the world’s largest and most influential network operators-said it will make the brand’s wide-ranging offerings available directly to its users. Sony Ericsson was quick to follow Nokia’s lead, stating that it is looking to partner with wireless service providers as it expands its off-deck PlayNow business.
And Google Inc. last week stole headlines with an alliance of industry heavyweights centered on a new, open-source software platform. The 34-member group includes several heavyweights from the mobile hardware field as well as-gasp!-a half-dozen carriers such as NTT DoCoMo Inc., Sprint Nextel Corp. and T-Mobile.
The prospects for Android are uncertain, and it’s unlikely to produce a phone that will take you to the moon or turn into underpants (per this video from Google’s Open Handset Alliance). But the group’s clout is undeniable, and Google is already dangling $10 million in prizes to motivate developers.
Even Verizon Wireless-which boasts the most fortified garden walls of any major U.S. operator-said it welcomed Google’s effort to push “more open development of applications on mobile handsets,” adding that it may opt to join Android at some point in the future.
Of course, there was plenty of discord in wireless last week as well. Sprint Nextel and Clearwire Corp. couldn’t get through their honeymoon without seeking an annulment, and the writers’ strike is already impacting video content for the third screen.
And yes, I know that this newfound cooperation is nothing more than another way for carriers and all the other players to fill coffers and make shareholders smile. Still, the moves contrast starkly with the go-it-alone strategies that resulted in carrier-branded music services that have failed to find much of an audience, for instance, or exclusive deals like Verizon’s tie-up with YouTube.
Whether Android or Ovi will see any actual traction is uncertain, of course, and neither effort is likely to be a game-changer any time soon. But last week’s announcements mark more than just a Kumbaya-style change of heart for some operators. They signal a willingness to sacrifice “owning the customer” in exchange for creating a valuable, long-term relationship.
That’s not as much fun as sniping, but it’s sure to be more productive.