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Microsoft’s latest attempt to get noticed in the mobile space can spell goodbye to long term network contracts

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Microsoft Corporation (NASDAQ:MSFT) has long lurked in the shadows of Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOG) in the smartphone industry. However, it appears the company is ready do give its all in a bid to get noticed. We take a look at recent reports which claim that the company is now planning to adopt a strategy which revolves around the manufacture of its own specially designed SIM cards.

Ever since the company struck a deal with Finnish company, Nokia Inc. (NYSE:NOK), its smartphone business has fallen to depths not many had expected. With the partnership now over and the company pursuing a change in policy by pushing forth its own manufactured smartphones, Microsoft might be heading toward a new era of mobile devices.

The company recently launched its Lumia 950 and Lumia 950XL, two flagship devices which feature specs that could compete with any existing smartphone in the industry. While the company might be falling short with its Windows Phone platform, it is hoping to attract users towards its devices via a new strategy, one that involves SIM cards.

According to reports, Microsoft is currently testing a cellular data application which will allow Windows 10 running devices, including smartphones, tablets and other devices, to connect to different mobile networks without a contract. Such a move requires the company to manufacture its own SIM cards, something that will make access to LTE far easier for users.

Although the application has been published on Microsoft’s Windows Store, the company is yet to confirm its plans regarding the service. The application can’t be downloaded by users just yet, but we have enough clues to figure out what to expect from it.

The application which is listed down as Free is called, “Cellular Data” and is only compatible on Windows 10 running devices that make use of a “Microsoft SIM Card”. According to details, we believe Microsoft is planning to create its own virtual mobile network which will allow users to connect to partner carrier networks.

For now, we are unsure of which partners will be on board with the new service, something Microsoft will need to focus on if it expects it to be a telling feature, to attract users towards its Windows 10 Mobile.

According to reports, the application will allow users to stay connected wherever they go. Having access to Cellular Data courtesy of your Microsoft Account is quite a tempting proposition. The best feature about the service is that users will be able to pay for data using only their Microsoft account information, i.e. they will no longer have to rely on long term commitments to mobile networks.

Its not known yet which markets are likely to get access to the service when it launches. However, many believe the company will only initiate International Roaming after gauging its success in the domestic market. Although Microsoft has confirmed that payment would be done via users' accounts, pricing details of the service are yet to be released.

By the looks of things, Microsoft is focusing on the hardware aspects when it comes to its smartphone business. While the manufacture of SIM Cards and provision of widespread access to Cellular Data will please many, the company needs to relay some focus onto its currently buggy Windows 10 Mobile.