Remote SIM plans could weaken carrier control

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Remote SIM plans could weaken carrier control

Cellcos join GSMA initiative, as new devices make a change in their role inevitable

By CAROLINE GABRIEL

Published: 18 November, 2010

READ MORE: GSM Association | SIM | M2M | iPhone

The GSM Association has set up a taskforce to create rules for a new breed of SIM cards that can be embedded in any mobile devices and activated remotely. These cards have the potential to cut the carrier out of the picture by allowing retailers or other parties to activate wireless devices. But while their adoption by the carrier association may look like turkeys voting for Christmas, it is a necessary step in a world where there will be a huge upsurge of embedded devices, many of which carriers will not want to control.

For instance, utilities will be the logical parties to activate the SIM cards in smart meters. But of course, the changes would help hasten the open retail model, much advocated by Intel, Google and other players trying to disrupt the traditional cellco status quo. In the retail approach, espoused to some extent by Clearwire, devices can be bought from any source and run on any network.

Recently, Apple was reported to be working with Gemalto on the kind of programmable, remotely activate SIM card the GSMA is suggesting. This would allow an iPhone to be activated via iTunes or an Apple Store, for any operator network. GigaOM point out that, in the past, GSMA rules would have made this system hard to achieve, but it now expects products with these SIMs to be available by 2012, and to complete its rules as early as January 2011. However, it is not clear whether it will allow the IMSI (International Mobile Subscriber Identity) number to be changed remotely too, which would make it possible for a body such as a utility to switch to another carrier without replacing SIMs.

In its statement, the Association said: "The GSMA today announced the formation of a taskforce of mobile operators to explore the development of an embedded SIM that can be remotely activated. The move is expected to enable the design of exciting new form factors for mobile communications. It will also speed the development of M2M services by making it easier to bring mobile broadband to non-traditional devices such as cameras, MP3 players, navigation devices and e-readers, as well as smart meters."

Taskforce members include AT&T, China Mobile, Deutsche Telekom, France Telecom Orange, KT, DoCoMo, SKT, Telecom Italia, Telefonica, Verizon Wireless and Vodafone. Many of these carriers are particularly interested in the expansion of the SIM card to include new functions, notably an integrated NFC chip to support mobile payments via swipe readers.