Once upon a time, Google fought tooth and nail to keep the 700 MHz spectrum “open,” which has been the company’s mantra since Android’s release, only to be outbid by Verizon. While they didn’t necessarily “win” that auction, they did get the open access they so coveted. The two later got together and released the Droid, which turned out to indisputably solidify Verizon as the premier carrier for Android. So when news breaks that Verizon and Google are planning to sell the Galaxy Nexus without the Google Wallet service, it reeks of an irony so thick not even Archer can overlook. The Galaxy Nexus runs on Verizon’s 700 MHz LTE network — the same 700 MHz network Google tried so hard to keep open.
One of the open access rules that Verizon must abide by states that applications can’t be blocked from being used on the network. For better or for worse, Verizon is in the clear on that one. Dan Frommer states:
But the reality is that even if Verizon technically isn’t blocking the app from being installed, it is using its commercial leverage over Google to prevent Google from distributing it. I’d be willing to bet that Google would rather distribute its new flagship “Nexus” phone with Google Wallet preinstalled than without it. So, in effect, Verizon is using its influence over Google to prevent the app from being distributed. Call it “blocking without blocking”.
That is a problem. Google pretty much needs Verizon. And what’s even worse, Verizon knows that.
Verizon sent out a statement concerning the buzz surrounding the purported lack of Google Wallet.
Recent reports that Verizon is blocking Google Wallet on our devices are false. Verizon does not block applications.
Google Wallet is different from other widely-available m-commerce services. Google Wallet does not simply access the operating system and basic hardware of our phones like thousands of other applications. Instead, in order to work as architected by Google, Google Wallet needs to be integrated into a new, secure and proprietary hardware element in our phones.
“Does not block applications.” That phrasing is interesting. Verizon doesn’t feel like Google Wallet is an “application” but rather something that goes beyond, “integrated into a new, secure and proprietary hardware element.”
The reason as to why Verizon is asking Google not to include the app is still up in the air, but we do know that Verizon is “continuing our commercial discussions with Google on this issue.” I’m hoping I’m wrong, but that’s pretty much code for, it’s probably not coming.
MG Siegler puts it in a few short words:
You get in bed with the devil, the devil fucks you.
Basically.
Follow Me!