eSIM Technology Bringing Together IoT and Connectivity Suppliers

The Internet of Things (IoT) has almost limitless potential and usages in the telecom industry. It has numerous real-life applications, with breakthroughs that only increase that number. Not only the telecom industry, but IoT is also predicted to transform the future of business and society at large significantly.

IoT connects to a host of devices around you through sensors. It combines a device with the connectivity service provider to create a single integrated experience. A great way to see this in action is through eSIM cards.

An eSIM or ’embedded subscriber identity module’ is a small non-removable chip that comes with the mobile device you purchase. It has all the functionalities of a legacy SIM card along with additional ease of use. This eSIM is 1/100th the size of a regular SIM card. In phones that support this technology, you don’t need to add a physical SIM card. The integrated eSIM also stores your international mobile subscriber identity (IMSI) and the authentication key.

IoT and mobile to mobile (M2M) communication industry enterprises have advanced rapidly since their inception, but they’re still not quite there yet. They are looking at loftier goals and investments for newer technologies and innovations like the Embedded Universal Integrated Circuit Card (eUICC), also known as the eSIM.

Starting The IoT Journey

Some customers and connectivity service providers (CSPs) find it hard to adopt IoT technology and offer services. With all the noise around IoT, it is hard to figure out an exact starting point. To simplify this transition, CSPs and OEMs need to figure out how they can work together to provide greater value and add increased flexibility and simplicity to the business.

Many network operators and CSPs today are working efficiently towards integrating IoT-integrated products and services into their offerings. The main benefit of this journey and transformation is that the end customer finds it a lot easier to select and manage their connectivity.

The Challenge To IoT Adoption

By 2020, an estimated 50 billion devices will be connected via IoT technology. But the mobile phone landscape is not ready for it yet. The entire industry is designed to hard link one mobile device to a network provider through a SIM card. It has created a linear system dependent on these two components working together, obstructing the user journey.

SIM cards are one of the biggest roadblocks in this journey to a seamless connection. In this current market, eSIM technology lets you remotely switch your service provider, becoming the solution service providers needed.

Characteristics of eSIM Technology

An eSIM is easily reprogrammable and can support multiple profiles at the same time. It also gives users the flexibility to switch between operators very quickly, thus increasing competition in the telecom industry.

Some Characteristics of eSIM Are:

  • Form Agnostic: OEMs have started manufacturing a wide range of connected devices. For device manufacturers, SIM card size and the compatibility significantly affect the device’s design and manufacturing. With the smaller sized eSIM, this issue of size compatibility no longer exists. It encourages manufacturers further to create faster, smarter and more universally compatible devices.
  • Flexible Connectivity: A physical SIM is enslaved to its lock-in effect, which means it can only have a single operator at a time. eSIM cards come with a remote provisioning system, meaning they allow customers to download and install operator profiles via the internet. It enables users to manage multiple profiles simultaneously and lets them switch quickly and easily between network providers.

eSIM Technology in the Automobile Industry:

With GSMA releasing a standard approach for remote provisioning, businesses are now seeing a wider adoption of the eSIM in the IoT and other sectors. Today, eSIMs are being widely used in the automobile industry to provide a more connected experience on the road.

As connected cars become more mainstream, eSIM technology can empower OEMs to offer newer opportunities to simplify logistics and optimize costs. This is done through many forms and features such as connected apps, geolocation tracking, and store locators.

The Changing Role of MNCs in SIM Management

Along with its paradigm-altering implications, eSIM technology also comes with several challenges for MNCs and telecom companies. MNCs want to adopt IoT and are eager to explore business opportunities within and beyond this technology. At the same time, these organisations are afraid of losing direct access to their consumers and getting replaced by eSIM suppliers and subscription managers.

MNCs need to evolve in terms of their mobile VAS solutions and business models to stay ahead of the curve and maintain or gain an edge in this evolving industry. More specifically, they need to include IoT subscriptions to their service offerings to not lose out to other organisations that are more willing to evolve.

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