Linked by Thom Holwerda on Fri 19th Nov 2010 22:33 UTC, submitted by Governa
PDAs, Cellphones, Wireless Well, this is fascinating. There have been rumours going around for a while now that Apple is working with Gemalto on an integrated sim card, allowing customers to choose their own carrier and then activate the phone through Apple. European mobile phone carriers aren't particularly pleased with this.
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Headrush
Member since:
2006-01-03

This move by Apple would threaten the very core of the carrier's business model

I don't understand this, can someone explain this?

How is the SIM card being provided by the carrier vs Apple changing anything.
(Other then a customer likely to stick with same carrier since they have their SIM already.)

Reply Parent Score: 2

Neolander Member since:
2010-03-08

(Other then a customer likely to stick with same carrier since they have their SIM already.)

It's not quite that. If I understood this story well, we're talking about a sort of rewritable SIM card. Apple only has to remotely reprogram that card for you to switch from one carrier to another.

Reply Parent Score: 3

mrhasbean Member since:
2006-04-03

"This move by Apple would threaten the very core of the carrier's business model

I don't understand this, can someone explain this?

How is the SIM card being provided by the carrier vs Apple changing anything.
"

Presently telcos lock you in with their SIM for the period of the contract - the device is locked to their SIM. If you choose to switch carriers during your contract period you have to pay them an out fee to unlock your phone. This option would be like selling an unlocked phone that Apple could, upon request, move to a different telco. It's like going from and iPhone to some Android based phones, they both have lock-ins, it's the extent of the lock and who controls it that changes.

Reply Parent Score: 3

Headrush Member since:
2006-01-03

At least here in Canada still seems like they would maintain a fair amount of control with their normal 3 year contracts and high cancellation fees.

Reply Parent Score: 2

kaiwai Member since:
2005-07-06

Presently telcos lock you in with their SIM for the period of the contract - the device is locked to their SIM. If you choose to switch carriers during your contract period you have to pay them an out fee to unlock your phone. This option would be like selling an unlocked phone that Apple could, upon request, move to a different telco. It's like going from and iPhone to some Android based phones, they both have lock-ins, it's the extent of the lock and who controls it that changes.


New Zealand and Australia are two countries I know of which have contract phones but don't have SIM card locks - just because you have a contract doesn't mean that it has to have the SIM card locked because you're still going to have to keep paying the contract even if you destroyed the mobile phone or moved the sim from one device to another device. The idea that some how the business model is destroyed because of the lack of SIM lock in simply ignores how a contract operates and the fact that you keep paying regardless of whether you use *THAT* particular phone you pay for. If you want to get out of that contract then you have to pay to get out of it - normally paying the difference between the full price and subsidised price plus a small penalty.

Reply Parent Score: 2

Soulbender Member since:
2005-08-18

Presently telcos lock you in with their SIM for the period of the contract - the device is locked to their SIM


This is not about the North American market though.

Reply Parent Score: 2