Internet of Things (IoT) devices rely on cellular data connectivity to fulfil their function. These include connected vehicles, smart metres, security devices, GPS trackers, security cameras, drones, healthcare devices, robots, street lights, smartwatches, and wearables.
IoT devices vary greatly in complexity, capabilities and system requirements. Some have wide screens and accessible interfaces, while others are constrained in screen size, storage, memory, power, bandwidth capacity, and communication protocols. All these variances are pushing the demand for innovative SIM solutions, as traditional SIM card options face limitations in efficiency and scalability.
The emerging eSIM specifications tailored for IoT — particularly SGP.31 and SGP.32 — aim to address these challenges and provide a better fit for modern IoT deployments.
The New eSIM for IoT Specifications
The IoT-focused eSIM standard is designed to support a broader range of devices and deployment scenarios, including constrained devices. It provides a simpler and more secure method for over-the-air (OTA) profile provisioning and management, which is crucial for IoT devices operating across different geographic regions or in remote, hard-to-reach areas.
The new standard has several advantages over the traditional M2M specification, enabling more efficient device management and security features essential for IoT environments. Some of the essential improvements include:
- Enhanced OTA provisioning: The new IoT eSIM specification simplifies the OTA process, enabling quick and seamless profile management and updates across all devices. While the M2M eSIM follows a push model, the IoT eSIM enables both the push and pull models. The eSIM for IoT specification has an eSIM IoT remote manager (eIM) component that ensures enterprises can push updates in bulk to their IoT devices and queue operations for out-of-range devices so they can pull the updates themselves when they come back within range.
- Usability across various devices and industries: The new eSIM IoT specification can be used with different devices, enhancing its value proposition for IoT deployments across various industries.
- Compatibility with constrained IoT devices: The new specification expands the available application layer protocols for profile delivery, making the eSIM for IoT standard usable even for constrained devices.
- Security and data privacy improvements: Cyber threats are constantly evolving. The new specification introduces enhanced encryption mechanisms and secure communication protocols, ensuring that data privacy and security are maintained across the lifecycle of IoT devices.
The market is highly optimistic about the potential of the emerging eSIM for IoT standards. Juniper Research predicts a growth of 680% in IoT eSIM connections between 2024 and 2028.
eSIM for IoT: Addressing the Gaps of eSIM for M2M
Why did GSMA develop the eSIM for IoT specifications when an eSIM standard for machine-to-machine devices already exists? The M2M eSIM standard falls short of addressing the complex requirements of modern IoT networks.
The traditional M2M specification was created to support machine-to-machine communication. It is not well-suited for dynamic IoT deployments that require frequent updates, adaptability and lifecycle management across multiple use cases.
For instance, the M2M eSIM must be configured with the correct subscription manager secure routing (SM-SR) credentials upon SIM card manufacturing. Thus, while the eSIM may store subscription profiles and may be remotely provisioned, the ‘hard-coding’, so to speak, of the SM-SR credentials into the embedded SIM means the M2M device is tied to the logged vendor.
Enterprises can, of course, still change operators later. However, first, there must be an SM-SR swap from the old to the new vendor. The complexity of this procedure discourages clients from changing providers. Therefore, the M2M eSIM standard is more effective than any contract at locking an enterprise client into a service agreement with a vendor.
In contrast, the eSIM for IoT specification combines data preparation (SM-DP) with secure routing (SM-SR) in the subscription manager data preparation plus (SM-DP+). Thus, no complex integration is needed between the SM-SR and SM-DP, shortening implementation times and reducing complexity.
Additionally, the new standard allows the use of a discovery server (SM-DS), which simplifies profile discovery. The eUICC on the eSIM can contact the discovery service to find alerts addressed to it and find the route to the correct SM-DP+ for profile updating and provisioning.
M2M standards were tailored for static, low-volume connections with relatively simple management needs. In contrast, the eSIM for IoT works on distinct devices with varying power, connectivity and management requirements.
The new standard is also designed to work with future technologies and network architectures, including 5G, making them more versatile for a broad spectrum of industries. This adaptability is crucial as the IoT ecosystem evolves and demands robust, future-proof solutions.
Unlocking Opportunities With eSIM for IoT
The introduction of the IoT eSIM specification opens up significant opportunities for mobile network operators (MNOs), original equipment manufacturers (OEMs) and enterprises looking to leverage the power of IoT.
MNOs can offer enhanced subscription management services to enterprises with large-scale IoT deployments. This reduces churn and enables MNOs to offer premium services tailored to enterprises’ IoT needs.
OEMs can develop streamlined and adaptable IoT devices. These can be as small as they need to be because power, size, bandwidth, memory, and other constraints do not matter with the new IoT eSIM. This encourages the production of innovative IoT devices with lower operational costs, improved profitability and a higher likelihood of market success.
Enterprises can readily deploy IoT applications using the wide variety of available devices. They are no longer constrained by connectivity options, as their IoT devices can be seamlessly and easily provisioned with subscription profiles as needed.
A Step in the Right Direction
The new eSIM for IoT specification addresses the limitations of existing eSIM for M2M standards. It is, therefore, a significant step forward in the widespread adoption of IoT solutions across various industries.
