Mobile Broadband Choices

Yesterday it was rumours of a Nexus Two launch, and today the tech-blog rumour mill is at it again - this time with reports that one of Apple’s future iPhones will be network agnostic.

The report originated on GigaOm in an article which suggests that Apple is looking to cut out the carrier, by producing a special SIM card which would not be tied to a single network. The SIM card, allegedly being created in conjunction with digital security company and SIM-card manufacturer Gemalto, would most likely be integrated into the phone’s hardware, and would allow users to connect to a network of their choosing.

The idea is said to be aimed predominantly at Europe, where the sales relationship between iPhone and network is not at tight as it is Stateside; and important bods from European telecoms companies are believed to have visited Apple to discuss whether they would allow such a device to operate on their networks.

Apple, of course, has had nothing to say in response to the rumours, but the theory is that the company is trying to cut the telcos out of the device retailing business,  by enabling users to choose their network when they purchase the device directly from Apple. Google’s recent attempt to sell a device direct to the public was not a spectacular success, and analysts are suggesting that the agnostic SIM is Apple’s attempt to make the direct sale easier.

However, as The Reg points out, the reason the public don’t buy premium handsets direct from the supplier most likely has more to do with operator subsidies than with the tricky business of finding a network after you’ve purchased the handset. With iPhone prices coming in at over £600 without subsidies, how many would-be iPhone owners will be able to afford the upfront outlay to buy from Apple, even if they wanted to?