The introduction of a new eSIM standard for IoT devices is set to trigger a fundamental shift of power in the connectivity market, making it far easier for enterprises to switch operators, negotiate better terms, and manage vast fleets of devices throughout their lifecycle.
That was the conclusion of a roundtable hosted by IoT connectivity firm Wireless Logic this week which heard that the new GSMA standard, SGP.32, which enables fleets of devices, from cars to medical devices, to connect online via eSIMs rather than physical SIM cards.
“We expect SGP.32 to reshape the dynamics between global MVNOs and traditional mobile operators,” Cyril Deschanel, Group Managing Director for Europe and the UK at Wireless Logic, said. “Operators will need to embrace flexibility. Those that do will benefit from the growth ahead. Those that do not may find themselves bypassed.”
Speaking at the event, Beecham Research Founder and Chief Executive Officer Robin Duke-Woolley said that the new standard not only made it far easier for fleet owners to negotiate better connectivity deals, but that it would also throw up new strategic opportunities for managing those fleets.
“SGP.32 moves eSIM management to another level. So instead of changing each individual SIM card as we’ve been used to, this is now managing it remotely, but it’s managing it at scale as well – and that’s the big difference,” he said. “That introduces all sort of management capabilities that haven’t been possible before and lots of flexibilities and it opens up cost control and energy management and so forth.”
However, Duke-Woolley cautioned that although the standard made it simpler to technically switch operator for fleets of IoT devices, the decision-making and paperwork involved in such moves was often more complex.
“It actually ends up being quite complicated. There’s an awful lot of enterprises out there who want to use this technology but they are not really set up to manage it,” he added. “They’re not in a good position to conduct negotiations with each individual network operator that they might use as part of their solution. They would actually probably prefer someone else to do that for them. So we see this more as a strategic opportunity.”
Beecham Research, predicts that the number of connected devices globally will climb from 3.9 billion devices last year to 7.2 billion by 2030, representing annual growth of around 11% as more and more industries find use cases in IoT. It expects a rapid increase in the numbers of connected cars, EV charging points, remote video surveillance cameras, bodycams, asset tracking tags, smart meters, and medical wearables.
Embedded Subscriber Identity Modules (eSIMs or eUICC) underpin much of today’s IoT. Like traditional SIMs, they store the credentials that identify a device to a mobile network. But, built directly into devices, they allow owners to change connectivity provider over the air — a process known as remote SIM provisioning. This process is governed by GSMA standards, and SGP.32 is the newest and most significant evolution for IoT.
Toby Gasston, Principal Product Manager at Wireless Logic added that he expected that the new standard would make it far easier for international IoT fleet owners to respond to regulatory changes around the world. He pointed to jurisdictions such as Brazil, Turkey and Singapore where governments limit the amount of time non-domestic SIMs are allowed to be operation. Under the new standard, he said, operators would be able to switch eSIMs remotely, allowing devices to automatically adopt local profiles when required
“SGP.32 means that we can now prepare devices for compliance, manage cost changes, and respond to performance issues more effectively,” he said. “Countries talk about this, and jurisdictions talk about it, and at least now it feels like we’ve got a way to deal with it.”
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