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SIM CARD
A Subscriber Identity Module (SIM) on a removable SIM Card securely stores the service-subscriber key (IMSI) used to identify a subscriber on mobile telephony devices (such as computers and mobile phones). The SIM card allows users to change phones by simply removing the SIM card from one mobile phone and inserting it into another mobile phone or broadband telephony device.

SIM cards are available in two standard sizes. The first is the size of a credit card (85.60 mm × 53.98 mm x 0.76 mm). The newer, more popular miniature-version has a width of 25 mm, a length of 15 mm, and a thickness of 0.76 mm. However, most SIM cards are supplied as a full-sized card with the smaller card held in place by a few plastic links and can be easily broken off to be used in a phone that uses the smaller SIM.

The use of SIM cards is mandatory in GSM devices. The equivalent of a SIM in UMTS is called the Universal Integrated Circuit Card (UICC), which runs a USIM application, whereas the Removable User Identity Module (R-UIM) is more popular in CDMA-based devices. The UICC card is still colloquially referred to as a SIM-card. Many CDMA-based standards do not include any such card, and the service is bound to a unique identifier contained in the handset itself.
Phones sold as pre-pay often also have an operator subsidy, especially in competitive mobile markets like the UK. These phones are sold not just through mobile phone stores, but also supermarkets, catalaogues, stationery outlets and online, and so the mobile companies are constantly in a race to the lowest price.

These prepay phones come with a bundled SIM, so the intention is that you should buy the phone, and then activate it using the SIM provided. Once again the handsets are often SIM-locked to make sure that you do not use another operator, so that the original operator will then eventually recoup their subsidy. However, because the units can be unlocked for a small fee (and even the operators themselves offer this service), units can be bought cheaply, separated from the original SIM-card and sold on for a profit, perhaps in other markets, perhaps as contract phone. This is known in the industry as 'box breaking', and often harms the profits of the operator while allowing complicit sales staff and box breakers to reap the rewards.