GSMA Embedded Sim Market - Short-Term Growth Will Be Fueled by Wearable, Consumer Electronics and Internet of Things

Albany, NY -- (SBWire) -- 08/10/2017 --GSMA mobile operators have long relied on bundling smartphones with their services to grow their customer base and reduce churn. There are three stages in the development cycle of network operator. When smartphones were first introduced, operators have been able to tie customers into long-term contracts and locking smartphones to their networks. As smartphone adoption has increased with increased innovation, consumers have started to move towards SIM-only plans. These plans can be used in combination with consumers' current smartphones. This makes it easier for consumers to buy their mobile devices outside of operator channels. The potential take-up of GSMA embedded SIMs will share some key drivers with SIM-only growth, such as the consumer demand for service flexibility and the shift towards buying smartphones from retailers. However, eSIMs offer some new growth opportunities to operators.

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An e-SIM is an embedded SIM card, meaning that chips are embedded in mobile devices making configuration software-based that can work on any network. Rather than being locked to a specific network the SIM card can change network whenever customer wishes to do. A traditional SIM card is pre-provisioned with an operator profile while GSMA embedded SIMs are reprogrammable. The profile of a chosen operator is installed, activated or changed via an encrypted communication over a mobile or fixed network. GSMA embedded SIM is a vital enabler for Machine to Machine (M2M) connections including the simple and seamless mobile connection of all types of connected machines

Now that we are in the age of connected device and wearable, the e-SIM is going to revolutionise our devices. The SIM card is transforming from a plug-in hardware piece to a SIM that will be built into devices during production.

The introduction of GSMA embedded SIM deliver multiple benefits to customers: improved experience with greater flexibility, an increase in the number of connected devices and lower costs of connected products, easy to add to a data plan. For network operators, it can lead to reduction in SIM handling, integration and handling costs. At a minimum it will take some of the hassle out of changing networks, plans and devices. In embedded SIM, it is no longer required to wait for a new SIM card, request a PAC code and wait for device to change over, instead the move is requested and SIM card will automatically be set up on new network or plan. While moving to a new device it is simply required to register to account and it will automatically be set up with previous number and details. The latest version of the GSMA now enhance the flexibility for how mobile network operators and original equipment manufacturers (OEMs) do business in the future.

There are few reasons why e-SIM is challenging to the market. Embedded SIM depends on networks supporting it. If any networks do hold out, then the device will be unable to use them with an e-SIM. GSMA embedded SIMs will enable remote service provisioning and will allow the entrance of many new players, which may further weaken operators' relationships with their customers. For carriers, this technology presents both challenges and opportunities. The shift puts three profit streams at risk: handset sales, roaming fees and earnings from consumers to SIM vendors

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Short-term growth will be fuelled by wearable, consumer electronics and internet of things, but it would only be when e-SIM is widely adopted in the consumer handset market that sales will really take off. By adopting e-SIM technology sooner rather than later, mobile network operators can get opportunity to take a leading role in the IoT market.

The global market for GSMA embedded SIM market is segmented on the basis of application and geography. Based on the application, the market is segmented into mobile devices, wearable, smart appliances, data sensors. On the basis of geography the global market is classified into North America, Europe, Middle East and Africa, Asia Pacific and South America.