Apple in hot water over adoption of new connectivity tech
A complaint against Apple has been raised in the U.K. by industry giant BT Group, where it has voiced concerns over the company’s use of eSIM technology, claiming it could hurt its business and stifle competition. The BT Group, which owns the EE network, the U.K.’s largest mobile operator by subscribers, told the Competition and Markets Authority (CMA) according to a report by The Telegraph:
“We encourage the CMA to consider the risk of disintermediation in the telecoms industry with respect to eSIMs, which is an additional area where handset providers could exercise their strong market position.”
The BT Group’s concern is it may be forced out of the buying process by brands like Apple using eSIMs to build a stronger, direct relationship with buyers, and potentially introduce their own Mobile Virtual Network Operator (MVNO) services. The complaint follows the CMA’s launch of an investigation into Apple and Google’s mobile ecosystems, including app stores and browsers, to establish if either are abusing their market power.
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Should the CMA find Apple or Google are exploiting their positions, potential alterations may be required to open up app stores and app functionality, and make it easier to pay for services in an app. While eSIMs are not mentioned in the CMA’s documentation, the BT Group clearly feels it fits with an investigation into mobile ecosystems, and wanted to make sure the technology wasn’t overlooked.
Since 2022 all Apple iPhone models are sold as eSIM-only in the U.S., but in the U.K. a physical SIM card is still an option on the latest iPhone 16 models. However, Apple may change this in the future,. For example, the rumored Apple iPhone 17 Air is expected to only support an eSIM, which will assist in reducing the device’s thickness. If the device is to launch globally, it may introduce the scenario concerning the BT Group.
All the major carriers in the U.K. support eSIM, but not all MVNOs do. Interestingly, and perhaps somewhat ironically, when EE exclusively launched the Motorola Razr (2020) it was an eSIM-only device. The BT Group acquired EE in 2016.
