Stacey Higginbotham (no relation to Michael Hickenbottom) at GigaOm snagged a fantastic scoop on Apple working with Gemalto on future iPhone SIM-card technology. The two companies are working on making the iPhone experience easier for customers while keeping carrier involvement to a minimum. Here are the details:
It’s rumored that Apple and Gemalto have created a SIM card, which is typically a chip that carries subscriber identification information for the carriers, that will be integrated into the iPhone itself. Then customers will then be able to choose their carrier at time of purchase at the Apple web site or retail store, or buy the phone and get their handset up and running through a download at the App Store as opposed to visiting a carrier store or calling the carrier. Either way, it reduces the role of the carrier in the iPhone purchase.
Before you get too excited, keep in mind that this is aimed (initially anyway) at European customers. Unlike the American market, the mobile frequencies used in most European countries are the same. Furthermore, there’s a lot more country hopping in Europe, so it would be super convenient for customers to be able to change carriers through a simple iTunes download.
The tech has all sorts of implications. Apple is very proud of the experience it offers through the Apple Store. As far as retail experiences go, it beats the crap out of an AT&T store. This technology makes carrier stores unnecessary at best and a minor nuisance at worst. Although the tech is being aimed at the European market, there are radio chips that can handle various types (GSM and CDMA) and frequencies of mobile signals, so it’s a possibility for America as well.
Lastly, the technology has the chance to help Apple succeed where Google wussed out with the Nexus One. Although Apple is making a killing through AT&T, the structure of that relationship will change as it moves to other carriers. I’m sure Apple is concerned about the various (crappy) experiences offered by the “big four’s” retail stores. This technology would eliminate their involvement or keep it to a minimum.
I really hope this technology comes to America. The carriers have way too much stroke here and disruption is overdue. The technology being worked on by Apple and Gemalto has a chance to drastically change the market and, hopefully, make it more competitive. Or perhaps I’m being wishfully naive. What do you think?
I like the direction. Could be a reality once LTE is here. Unless the carriers keep voice on their 3G networks too long to impede something like this.
Yeah, the tech could work next year with the two GSM carriers. CDMA is another question.
i can't believe i missed the HBK reference in the beginning of this story when i first read it last night. you're such an HBK mark.!