The GSM Association is looking in to the idea of using embedded SIM cards in mobile phones beginning sometime in 2012. The new embedded SIM cards will be capable of being activated by software which means that one SIM card can be activated on any GSM network when the phone is purchased.
This follows on from what Apple [AAPL] is believed to be doing in their collaboration with Gemalto. Although the idea is good in some ways, ie, you don’t need to worry about a SIM card, it potentially will lead to a whole host of problems for users.
Problems we see arising include the lack of ability to switch to a foreign SIM card whilst roaming in another country. Also, you might be locked to the same carrier for the whole term of your contract and might lack the ability to disconnect your contract from the phone. Normally you just take your SIM card out and put it in another phone. Now it seems that you’ll be stuck with a particular phone for 18 to 24 months.
The problems it could create are for customers only as the carriers will then get loyal customers who are forced to be loyal. However, before getting all worried about it, we first need to wait for official details on how all these technicalities will be handled.
Via: Engadget
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