Reports have been floating around suggesting that Apple is looking into developing built-in SIM cards for their iPhones. These chips would be programmable, and would require even less direct interaction with the carriers themselves. Late last week the GSM Association announced that they are launching an investigation on how this technology could be adopted hopefully bringing the technology to market by 2012.
The GSMA today announced the formation of a task force of mobile operators to explore the development of an embedded SIM that can be remotely activated. The move is expected to enable the design of exciting new form factors for mobile communications. It will also speed the development of M2M services by making it easier to bring mobile broadband to non-traditional devices such as cameras, MP3 players, navigation devices and e-Readers, as well as smart meters.
So, the GSMA appears to be on board with the idea. What about the carriers? Well, the Financial Times reports that they aren’t as thrilled with the idea.
The operators are privately saying they could refuse to subsidise the iPhone if Apple inserts an embedded subscriber identity module, or Sim card.
The operators are accusing Apple of trying to gain control of their relationship with their mobile customers with the new Sim. The technology could allow customers to buy the iPhone and sign up for service on Apple’s website and start using it immediately.
Closer to the operators’ hearts, it could allow customers to switch more easily from one to another or insist on shorter-term contracts. It could even set the stage for Apple to resell connection service on its own, although the company has not indicated such plans.
The Street in turn has reported that Apple has supposedly already backed down for the time being, and is not pursuing this technology for the time-being.
“Apple is relenting,” said Rodman Renshaw analyst Ashok Kumar. “They are now completely backing away from their plan to take the carrier out of the equation,” said Kumar, who discovered the change in plan after talking with Apple suppliers and manufacturing sources.
In sum, it sounds like this will happen, it’s just a matter of time. The GSMA wants to make sure everybody is on board, and their concerns addressed before a new built-in standard is set into motion.
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