Carriers Threaten Apple Over Plans To Embed SIM Card In Future iPhones

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Last month we had reported that Apple is working on a programmable, custom-SIM card that could be embedded in future iPhones.

The SIM card solution designed by Spanish company Gemlato would allow iPhone buyers to select the operator of their choice while purchasing the iPhone. The embedded SIM would then be flashed with all information needed for it to function on the selected network. 

The governing body of the global GSM players, the GSM Association (GSMA) recently announced that a task force would be formed to find  out how such technology could be adopted. Representatives of various cellular networks have been asked to compile a list of requirements that they think would be needed to bring this proposal to fruition in a way that everyone stands to win. The deadline for this is by January 2011. If all goes well, we might see the embedded SIM laden iPhone by 2012.

Since the solution would reduce the relation between phone users, many felt that it would not be welcomed by most operators.

According to the Financial Times, several European carriers are against this entire idea. In fact, they have already (internally) threatened to withdraw subsidies on the iPhone if Apple does implement this technology on the future iPhone. The bone of contention for the operators is that Apple here is trying to “control” the relationship between the consumer and the network. As mentioned earlier, if this plan is implemented, people could buy their phones and sign up on the Apple website for their network of choice and start using the phone right away – without much involvement of the network.

Rodman Renshaw analyst Ashok Kumar claims that based on his sources, Apple has dropped its plans for now. Kumar reports:

"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.

What do you think about the embedded SIM cards? Tell us in the comments.

[via Financial Times]

Categories : iPhone 4 Problems, iPhone News

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20 Responses to Carriers Threaten Apple Over Plans To Embed SIM Card In Future iPhones

  1. Ash says:

    I like this idea, it makes it easier on the user, just a few clicks and choose a carrier of your choice… i really like this :D

  2. alexander says:

    i think no more unlock if this change makes it out!

  3. Z says:

    uh…then we hack the flash method. not that hard folks.

  4. Ben says:

    I hate this idea. When i go to Europe it costs me way too much to use Rogers, so while I'm there I switch out my sim for a local one. A lot cheaper then Rogers. I really hope they don't implement this into the iphone's.

  5. Tun Jie Tan says:

    Ya. No more unlocking. But think of the long term. Don't you find Apple fishy? First banning Flash on IDevices, now planning to ban Java. Then now planning to set up a embedded sim that manages the phone carriers through apple store. Don't you see the connection in all of this thing? Apple is trying to use its popularity to dominate the IT industry, first by trying to get rid of it's reliance on others. Apple is planning for world domination! Wake up Apple fans! Also, apple said only half the truth about Flash and HTML5. Check them out throughly before believing in what apple said. Apple don't lie to their customers , but only speaks half the truth most of the time. Don't get me wrong. I like apple's product. But I just hate to see people getting all arrogant and ignorant once they have become successful, they forgot those who had helped them achieve what they have now. Shame on you S.J.

  6. Scott says:

    This move is annoying enough to me that I'd consider dropping the iPhone altogether. One of the primary reasons I use a GSM carrier is that I can have and use several different devices on the same network. Without that I'd just go to a competitor.

  7. Vteckrr says:

    Sounds good?

  8. Roger says:

    How about make this optional, that way we can all get along?

  9. LP says:

    I totally agree with you, you can have a phone for everyday use, and one cheap phone for activities such as biking or something like that that can brake your phone…

  10. William says:

    What is bad idea? what if i am an traveller, how i support to use iphone while sim card is embedded?

  11. D3@tH says:

    really stupid…

  12. ... says:

    From what I understood of the idea is that the user will be able to change the embedded sim card info to suit his needs. And it'll be done true iTunes and not apple store. also in order for this to work the user will need to get the needed details from his GSM operator, or do you think apple will know what your number is just by your name?

  13. fas says:

    Apple is starting to loose it and becoming selfish.

  14. Nosferatu says:

    bad idea…what if your phone decides to have a hardware failure (like my first 3GS had)? You have no phone. With the SIM card I just popped it into my old Motorola while I waited for my replacement. Imbedded SIM card…bye bye phone until a new one. I think it's a terrible idea.

  15. newjazz11@hotmail.com says:

    ok! i am coming closer to the point of saying hell with apple! i've been loyal to there products for a long time and I generally like their products but they are going too far….time to switch to android!!

  16. mkimid says:

    I do not like this idea. Because of most of carrier will not support this concept. and, Phone will not have SIM slot also. If I want to use the other slot, How ?
    and, I am traveling over couple of country, such as China, India, Germany, France ?
    How I can change without computer or the other way ? There are so many problems.

  17. mk says:

    apple dont want to leave any changes of making money.

  18. rishi says:

    one way – its safe for user. stealing would be reduced or nill.

    other way – difficult for user to change sim cards of a new location as there is no provision of inserting a new sim of choice / unlocking.

  19. nik says:

    dumpest idea ever. so, if i wanna change provider, i have to change phone? if my phone dies, i have to get a replacement to be able to use my number? embedded sim = 0 value for selling. i cant believe jobs is such retard. embedded sim would closed down apple for good.

  20. Now What says:

    Very well said bro!

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