Back to the eighties you go!
Folks too young or with short memories might not remember that we've been here before. Analogue mobile phones of the eighties/nineties were 'paired' with your initial network of choice without the need for a SIM. So far so good...
A couple of months/years into your service, and you wish to leave. You've either fallen out with your current provider over a billing/service issue, or you just spot a better deal elsewhere. And, now you've a problem... You're reliant on your existing service provider to de-pair the device. If they don't want you to leave, or are just cr@p at handling such requests, you're trapped.
The solution? Separate the service provider and the device, and allow them to 'talk' to each other via a universal piece of kit. The SIM card was born. Bliss.
Uh-oh. Where did I park my DeLorean?