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AT&T May Lock iPhone Customers To Just The iPhone

Earlier this week we heard rumors that the iPhone may require special contracts. And then there were rumors that the iPhone might be available as a pre-paid device as well. Now it looks like the iPhone will not have a removable SIM card. Don't believe me? Then go to the forums. One of the big questions on Mac forums this week centers around the iPhone and its removable SIM card (or lack thereof). In the last few days many have suggested that the iPhone will be locked -- sending potential iPhone customers into a tizzy. Does this mean that the iPhone could be as locked down as a CDMA phone?

This issue has been burning in the Machead forums for months. When Jobs debuted the iPhone in January, we were told that the iPhone would have a slot for the SIM.

But since then, many insiders have speculated the SIM will be locked. Why? Well, the iPhone reportedly doesn't have a removable battery. If that's the case, then the SIM is most likely locked into the phone too.

Earlier this week The Boy Genius Report added fuel to the SIM fire:

2. There will not be an external SIM slot, contrary to the announcement at MacWorld stating that the phone would have a SIM slot at the top of the device.

3. The battery will be next to impossible to remove, as there are no external latches, release buttons, or clips (but you already knew that, didn't you?).

One of the advantages of GSM devices (one might argue the only real advantage these days, given the lack of GSM 3G coverage in the U.S.) is that users can remove their SIM cards and use the same account on different phones. But if the iPhone doesn't have a removable SIM, then it's little better than a CDMA phone -- except unlike many CDMA phones, it won't have 3G.

This will also mean that any existing AT&T customers looking to buy the iPhone will have to get a new number and account for the iPhone -- or transfer their existing numbers to the device.

What a pain. Customers on CDMA carriers like Verizon Wireless and Sprint are used to this, but GSM customers are not. In fact, many wireless geeks prefer GSM for exactly this reason -- it gives them greater device flexibility. Without that flexibility, the iPhone will have less appeal. Or will it? What do you think? Could the lack of a removable SIM card hurt the iPhone? Or will it even be an issue?

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