Chatter about Apple using new embedded SIM cards in the next-gen iPhone has been rife for some time now. But now a source claims Apple has been stymied by the networks in its attempts to fully control how users buy and use the top-end smartphone.

Initial plans had suggested that the new embedded SIM cards would help Apple bypass the networks and let customers buy the phone without having to sign up to a lengthy contract. Punters could theoretically shop around on Apple’s store for the best deal using the open SIM. It would also mean roaming charges would be cut as users could choose a new package according to which country they were in.

However, networks have apparently reacted angrily, saying they were unwilling to cede such control to Cupertino. A “senior source” at one network told The Telegraph, “Apple has long been trying to build closer and closer relationships and cut out the operators. But this time they have been sent back to the drawing board with their tails between their legs."

But Steve Jobs hasn’t been totally thwarted. The iPad 2 is said to be coming with an embedded SIM, thanks to the fact it’s not available on subsidised deals.

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Via The Telegraph