Mobile Europe – The humble SIM soldiers on, amid fear and hope
“The industry still runs off legacy systems, built in times of growth. The reason operators have these high costs is because of these legacy systems and, sometimes, legacy people. The SIM card is an example of that,” says Bengt Nordström, Chief Executive at telecoms consultancy Northstream.
The annual cost of SIM cards to the industry is around €15-€20 billion per year, reckons Northstream, based on a fee of €3-€4 per SIM for hardware, logistics and provisioning and 2013 shipment volumes of nearly five billion. “That’s just the direct costs. If you consider the indirect costs associated with ordering and customer care that figure might easily double,” says Nordström.