[droopybuns]

OEM software quality is so diverse that they can't be trusted to execute something as sensitive as identity.

It also is a classic telco hedge.

Step 1) We need towers to make this thing work. Let's build towers.

Step 2) These towers are super expensive and make the expense amortization complicated. Let's sell the towers and then lease from the buyer.

Step 3) oh crap. There is no encryption and people are cloning handsets. Let's use SIM cards to separate sensitive operations from the rest of the device.

Step 4) manufacturing sims is complicated. Let's buy sims from other suppliers and make them sign off on unlimited liability clauses if their identity solution is compromised.

It is all about two things: Preventing a single player from having too much power on the ecosystem and transferring financial risk. There is no evil plan. It's all rather mundane.