Subscriber Identity Module - SIM and Carriers

SIM and Carriers

The SIM card introduced a new and significant business opportunity for MVNOs - mobile virtual network operators - who lease capacity from one of the network operators rather than owning or operating a cellular telecoms network, and only provide a SIM card to their customers. MVNOs first appeared in Denmark, Hong Kong, Finland and the UK. Today they exist in over 50 countries, including most of Europe, United States, Canada, Australia and parts of Asia, and account for approximately 10% of all mobile phone subscribers around the world.

On some networks, the mobile phone is locked to its carrier SIM card, meaning that the phone only works with SIM cards from the specific carrier. This is more common in markets where mobile phones are heavily subsidised by the carriers, and the business model depends on the customer staying with the service provider for a minimum term (typically 12 or 24 months). Common examples are the GSM networks in the United States, Canada, Australia, the UK and Poland. Many businesses offer the ability to remove the SIM lock from a phone, effectively making it possible to then use the phone on any network by inserting a different SIM card. Mostly, GSM and 3G mobile handsets can easily be unlocked and used on any suitable network with any SIM card.

In countries where the phones are not subsidised, e.g., India and Belgium, all phones are unlocked. Where the phone is not locked to its SIM card, the users can easily switch networks by simply replacing the SIM card of one network with that of another while using only one phone. This is typical, for example, among users who may want to optimise their carrier's traffic by different tariffs to different friends on different networks, or when traveling internationally.