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Thursday, September 13, 2018

Apple to push eSIM in its next devices, may be a concern for operators.



Apple could introduce so-called electronic sims, or eSIMs.   The classic SIM card is a small chip that's inserted into the phone manually — making it more awkward to change your mobile network provider. You have to go to a shop to get a new sim or have one delivered physically. The eSIM is virtual, meaning that just changing your phone's settings would theoretically allow you to switch carriers. 

Speculation about eSIMs has been rife since Apple complained to the U.S. Department of Justice that Verizon Communications Inc. and AT&T Inc. were colluding to prevent their introduction.

It's almost certain that this would accelerate price competition. Whenever it's made easier to jump from one operator to another, consumers take advantage and seek better deals. "Churn," the industry term for customer losses, spikes. That's what happened, for example, when Spain brought in rules to cut the time it took to change network operators to less than 24 hours.

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