Does The Verizon/Microsoft Deal Hurt The End User?

Last week we heard that Verizon has selected Microsoft to be the sole provider of mobile search and advertising solutions on the Verizon portal.

Upon hearing this news, I asked myself, "wow--that is a great deal for Microsoft, but is it good for Verizon? "

After a few days of thinking about it, I have some additional thoughts and questions:

  • Will mobile portals be relevant in a few years (to me, they are not relevant today)?

    • With the proliferation of advanced mobile operating systems (iPhone, Android etc.)? The notion of the mobile portal is slowly becoming irrelevant to more and more people

    • Will Verizon be able to provide a valuable experience for those users who do not own a mobile device with a slick OS? After all, once a user open's a browser, they are out of the confines of the Verizon's portal?

      • Have we not learned that closed portals don't work?





  • Will this deal diminish the user experience for those that still use the Verizon portal?

    • Microsoft search is an inferior product to Google; that is why people choose to use Google online

    • The integrated ad platform introduced may be good for media buyers, but is it good for consumers?




MIcrosoft's press release states the following:
The rapid adoption of a wide variety of data services and the substantial change in the way wireless customers use their devices is driving the need for new ways to organize and deliver the content customers want on their mobile devices.

This is certainly a true statement, however, unless Verizon begins to change their user interface to be similar to the type of experience users have begun to expect on their PC's, the above statement may cause more trouble for Verizon, than anything else.

Verizon is a Media Company

Just like Google, Verizon has become a media company. Verizon, however is not doing a great job of realizing their potential as such. There are many ways Verizon can expand their offerings online and in other channels, and create a more seemless, wholistic media experience for its users. It seems that Verizon is still largely stuck in their old service model; and in this model, Verizon will not be able to survive as a media company.

It will be interesting to see how this deal effects Verizon's business model.
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