BT urges competition crackdown to block Apple's stranglehold on smartphones
The operator has raised concerns that the rise of virtual 'eSims' that replace Sim cards could see smartphone makers tighten their grip on the market.
In a submission to the Competition and Markets Authority (CMA), BT said: 'We also 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.'
Physical Sim cards have long been a critical link between network operators and their customers. But the growth of eSims means BT and its rivals risk losing ground to the likes of Apple and Samsung, who are increasingly selling phones directly to consumers.
The threat is particularly acute as telecoms companies try to expand their offering beyond traditional mobile services, amid tough competition and shrinking margins.
BT, which is side-lining its brand in favour of EE, has outlined plans to start selling other products and services from fridges to insurance. It has also launched a new service and smartphone app, dubbed EE ID, in a bid to expand its customer base.
However, industry executives fear these efforts could be undermined as tech companies increasingly build a direct relationship with their customers.
Kester Mann, of industry analyst CCS Insight, said: 'One of the challenges is that network provisioning starts to become more remote, therefore there's less opportunity for operators to engage with customers, whether that's selling new products or getting a sense check on how they're feeling.
'It feels like it's another part of the journey that is cutting operators out the loop a little bit, so I think that's one of the reasons why they've been a little bit reluctant to embrace the eSim concept.'
In the most extreme scenario, companies such as Apple could use eSims to launch their own virtual mobile networks – similar to the likes of GiffGaff and Tesco Mobile – though analysts said this was unlikely in the near term.
eSims were not mentioned in an investigation into Apple and Google launched by the CMA last week, which focused on web browsers and smartphone app stores.
Apple introduced its first eSim iPhone in 2022 and all of its US devices are now eSim only, with a similar move expected in Europe as soon as this year.
BT is not alone in sounding the alarm over the rise of eSims. Virgin Media O2 has also raised concerns about tech giants tightening their grip on mobile markets.
In a separate Ofcom submission published in 2022, the company said: 'Increased competition may deliver short-term benefits to consumers of mobile services, but there are genuine concerns around the potential ability of big tech to leverage their strong position in the supply of operating systems and their control over their vertically integrated ecosystems in a way that undermines competition and delivery of good outcomes in mobile markets in the long run.'
Vodafone also has a team of people working to address concerns about the strength of big tech. However, industry sources cautioned that operators had lucrative partnerships with tech companies and were keen to maintain good relations.
Apple did not comment on the BT submission.
In response to last week's CMA investigation it said: 'Apple believes in thriving and dynamic markets where innovation can flourish. We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users.
'In the UK alone, the iOS app economy supports hundreds of thousands of jobs and makes it possible for developers big and small to reach users on a trusted platform.
'We will continue to engage constructively with the CMA as their work on this matter progresses.'
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Digital Trends
3 hours ago
- Digital Trends
A brief history of folding phones and why the best is yet to come
If you're a fan of the best folding phones like me, you'll know it's been a breakout year for the category. The new Galaxy Z Fold 7 caps a year of multiple releases that have all vied to solve the common complaints with previous folding phones and prove that they can be just as comfortable as a regular phone. Several folding phone makers have released phones to compete in a key metric: thickness, or, namely, the lack of it. The ultra-thin folding phones sub-category has had three competitors this year that aimed to be the world's thinnest folding phone, but only one of them also delivers the smartphone-like experience we've been waiting for. Recommended Videos This is just the seventh year of folding phones, but we've already reached the point where they feel just like a regular smartphone in the pocket. Yet, Apple is still to release the rumored iPhone Fold, and every Android phone maker will also be looking to release its best foldable phone as well. Here's a look at the brief history of folding phones, and why the best is yet to come. 2018 — 2020: The Initial Foldable Era This may be surprising, but the world's first folding phone was by a company most won't have heard of. We need to rewind almost seven years to 2018 for the first commercial folding phone in the form of the Royole Flexpai, which launched in China in October that year. It started at ￥8,999 ($1,250), but as we learnt, it didn't deliver on the true promise of the folding phone. The following year, Samsung launched — and relaunched — the Galaxy Fold, and just four days after its announcement, Huawei took to the stage to unveil the Mate X. One key difference? Rather than two displays, the main display folds around the phone, forming part of its back. The smaller bezels of the Huawei Mate X also hinted at an inevitable trend. The folding phone market features more than just book-style folding phones, and that year also saw the revival of the Motorola Razr on November 13, 2019. Six years later, the Motorola Razr Ultra 2025 is the latest in a long line of Razr flip phones to dominate the flip phone market. A couple of months later, in February 2020, Samsung unveiled the Galaxy Z Flip, and the true flip phone competition began in the US. While book-style folding phones have had considerable competition, the flip phone market has featured several attempts by Android phone makers to launch a flip phone, but with limited success. Despite more than ten brands attempting different flip phones, the market remains an oligopoly dominated by Motorola and Samsung. The book-style market, however, is very different, and the launch of the Galaxy Z Fold 2 in September 2020 saw Samsung adopt a full-screen on the front, a design language that has continued through to the latest iteration. It also featured improved durability with new Ultra-Thin Glass, a larger battery, and triple cameras. Most importantly, it was also the launch vehicle for Samsung DeX, which remains a key part of Samsung's folding phone experience. 