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Verizon's Bad Decision on Google Wallet
Submitted by admin on Mon, 05/14/2012 - 12:53
Even before it arrives on the market, the Samsung Galaxy Nexus smartphone will have its near-field communications chip neutered by Verizon’s apparent decision to block the Google Wallet app. Verizon spokesman Jeffrey Nelson claims that “…Google Wallet needs to be integrated into a new, secure and proprietary hardware element in our phones” and says it’s simply different than other apps. Nelson denies that Verizon is blocking the app – these other engineering considerations are what are keeping “Wallet” from working.
Of course many people are claiming that Verizon’s e-payment partnership with AT&T and T-Mobile is the obvious motivation to disable Google Wallet. Why allow a competitor to ISIS on the network?
If this is still true by the middle of 2012, Verizon will have made a silly business mistake. If I were sitting around the conference table discussing this decision, I would press a couple of points:
“What are you afraid of? Either you believe in ISIS or you don’t – you can’t block it on all phones, so why are we going to make a second-class phone out of the Nexus? This is a great phone – keep all the features!
“Block it?! Are you kidding? Don’t you see what you can learn here? Your customers will have a choice on e-payment systems and will probably be using both while retailers pick the winners. You get to watch it all happen on your network. You get to learn what customers prefer and how they are using ISIS and Wallet. Don’t close your eyes to what the competition is doing under some misguided premise that Wallet will fail if Verizon “breaks” their best phone.
I actually have some faith that Google Wallet will work just fine on the Verizon Galaxy Nexus. Verizon will come to the same wisdom that Microsoft did when they finally decided to sell Office on the Macintosh.
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