The traditional relationship between manufacturer and network has had pretty clear dividing lines; one provides the hardware, the other makes the connection. Apple’s decision to include a programmable SIM card changes that, giving the manufacturer a more active role in connecting the customer. If this were to take off, manufacturers would be able to leverage popular handsets against the networks’ need to offer them. That said, Apple didn’t have much to lose in putting the ‘soft SIM’ in an iPad because tablets are not products predominantly sold with a reliance on subsidies from networks, whereas an iPhone is. Whether manufacturers choose to pursue a ‘soft SIM’ strategy with contract-driven devices will be the critical factor. Although as Phil Kendal, director global wireless practice at Strategy Analytics says, the potential shift in the dynamic is clear to see: ‘It certainly diminishes the strength of operators in the overall value chain. It’s good news for consumers and puts the operators on a little bit of the back foot. The devil is in the detail, it really depends on what the devices are. The reality of the tablet space is that consumers are not buying 3G and 4G tablets from operators. Already the power to some extent is in the hands of the consumer. The ‘soft SIM’ will give the customer a greater ability to churn through providers. The operators will have to come to an agreement with the manufacturers to be one of the options available to customers using a soft SIM device.’