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Apple new SIM becomes a test for operators [24X7 News Bahrain Online](24X7 News Bahrain Online Via Acquire Media NewsEdge) Apple SIM has a potential to fundamentally change the relationship between mobile operators and users. Making it easy for users to switch carriers and tariffs from a device user interface removes barriers to consumer switching, makes market competition more efficient, and places pressure on operator revenues and profitability, according to Ian Fogg, Head of Mobile Analysis at IHS Technology. The software-managed Apple SIM model moves Apple into a mediation position because for operators to be present on the Apple SIM, operators must negotiate terms direct with Apple, rather than offering their own carrier iPad SIM direct to any end user. With this initial iPad launch, Apple is testing the business model and technology of software controlled multi-operator SIM cards. If successful, Apple has a number of ways it will look to extend the Apple SIM strategy: Extend Apple SIM to the iPhone. IHS forecasts Apple will be the second largest handset maker by shipment volume in 2014. If Apple offers Apple SIM on the iPhone because of this scale it will have enormous impacts on the business models of mobile operators. Make Apple SIM the sole embedded SIM option on iPhone or iPad. Apple may choose to remove the SIM card slot entirely, and embed Apple SIM in future iPhones or iPads as the sole way to connect to mobile networks. In this event, operators will no longer be able to offer their own SIM cards to iPad or iPhone owners. Lock consumers more into Apple-brand devices. If users have an Apple SIM which either only works with Apple devices, or is non-removable, then it is much harder for users to switch to a Samsung, Sony, Huawei, or HTC cellular device because the user will need to source a new SIM card for their new device. This will reduce churn from Apple device ownership. Mobile operators' business models centre on the SIM card. It anchors the user into the carriers' billing system, acts as a source of identity, and is the security token which authenticates the user onto the mobile network. Yet for now, the impact of Apple SIM is modest because it is only offered on the iPad and not the iPhone which is Apple's key product for mobile operators. Near term, Apple SIM offers benefits for consumers and for Apple, such as greater consumer convenience when abroad, freedom of a carrier choice and make the purchase much easier for carrier iPad plans through Apple stores which at the same time could boost the volumes of cellular iPads, and in time iPhones, sold direct from Apple rather than through operator-owned retail channels. Apple SIM is the biggest strategic challenge to mobile operators for years. Like FaceTime, Apple is starting small, but just like Apple's VoIP efforts this is just the initial small step in a longer term Apple strategy. But all is not lost for telecom operators. Carriers still have a significant role in subsidizing expensive Apple hardware and marketing devices which will help in negotiations over Apple SIM tariffs. The tide continues to shift away from traditional telecom players into a new broader mobile market. In this new mobile and telecoms world, technology companies are increasingly the most significant companies in the value chain, even in core telecom services such as voice and messaging and now with Apple SIM in access and mobile broadband connectivity too. (c) 2014 Twentyfoursevennews.com. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |