The eSIM industry is rapidly evolving, reshaping how consumers connect their devices and how enterprises collect data and design business processes. A recent development, the publication of the new eSIM Internet of Things (IoT) specification by GSMA, makes implementing eSIM cellular connections possible even for constrained IoT devices.
Naturally, the continued evolution and adoption of eSIM technology by industries means valuable opportunities for network operators. As long as they are equipped and ready with advanced and agile eSIM management solutions, they can provide eSIM connectivity and related services and solutions to enterprises that need them.
To this end, it helps if network operators can provide eSIM services to different types of clients (consumers and enterprises) from a single dashboard. Ideally, their platform must allow them to add and manage various user types, sales channels, partners, enterprises, entities, and locations from a unified system. Additionally, they should take heed of industry trends, like these top three identified by Juniper Research in its whitepaper, Top Three eSIM Trends in 2023.
Integrated SIM or iSIM technology is poised to be the successor of eSIM, particularly in connected devices and IoT implementations. iSIM essentially adds the SIM to the device chipset.
This system-on-chip (SoC) integration eliminates the need for a separate SIM chip. A tamper-resistant element (TRE) within the SoC secures the integrity of the iSIM.
The eSIM is a piece of surface-mounted hardware, which means the eSIM chipset is soldered onto a device’s circuit board. It is a discrete smart card controller that supports flexible connectivity. eSIM can store multiple SIM profiles from various networks, so the eSIM device can activate whichever profile it wants or connect to the most robust local network.
iSIM provides benefits similar to eSIM, such as remote provisioning and management. However, the fact that it has been fully integrated into the device chipset means iSIM-enabled IoT devices can be smaller. iSIM also has greater power efficiency, translating to a longer battery life for iSIM-connected devices.
iSIM opens up a world of potential use cases in enterprises and industries. It can lead to faster rollout of 5G services as iSIMs can be used to authenticate connected and IoT devices in 5G networks.
Since IoT and other connected devices can become smaller and more efficient with iSIM, iSIM makes mass deployment of smart labels possible. Imagine supermarkets that automatically alert staff about stale products that need to be removed from shelves.
However, the journey of iSIM technology is not without challenges. The lack of an industry-wide standard is a significant hurdle. Manufacturers and operators are naturally hesitant to fully commit to iSIM technology.
That said, iSIM is extremely promising and should take off once GSMA releases iSIM-specific standards. Meanwhile, enterprises and industries must be content with using iSIM connectivity in closed-loop systems.
Trend # 2: A Pressing Need for IoT Security
Security is crucial in IoT. IoT devices often handle sensitive data and perform critical functions, so they cannot be vulnerable to data breaches, unauthorised access, and malicious attacks.
Without stringent security measures, personal privacy could be jeopardised, corporate data could be compromised, and the integrity of essential services, such as healthcare systems and utility infrastructures, could be undermined.
As IoT devices increasingly automate decision-making processes, a security breach could have dire consequences. In scenarios ranging from automated traffic control systems to personal wearable health monitors, security breaches could lead to real-world harm. Connected vehicles could cause or orchestrate fatal accidents. IoT telehealth devices could lead to critical malfunctions. Valuable operational data could be stolen from enterprises.
Currently, some countries are securing their IoT infrastructure by implementing IoT security regulations. This is far from ideal, as it can be expensive to implement and maintain. Another solution is to enforce cellular connectivity among IoT devices; cellular connectivity often comes with a strong layer of security. However, this is less than ideal for IoT devices that can’t connect to cellular networks.
The best solution for now, it seems, is the applet for secure end-to-end communication that can live in the eSIM or iSIM. This embeds IoT security in the device SIM and makes securing IoT devices more affordable to enterprises that use them.
Trend # 3: The Need for Plug-and-Play and Value-Added Services
Enterprises today demand automation and self-service in their IoT solutions, with eSIM technology at the forefront of this shift. Technically, enterprises could build their own eSIM platforms and negotiate their cellular connectivity plans with network operators, but why would they?
The former would take years. There’s also the complication of integrating their platforms with connectivity providers. The latter – especially for enterprises that operate globally – would mean negotiating with hundreds of providers and complying with complicated and disparate regulations.
These open up a whole world of opportunities for mobile network operators. They could become a one-stop solution provider for enterprises that need eSIM connectivity for their IoT systems. The following are some of the services operators can provide to enterprises:
● Ready-to-use eSIM management platforms
● Multiple vendor/tenant/channel orchestration
● Rudimentary verification and authentication services
● Premium verification and authentication services for data-sensitive applications
Network operators just need to ensure their systems allow for self-service so enterprise clients can enjoy exceptional flexibility, versatility and convenience.
eSIM: Opportunities and Concerns
According to the Juniper Research whitepaper on top eSIM trends, iSIM has excellent potential and could overtake eSIM, but only if GSMA publishes industry-wide iSIM standards. The whitepaper also emphasises the need for IoT security, particularly for an alternative that makes implementing IoT security practical and affordable for original equipment manufacturers.
More importantly, for network operators, the paper talks about how the evolution of the eSIM industry means opportunities for network operators. With the help of an eSIM provider, operators can orchestrate and manage eSIM connectivity for their enterprise clients and provide value-added eSIM-relevant services.
