SIM stands for Subscriber identity module, it is a technology which allows the mobile company to identify which Mobile Phone you're using. It is a very crucial step as SIM card acts as a secondary medium for transmission of data from the cell towers.
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When you turn on your phone with the SIM card inserted, your phone will pass your SIM card ID number along with an authentication key also found on the SIM card to your cell phone network provider, your network providers job is to then generate a random number and uses the key to form a new authentication number. The random number is then sent back to your phone.
The same method is done by your phone to generate the response number, if the two numbers match then your provider will instantly recognize and connect your phone to the mobile network. These steps although huge, is done by computers and happens within a few seconds.Also these security steps will ensure that it is your SIM card that is connected not anyone else's , as a particular SIM card can only generate a particular number.
Other than identifying information SIM cards can also store personal information and has a maximum storage capacity of 1 MB , this is pretty enough for storing about 100-250 contacts.
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