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October 17, 2014

Will Apple's New SIM Disrupt the Wireless Industry?

A subscriber identity module—or as we know it, SIM—is an integrated circuit that securely stores the international mobile subscriber identity and the related key used to identify and authenticate subscribers on mobile devices such as smartphones and tablets. It is also what identifies the carrier.

The little gold plated circuit identifies you as a subscriber on a particular carrier, and plugs into phones, tablets, and basically anything else with a cellular radio. Customers of GSM carriers like AT&T and T-Mobile have been using them forever, while CDMA carriers like Sprint and Verizon have started using them since switching to LTE networks.

Replacing a SIM card is not always an easy task some of the original mobile phones required a paperclip or something like it to open a tray holding the SIM card. Other models required removing the back cover, then removing the battery to access the card. As smartphones developed, each carrier had devices that would only work on their network.

This week, we were introduced to the next generation iPad Air from Apple. The newest tablet will ship with various new features such as the A8X chip, faster 802.11ac Wi-Fi and a fully-laminated display. These were all things mentioned during the unveiling however, there seems to be an addition that was not revealed during the presentation. The iPad Air comes preinstalled with Apple SIM.

According to the Verge, “Apple hates SIMs, and has hated them for as long as the iPhone has existed.” The Apple SIM will be recognized by wireless providers around the world. In the past, if you did not purchase your tablet from a provider, cellular enabled iPad models either shipped with no SIM, or the SIM of the dominant GSM-based carrier in a particular country.

Essentially, what this allows you to do is take the reprogrammable SIM to any carrier, switching networks and pricing plans simply using easy to use software. If you want to switch carriers, you would no longer need to purchase a new iPhone or iPad from that carrier, you can just reprogram your current device.

Users have always been able to insert a new SIM into their iPad when moving around, but the process has always been grueling experience. In addition, you generally lost the ability to start and stop data service from the tablet's settings menu. The Apple SIM should be the remedy that users who travel around the world have been looking for.

Is Apple trying to kill off existing provider SIM cards? In a statement Apple said, “The Apple SIM gives you the flexibility to choose from a variety of short-term plans from select carriers in the U.S. and U.K. right on your iPad. So whenever you need it, you can choose the plan that works best for you with no long-term commitments. And when you travel, you may also be able to choose a data plan from a local carrier for the duration of your trip.”

This is something that could definitely have an impact on the wireless industry. As of now, Apple has agreements with AT&T, Sprint and T-Mobile in the U.S. In the U.K. a joint venture between T-Mobile and Orange called EE will be your choice. All indications are that it will not be long before Apple has more participating carriers.

Unless you want to deal with multiple carriers, if you buy a smartphone or tablet you generally look for one that works on your carrier’s network. Imagine what it would be like if you could purchase your iPhone or iPad from anywhere that you wanted and when you turned it on for the first time you see multiple offers for your business from different operators.

It will be interesting to see how wireless operators deal with this. Is it something that they will embrace and work together with Apple on, or will it be something they try to eliminate? It would certainly give users the freedom they need to find a service that works well for them. It is also a great feature for people who travel regularly to different countries.




Edited by Alisen Downey


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