BT Group Raises Concerns Over Apple’s eSIM Technology in the U.K.

BT Group, the parent company of EE, the U.K.’s largest mobile operator, has raised a complaint against Apple, expressing concerns about the impact of eSIM technology on competition and its own business. The company has called on the Competition and Markets Authority (CMA) to investigate Apple’s use of eSIMs, claiming it could potentially harm the telecom industry by giving handset makers too much control.

In its statement to the CMA, as reported by The Telegraph, BT Group said:

“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 primary concern for BT Group is that eSIM technology could allow companies like Apple to bypass traditional carriers, weakening their role in the buying process. This could pave the way for Apple to create its own Mobile Virtual Network Operator (MVNO) services, further limiting competition and potentially shifting market power.

This complaint comes as the CMA continues its broader investigation into Apple and Google’s mobile ecosystems, which includes app stores and browser functionality. While eSIMs are not explicitly mentioned in the CMA’s current probe, BT Group believes this technology aligns with concerns about mobile ecosystem control and wants it included in the investigation.

Apple’s eSIM Push and the Potential Impact

Since 2022, Apple has transitioned its iPhone models in the U.S. to be eSIM-only, removing the physical SIM option entirely. In the U.K., however, the latest iPhone 16 models still include the choice of a physical SIM card. That said, rumors suggest the upcoming iPhone 17 Air may be eSIM-only globally, which could raise the very concerns outlined by BT Group if Apple eliminates physical SIM cards altogether.

eSIM technology does have its advantages, such as reducing a device’s thickness and simplifying carrier switching. However, not all U.K. Mobile Virtual Network Operators (MVNOs) currently support eSIMs, which could leave smaller players at a disadvantage compared to major carriers like EE. Ironically, EE itself launched an eSIM-only device—the Motorola Razr (2020)—exclusively on its network, reflecting the complex dynamics around this technology.

BT Group, which acquired EE in 2016, is advocating for regulators to take a closer look at the implications of eSIM adoption, particularly as Apple’s influence in the market continues to grow. If the CMA finds that Apple or Google are exploiting their positions, it could lead to changes that promote more competition, such as opening up app stores, modifying app functionality, or making in-app payments easier.

What’s Next?

As eSIM adoption grows, the debate over its impact on competition is gaining momentum. BT Group’s concerns, coupled with the CMA’s ongoing investigation, could shape the future of how eSIM technology is regulated in the U.K. Whether this results in stricter oversight or reshaped policies remains to be seen.