Verizon Hopes Hub App Store Will Generate Interest

Launched on Feb. 1, the Verizon Hub is a VoIP phone that Verizon designed in an attempt to reclaim some of the customers who are increasingly disconnecting landline service. The strategy to bring former landline users into the fold is to launch an Apple App Store-like feature for the Hub.

The Verizon Hub costs $199 to purchase after a $50 rebate with a reoccurring fee of $34.99, which would be added on top of any Internet service.

One immediate concern that potential customers might have about the Hub is that the phone itself is incompatible with non-Verizon services. That means that a Sprint or AT&T customer can't just plug in and start making phone calls.

Verizon is hoping to overcome some of the concerns that beset the Hub with the introduction of an application store that will enhance the functionality of the Hub.

John Gravel, a Verizon product manager, said that there is no release date for the Hub app market yet, but that customers can likely expect to see it later this year, Reuters reports.

Verizon is also working on a new prototype of the Hub that features a smaller, sleeker design and a cordless phone, according to Reuters. Additionally, the company is hoping that the addition of multitouch functionality may attract potential customers.

But Charles Golvin, analyst for Forrester Research, echoes the sentiments of many customers who have abandoned a landline in favor of using a mobile phone as their sole communication device.

"The first challenge is to explain to consumers why this is an improvement over a home phone ... why it is worth paying $35 a month on top of their broadband bill?" Golvin told Reuters.