The UK’s largest mobile operator, BT Group, which owns the EE network, has filed a complaint with the Competition and Markets Authority (CMA) regarding Apple’s increasing use of eSIM technology. BT Group argues that Apple’s eSIM strategy could harm its business and stifle competition within the UK telecoms market.
The core of BT’s concern, as reported by The Telegraph, is the potential for Apple to leverage eSIM technology to bypass traditional mobile carriers and establish direct relationships with consumers. This “disintermediation” could allow Apple to introduce its own Mobile Virtual Network Operator (MVNO) services, effectively cutting out established players like BT Group. The complaint states: “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.”
This complaint coincides with the CMA’s ongoing investigation into Apple and Google’s mobile ecosystems, encompassing app stores and browsers. The investigation aims to determine whether these tech giants are abusing their market power. While eSIMs aren’t explicitly mentioned in the CMA’s official documentation, BT Group clearly believes the technology falls within the scope of the mobile ecosystem investigation and warrants scrutiny.
In the United States, all iPhone models since 2022 are eSIM-only. While the latest iPhone 16 models in the UK still offer a physical SIM card option, there is speculation that Apple may transition to eSIM-only devices in the future. The rumored iPhone 17 Air, for instance, is expected to be eSIM-exclusive to achieve a slimmer design. A global launch of such a device could exacerbate the concerns raised by BT Group.
Although major UK carriers currently support eSIM technology, not all MVNOs do. Interestingly, EE, a subsidiary of BT Group, exclusively launched the Motorola Razr (2020) as an eSIM-only device. This move highlights the complex dynamics at play within the mobile industry as eSIM adoption grows.
The outcome of the CMA’s investigation and its potential impact on Apple’s eSIM strategy remains to be seen. If the CMA finds Apple to be leveraging its market position unfairly, it could mandate changes to the company’s practices, potentially impacting future iPhone releases and the wider adoption of eSIM technology in the UK.
The potential shift towards eSIM-only devices represents a significant turning point in the mobile industry, with potential ramifications for consumers and businesses alike. The CMA’s investigation will play a crucial role in shaping the future of eSIM technology in the UK.
