# eUICC eSIMs perception Vs Reality: Mind the GAP!
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-07-18
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Unlocking the Potential of eSIM in IoT and M2M Communications
Meta Description: Discover how eSIM technology is revolutionising the IoT and M2M industries, offering enhanced provisioning and cost-saving opportunities for businesses
URL: https://financedigest.com/euicc-esims-perception-vs-reality-mind-the-gaphtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd180718-1-1736840294247-compressed.jpg)

**Ian Marsden,** CTO at Eseye

> Anyone connected to the Internet of Things (IoT) and M2M communications industries will be acutely aware of the levels of ambition and investment being set for the Embedded Universal Integrated Circuit Card, more widely known as eUICC, or the eSIM.

A 2017 report from [IHS Markit](https://www.mobileeurope.co.uk/press-wire/esims-to-approach-one-billion-shipments-by-2021-report-claims), for example, suggests that eSIM shipments will increase from 109 million in 2016, to 986 million by 2021. This growth will largely be driven by continuing IoT development, with eSIMs set to play a major role in ensuring the connectivity of billions of connected devices around the world.

The [automotive industry](https://www.financedigest.com/automotive-air-vent-assembly-market-size-key-players-growth-factors-regions-and-applications-industry-forecast-by-2027.html "Automotive Air Vent Assembly Market Size, Key Players, Growth Factors, Regions and Applications, Industry Forecast by 2027") is a prime example of a sector that has been keen to drive the technology forwards. With connected cars quickly becoming mainstream, the eUICC compliant eSIM has the potential to empower [manufacturers by offering new opportunities](https://www.financedigest.com/road-rail-vehicles-market-analysis-trends-top-manufacturers-share-growth-statistics-opportunities-and-forecast-to-2027.html "Road-Rail Vehicles Market Analysis, Trends, Top Manufacturers, Share, Growth, Statistics, Opportunities and Forecast to 2027") to simplify logistics and optimise costs.

But [industry ambition doesn’t stop](https://www.financedigest.com/carlsbergs-poland-unit-could-stop-production-lack-of-co2-threatens-food-industry.html "Carlsberg’s Poland unit could stop production; lack of CO2 threatens food industry") there. The eSIM is being hailed as the next evolution of the SIM card, prompting vendors, operators and service providers to trial new eSIM-based edge solutions in an attempt to secure their position in the huge and [growing global](https://www.financedigest.com/fish-based-pet-food-market-to-surpass-us-16213-2-mn-as-demand-for-pet-food-with-high-nutritional-value-grows-globally.html "Fish Based Pet Food Market to Surpass US$ 16,213.2 Mn as Demand for Pet Food with High Nutritional Value Grows Globally") cellular, IoT and device connectivity markets.

Clearly, there is plenty of optimism around the eSIM, much of which is based on some key [benefits being promoted by the IoT telecoms industry](https://www.financedigest.com/the-four-benefits-of-digital-transformation-in-the-finance-industry.html "The Four Benefits of Digital Transformation in the Finance Industry") to customers. But, is there a gap between the perception and current reality of the eSIM?

**Perception**

Undoubtedly the most important benefit of eSIM technology – and the one most widely referred to – relates to enhanced provisioning.

Traditionally, SIM cards have been provisioned with the profile of a single [mobile network operator](https://www.financedigest.com/russian-regulator-says-mobile-operator-mts-breached-anti-monopoly-laws.html "Russian regulator says mobile operator MTS breached anti-monopoly laws") (MNO), which once locked in, cannot be changed. This means [customers must replace their SIM card every time they want to change operators](https://www.financedigest.com/australias-qantas-apologises-to-customers-for-operational-problems.html "Australia’s Qantas apologises to customers for operational problems"). While this is a manageable task and something we are all used to when talking about a personal mobile phone,it has massive cost implications for IoT [customers](https://www.financedigest.com/the-advanced-wound-management-technologies-market-to-grow-based-on-customized-digitization.html "The Advanced Wound Management Technologies Market to grow based on customized digitization") managing thousands, if not millions, of remotely located edge devices, over many years andacrosspotentiallyvast areas.

With new, eUICC compliant eSIMs, the plan is forMNO provisioning to bemanaged over-the-air,withno physical access to the device required. The cards should be able to host multiple and changeable provider profiles when they are deployed. This should mean that customers can change carriers on a daily basis if they so wish, depending on [business factors](https://www.financedigest.com/lane-change-assist-systems-market-overview-business-growth-development-factors-application-and-future-prospects.html "Lane Change Assist Systems Market Overview – Business Growth, Development Factors, Application And Future Prospects") such as connectivity, resilience, customer service SLAs and the data rates available.

This requirement has significant implications for enterprises with large-scale IoT deployments. Embedded eSIMs remove the cost and logistics headaches that come with having to manually change a SIM card or network provider, as well, for example, as maximising device uptime by allowing a choice of the best [local network operator](https://www.financedigest.com/mcdonalds-to-sell-russia-restaurants-to-local-operator-rebrand.html "McDonald’s to sell Russia restaurants to local operator, rebrand").

