The “SIM” in SIM card stands for “Subscriber Identity Module”. It is a chip which stores a international mobile subscriber identity (IMSI) number, along with an encryption key. These allow a cellular network to identify and securely communicate with individual users as determined by their SIM cards.
Without such a card it would be difficult if not impossible to charge for access to their cellular networks, or to be sure where to properly direct calls and to know who is making them. Associating a SIM card with a particular account with a cellular provider allows them to know what kind of service you did (or didn’t) pay for and to charge expenses to the proper user.
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