Cellcos warn Apple on embedded SIM plan

Dylan Bushell-Embling
telecomasia.net
Major European operators may refuse to cut iPhone subsidies if the handset firm presses on with plans to sell phones with an embedded SIM.
 
Vodafone, France Telecom and Telefonica have privately expressed concerns over Apple's rumored efforts to develop a smart SIM integrated into the iPhone, allowing buyers to choose a carrier at the time of handset activation, FT.com reported.
 
One senior executive said Apple risked a “war” in Europe over the new activation model.
 
Operators fear the move would prompt a spike in customer churn as it eases the process of migration, and would lead to a decline in the duration of telecom contracts.
 
Such a model would even allow Apple to enter markets as a connection services reseller with an inbuilt competitive advantage, the sources said.
 
Global iPhone sales could fall by up to 12% if European operators refuse to subsidize purchases, according to analyst firm Bernstein.
 
Apple has not publicly commented on the SIM project, but sources within multiple European operators have reportedly said the company is working with smartcard developer Gemalto to develop the chips.

MORE ARTICLES ON: AppleEUFrance TelecomGemaltoiPhoneTelefonicaVodafone

Commentary

5G and data center-friendly network architectures

Matt Walker / MTN Consulting

Webscale and transmission network operators' interests are aligning as the 5G era dawns

Matt Walker / MTN Consulting

Webscale and transmission network operators' interests are aligning as the 5G era dawns

Rémy Pascal / Analysys Mason

The launch of 5G by South Korean operators serves as a first benchmark for other operators around the world