VietNamNet Bridge - Apple SIM is considered a technological breakthrough, but it could be an obstacle to mobile network operators’ business.

According to Apple, Apple SIM has been available in 140 countries throughout the world, including many South East Asian countries. But it is still not yet available in Vietnam.

Analysts commented that this is understandable, because GigSky, the major partner of Apple, is not present in Vietnam, while Apple has not officially cooperated with any Vietnamese network operators to provide the service. 

The number of network operators cooperating with Apple to provide Apple SIM is also modest, even though this is described as the technological breakthrough.

Apple SIM is considered a technological breakthrough, but it could be an obstacle to mobile network operators’ business.

Large network operators have their reasons to refuse Apple SIM. AT&T in the US once locked Apple SIM and did not allow its subscribers to shift to use the services provided by other network operators.

The fact that mobile phone users can switch back and forth among different telecom networks is good for users. They can choose network operators which offer better services and preferences, while Apple SIM is especially useful when traveling.

However, this won’t be good for network operators. It will increase the competition among network operators, because users may shift to another at any time.

Since Apple is the service provider which stands between network operators and clients, network operators will have to share profits with Apple.

Meanwhile, experts pointed out that Apple SIM can only be used for iPad to convert to 3G/4G data service, and not to iPhone, and it does not allow calls or messages.  

Mobile network operators without Apple SIM would be able to approach more potential clients, especially foreign travelers, who can easily choose network operators while there is no need to buy new simcards and follow complicated registration procedures.

The benefit is not great for large mobile network operators, but it would be attractive to small networks. Apple SIM would allow small networks to stand on par with well-known networks, and they don’t need to spend too much money on branding.

What will happen if GigSky brings Apple SIM to Vietnam? Large mobile network operators may lose a part of the market – foreign travelers. Meanwhile, there would be no change with domestic market share.

Analysts believe that they cannot see a high possibility of Vietnamese network operators cooperating with Apple to provide Apple SIM, because of the expected stiff competition in the market.

Tri Thuc Tre