eSIM to Revolutionize the Indian Technology Space

The SIM (Subscriber Identity Module), that most of us have been using in our mobile devices from many years now, has seen itself shrink from credit card size when it was created in 1991 to the Micro SIM and the Nano SIM. With the emerging new technology, the SIM threatens to shrink further and vanish altogether, at least in its physical form. eSIM ( embedded SIM)is about to replace the ordinary SIM.

Simply put, the embedded SIM or e-SIM is an evolution of the SIM card. It’s actually a SIM card, welded directly to the terminal during its assembly, and so is now inseparable from the terminal that houses it, whether it is a phone, watch, tablet, computer or connected object. The data from this eSIM can now be configured via a remote server.

Today, the eSIM is already being used in the Apple Watch Series 3, which was recently launched in India. The eSIM helps preserve the size and aesthetics of the watch and other wearables and devices. We can safely expect consumer electronics and industrial equipment manufacturers to follow the trend by embedding eSIM technology into a range of devices like fitness bands, portable health care systems or drones and so on.

eSIM makes every subscriber (within a geography) fair game for all MNOs. This means in large markets such as India, the concept of “local” and “regional” MNOs will become redundant. MNOs can target subscribers of any provider anywhere in the country with unique offers and packages. Subscribers on their part can choose a provider and instantly activate new services over-the-air. The change in business dynamics will force MNOs to provide innovative services with simple and engaging experiences that customers prefer.

With the rapid growth in IoT-enabled devices and machine-to-machine technology across industries, the value of an eSIM goes well beyond matters of size and aesthetics. Imagine a utility, a logistics provider or a manufacturer leveraging the IoT/M2M. These businesses have thousands of connected sensors and devices generating and transmitting data. When the business wants to change its network provider, it means changing physical SIM cards across thousands of sensors and devices – a harrowing and time-consuming task that can result in downtime. But eSIM technology changes that. A business can remotely send an over-the-air update to all devices and change the provider with a single keystroke.

The key reason why subscribers are reluctant to switch providers is the inconvenience of going to a store to get a physical SIM from the new provider. This is in addition to the downtime it may imply when switching from one provider and another. The eSIM eliminates these inconveniences, allowing the subscriber to switch providers based on merit and changing needs. In the eSIM era, subscribers will be able to painlessly switch providers based on cost, quality of service, product bundling, availability of service, and responsiveness of the provider.

In the short term, eSIM will create major disruption. Simultaneously, it will drive innovation that will help in expanding markets and boosting service consumption. The winners in the eSIM era will be those who forge new partnerships within the ecosystem and use them to disrupt the playing field with customer-focused innovation.

Indian Government through its Digital India initiative is actively pushing for the eSIM technology for all market segments. Eg: for transport segment, as part of AIS 140 standards all commercials vehicles have been mandated to be equipped with eSIM with more than 1 profile, with switching option.

Large no of Startups have emerged in the last one year who are working on innumerable use cases based on M2M/IoT technology . NB IoT is being developed at fast pace by the MNOs to cater to the large IOT requirements. Some of the key areas in which these start up are working are: Health care, Agriculture, Vehicle Tracking, Industrial Automation, Energy/Gas and water metering etc.

Industry 4.0 is being considered for the modern manufacturing units. Most of the ensors used by these solutions will be equipped with the sleek eSIM which gets integrated into the sensors. With all this it is very evident that in next few years eSIM is going to revolutionize the technology space.

By Deval Sheth, Managing Director, Giesecke & Devrient MS India Pvt. Ltd