There are also benefits for both manufacturers and [operators to consider](https://www.financedigest.com/europes-wizz-air-considering-a-saudi-operating-license.html "Europe’s Wizz Air considering a Saudi operating license"). As eSIM-equipped devices are ready to go straight out of the factory, IoT business managers and technologists can, in theory, streamline their logistics by removing the need for local device set up and configuration further down the [supply chain](https://www.financedigest.com/eliminating-payment-barriers-the-future-of-supply-chain-payments-is-digitization.html "Eliminating Payment Barriers: The Future of Supply Chain Payments is Digitization"), no matter where they are deployed.

With IoT customers being promisedan improved cellular supplier negotiating position, increased [management convenience and the removal of a considerable amount of complexity and risk](https://www.financedigest.com/risk-management-redefined-navigating-post-covid-disruption.html "Risk Management redefined: navigating post-COVID disruption") of ongoing costs from operators, it’s easy to see why they are drawn to the eUICC compliant eSIM.

However, despite these benefits, the [current eUICCspecification doesn’t yet solve all the problems](https://www.financedigest.com/the-problem-with-current-anti-money-laundering-processes-a-lack-of-context.html "The problem with current Anti-Money Laundering processes: A lack of context") of IoT.

**The Gapto eUICC delivery**

The problem [currently facing potential eSIM customers is that while industry](https://www.financedigest.com/peel-off-face-mask-market-2022-outlook-current-and-future-industry-landscape-analysis-2029.html "Peel off Face Mask Market 2022 Outlook, Current and Future Industry Landscape Analysis 2029") discussions have so far focused on the potential benefits offered to businesses, there are also several commercial and technical challenges that will need to be understood and worked through over the coming months.

_Commercial Challenges_

Operators are aware of the continuing commoditisation of M2M cellular [data](https://www.financedigest.com/uks-ftse-100-gets-a-lift-from-commodities-as-u-s-inflation-data-looms.html "UK’s FTSE 100 gets a lift from commodities as U.S. inflation data looms") with this newly enabled, simple,least-cost transferring option. The whole point of eSIMtechnology is that, unlike traditional SIM cards, it provides a means of avoiding contractual lock-in. However, this is not in operators’ interests, and may not always benefit customers in the way they imagine.

IoT deployments can be complex. Organisations will increasingly rely on the reliable delivery of vast amounts of business – and possibly even life-critical – data, drawn from huge numbers of devices, across many different locations and environments. There is a cost to maintain and deliver this service, and while some companies can reduce the TCO of a deployment with specialist wrap-around services, dynamic multi-IMSI SIM technology and expert 24/7 IoT customer support, getting the [data through will always come at a price](https://www.financedigest.com/german-bond-yields-give-up-rise-after-u-s-price-data.html "German bond yields give up rise after U.S. price data").

In addition, although eSIMs might appear to offer an easier switching process for customers, this doesn’t [necessarily mean](https://www.financedigest.com/spiralling-azure-costs-dont-necessarily-mean-your-cloud-strategy-is-off-course.html "Spiralling Azure costs don’t necessarily mean your cloud strategy is off course") that it is contractually any different and there will still be a procedure for customers to go through.

_Technology Challenges_

There are also some significant technology integration [issues that will need to be overcome](https://www.financedigest.com/9-issues-in-corporate-finance-and-strategies-to-overcome-them.html "9 Issues in Corporate Finance and Strategies to Overcome Them") before adoption rates can really take off, primarily concerning remote provisioning. The industry has been keen to promote the idea that eSIMs enable customers to change their supplier at will, but in practice, both suppliers must be integrated at this tech level, in a [way that allows data](https://www.financedigest.com/four-ways-data-and-ai-can-transform-financial-services.html "Four ways data and AI can transform Financial Services") to flow.

Essentially, both parties not only have to agree to the transfer, the relevant [systems must also be bolted](https://www.financedigest.com/bae-systems-sees-big-opportunity-in-space-after-uk-satellite-bolt-on.html "BAE Systems sees big opportunity in space after UK satellite bolt-on") together to actually make it happen. The device itself also has to be able to [communicate with both platforms](https://www.financedigest.com/cloud-communication-platform-market-2022-scope-of-current-and-future-industry-2030.html "Cloud Communication Platform Market 2022 | Scope of Current and Future Industry 2030"). From years of experience in dynamic IMIS routing and IoT device optimisation, I can [say this is likely to be a longer and more complicated process than people think](https://www.financedigest.com/go-for-it-think-positive-believe-in-yourself-and-do-what-you-love-says-dawn-elliott-of-sew-confident-chorley.html "“Go for it, think positive, believe in yourself and do what you love” says Dawn Elliott of Sew Confident Chorley").

I believe eSIMstandards are undoubtedly a move in the right direction, but there is still some [way to go for eUICC to become the revolutionary innovation](https://www.financedigest.com/four-innovative-ways-to-pay-for-products-online.html "Four Innovative Ways to Pay for Products Online") it is predicted to be.


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---