In this age of globalization, it’s very important to produce products that can be user globally and not constrained to local markets (even if the primary market is the USA). According to Wall Street predictions, so-called BRIC countries (Brazil, Russia, India and China) will overtake the United States within the next decade or so in terms of purchasing power. Certainly these countries will be very significant to the bottom line of any corporation trying to compete on global scale. Apple is taking note of this – and the result is the new iPhone -- a GSM-based (Group Special Mobile) phone loaded with tons of features that go far beyond those of ordinary cell phones. Most of the cell phones and networks in the USA are CDMA-based, which makes it impossible to sell to a World Wide audience, since the rest of the world is running on GSM networks. According to Wikipedia, “GSM service is used by over 2 billion people across more than 212 countries and territories,” a fact which certainly had an impact on the design of this revolutionary new phone.
In addition, one of the most notable features of GSM devices is the Subscriber Identity Module (SIM) or also known as SIM Card, which is removable smart card used in a smart phone. This SIM Card contains such information as user subscription info, as well as the user contact list. The advantage of the detachable SIM card is that the phone user can retain his or her information even if he/she decides to switch devices. In addition, the smart phone can be used interchangeably by various people, while maintaining personal preferences and contact lists, as long as each user’s personalized SIM card is inserted. This is an important reason that GSM phones and networks are popular among travelers who don’t want to purchase a new phone when traveling from country to country – it’s enough to purchase a SIM card from one’s local wireless network provider in order to re-use your GSM compatible iPhone virtually anywhere in the world.
GSM technology is also behind AT&T’s partnership with Apple. At this time, the iPhone is only functional using an AT&T wireless subscription. In fact, AT&T, a company that pioneered wireless connectivity in the USA, was among the first US-based companies to embrace GSM technology – and it seems that this strategy is now paying off. Apple signed a 5-year exclusive contract with AT&T Wireless to provide GSM Communication services for use with the Apple iPhone.
In brief, GSM was invented in 1982 in Europe in an effort to standardize various signals at a time when it was very difficult to establish cross-European phone services due to widespread use of various technologies. However, the first GSM network was launched only in 1991. Most GSM networks operate with 900 MHz or 1800 MHz bands.
Even though there are proponents of both systems out there and we all can argue that one is superior than the other, the fact is that 90% of the world’s population will be or is using GSM technology, making it the perfect choice for Apple’s iPhone. In addition to its GSM capabilities, the iPhone also supports the EDGE network, which is built exclusively by AT&T, featuring 802.11 Wi-Fi and Bluetooth 2.0.