2021 — 2023: A Defining Era 2021 and 2022 saw the foldable market explode, as Samsung released the Galaxy Z Fold 3 and Galaxy Z Fold 4, the latter the best Samsung fold until the Galaxy Z Fold 7. Meanwhile, Huawei released the Mate X2 in February 2022 with an inward folding design, similar to other folding phones. Xiaomi launched its first and second-generation Mix Fold folding phones, and Oppo and Vivo launched their first folding phones. 2023 ushered in several changes in the folding phone market that are still prevalent today. Samsung continued its annual release with the Galaxy Z Fold 5 and Z Flip 5 in August, Google launched the first-generation Google Pixel Fold, and Honor began its current focus on thin and light design with the Honor Magic V2. However, all were dwarfed by the OnePlus Open — also known as the Oppo Find N3 — which launched in December to wide acclaim. It was a breakthrough folding phone for that era, bringing a thinner, lighter design and a focus on a great camera and excellent battery life. The OnePlus Open remains a strong folding phone in the US, despite being two years old. It wasn't just the book folding phone market that saw a major change, as the Flip phone market underwent a large shift to the current big-screen era that we're now accustomed to. Ushered in by the Razr 2023 series — which features large front screens and the innovative Razr approach to the front display — even Samsung has had to adopt this trend with the new Galaxy Z Flip 7. 2024 — 2025: The ultra-thin era Last year saw the start of the current ultra-thin era, in which Honor, Oppo, and now Samsung are all competing. A year ago, the Honor Magic V3 became the world's thinnest folding phone at 4.4mm thick when unfolded. It retained that title until the Oppo Find N5 surpassed it in February 2025, measuring 4.2mm thick when unfolded. However, this didn't last, as Honor then launched the Honor Magic V5 a few weeks ago on July 2, 2025, and it measures 4.1mm thick when unfolded. A week later, Samsung cemented its place atop many global smartphone wishlists with the Galaxy Z Fold 7, which doesn't set a record for thickness, but does so for weight at 215 grams, three grams lighter than the Magic V5. Despite not setting a record, a thickness of 4.2mm when unfolded and 8.9mm when folded means it's the first folding phone to be indistinguishable from a regular smartphone. As I covered in our Galaxy Z Fold 7 review, the design has set a new benchmark for how folding phones should feel. The Magic V5 boasts the largest battery in this category and one of the best camera systems. Meanwhile, Google is set to announce its new Pixel 10 Pro Fold later this month. 2026 onwards: the iPhone Fold era? Of course, there's one major smartphone player still to make its foldable phone entrance: Apple. The iPhone Fold is rumored to launch in September next year, potentially enabling folding phones to reach escape velocity. The iPhone, the iPad, and several products since have proved that Apple's participation in a category is necessary for that category to reach its total addressable market (TAM). Samsung has been key to the success of folding phones so far, and devices like the Galaxy Z Fold 7 and Galaxy Z Flip 7 show that the company is still able to innovate. With Apple set to launch, Samsung likely to respond, and most other phone makers are likely to launch new folding phones in the wake of Apple's entrance, it's safe to say that the best is yet to come. In case it wasn't obvious, I can't wait!
Yahoo
6 hours ago
- Yahoo
A ton of Apple devices are on sale on Amazon right now — some of them are even at their Prime Day prices
Save up to $85 on Apple AirPods Pro 2, an Apple Watch SE, an Apple iPad Mini and more. Apple Watches, AirPods, iPads and other Apple gadgets rarely go on sale, especially outside of the Prime Day, Boxing Day and Black Friday periods. However, sometimes we get lucky with a rare (and random) sale on Apple devices, like today's sale on Amazon Canada. For a limited time, Amazon shoppers can save on some of Apple's best-known and best-selling devices, includes the aforementioned AirPods and Apple Watches. Some of these prices are as low as they were on Prime Day (score!), so it's a great opportunity to save if you had your eye on something from the Apple-verse. Keep scrolling to shop the deals.
Yahoo
6 hours ago
- Yahoo
Tim Cook Says Apple Could Buy An AI Company To Boost Apple Intelligence
During Apple's earnings call for the third quarter this week, the company's CEO Tim Cook revealed that Apple might acquire an AI company to boost its Apple Intelligence platform. Previous reports suggested the company could be eyeing Perplexity as the perfect partner. Compared to other major players, Perplexity AI would be the most reasonable platform to acquire. While it would likely mark the biggest acquisition Apple has ever made, as it's currently valued at $18 billion, it could make sense, as the company has struggled to keep up with the competition due to major delays plaguing Apple Intelligence and Siri. Interestingly enough, Beats has been Apple's best investment to date, as it paid $3 billion for the audio company back in 2014. Still, Tim Cook says the company continues to strongly invest in AI as Apple sees it as "one of the most profound technologies of our lifetime." To CNBC, Tim Cook said "We are significantly growing our investments. We're embedding it across our devices, across our platforms, and across the company." Read more: How To Control An iPad With Your iPhone Apple's Acquisitions In 2025 Unlike some of its most notable competitors, Apple hasn't made any ground-breaking acquisitions in the past year. That said, Tim Cook did note that Apple has scooped up "around" seven companies so far in 2025, but none had been "huge in terms of dollar amount." For instance, in late May, Digital Trends reported that Apple had acquired the video game studio RAC7. Apple's CEO also said the company is "open to M&A (mergers and acquisitions) that accelerates our roadmap." Considering how sluggish the output has been in recent years, and the number of promising projects that have been scrapped, this isn't especially surprising to hear. It's also worth noting that just because Apple acquires a company, it doesn't mean end users will see a change right away. For example, it took Apple a couple of years to integrate Dark Sky into the Weather app. More recently, the company purchased Pixelmator, and so far it's keeping the app as is, as it just added Apple Intelligence support for the editor. That being said, even if Apple acquired Perplexity AI today, we would likely still be at least a year away from seeing major changes on the Apple Intelligence platform. Read the original article on BGR. Sign in to access your portfolio
