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SIMs at the center of the battle

Week 47, 2010

Starting from this point, we all witnessed the so-called rumor about Apple and Gemalto working together on a potential embedded SIM function in a handset that would allow Apple to sell its iPhones independently from the mobile network operators (cf. Smart Insights Weekly #10-44).

Now, the SIMalliance, an association made up of the world's leading SIM card manufacturers, has issued a detailed statement to defend the role of the physical removable SIM.

Just days later, the GSMA, an association uniting nearly 800 of the world’s mobile operators, launched what they call the “Embedded SIM initiative”, positioned to deliver technical solutions for Embedded SIMs. Cautiously, the announcement first targets the M2M market.

However, when the processes are ready and standardized to support embedded SIM functions in M2M modules, it will be difficult for the physical SIM industry to ensure no one in the ecosystem will be tempted to port the process to mobile phones and subscribers.

Thierry Spanjaard

Chief Editor

Smart Insights