Justice Department Probes U.S. Wireless Carriers' Work on SIM Card Alternative

By Drew FitzGerald and Brent Kendall

The U.S. Department of Justice is investigating whether U.S. wireless carriers and an industry trade group teamed up to make it harder for cellphone subscribers to switch providers, according to people familiar with the investigation.

The agency in February sent civil investigative demands to major U.S. wireless carriers and the GSMA, an international standards organization responsible for eSIM technology, the people said. The eSIM standard lets wireless subscribers move their phone number to a new carrier without having to remove a physical SIM card.

The department for more than a year has had its eye on the issue of SIM cards and phone portability, with a focus on the two largest carriers, AT&T Inc. and Verizon Communications Inc., though the February subpoenas represent a new stage of the inquiry, the people said.

A spokesman for London-based GSMA declined to comment. A Verizon spokesman confirmed the wireless provider has been cooperating with the department's probe for several months.

"The accusations regarding this issue are much ado about nothing," Verizon spokesman Rich Young said. "The reality is that we have a difference of opinion with a couple of phone-equipment manufacturers regarding the development of eSIM standards. Nothing more."

News of the recent probe was first reported by the New York Times.

Write to Drew FitzGerald at andrew.fitzgerald@wsj.com and Brent Kendall at brent.kendall@wsj.com

(END) Dow Jones Newswires

April 20, 2018 18:13 ET (22:13 GMT)

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