UK mobile operators are threatening retaliation if Apple decides to build Sim cards into future iPhone models, according to a Financial Times report.
Citing sources at Telefónica, which owns O2 and Orange, and France Telecom, which owns Vodafone, the Financial Times claims the operators had warned that they could refuse to continue subsidising the iPhone if Apple goes ahead with plans first revealed last month.
The operators are concerned that by integrating Sim technology, Apple would wrest yet more control over the handset. It would also make it much easier for users to switch networks, which could force the operators to offer shorter, less-lucrative contracts. Refusing to subsidise handsets would help to make up any revenue shortfall.
Built-in Sims would also allow Apple to increase its income by selling more phones directly to customers. However, it would still need the operators to allow the phone’s Sim to connect to their networks, which is far from guaranteed, if the Financial Times report is correct.
Apple and the operators mentioned in the report declined to comment.
