How telcos can implement eSIM IoT now

In September 2022, Apple introduced the first eSIM-only iPhone to the U.S. market. Less than a year later, in July 2023, the GSMA released the SGP.31 specification for eSIM in IoT. These milestones signalled a clear shift, marking the start of an exponential rise in eSIM adoption across the entire ecosystem, from telcos and OEMs to consumers and enterprises.

According to Counterpoint Research, more than six billion eSIM-capable devices will be shipped between 2024 and 2028, and seven out of every 10 cellular devices shipped in 2030 will have eSIM. Meanwhile, Juniper Research predicts the number of global IoT eSIM connections will increase by almost 700%, from 165 million in 2024 to nearly 1.3 billion in 2028.

An ecosystem of eSIM providers like Trasna is helping to drive and sustain this growth. Trasna is one of the few organisations worldwide certified by the GSMA to deliver full eSIM lifecycle management. We offer end-to-end solutions — from SIM and SIM card manufacturing to our innovative eSIM cloud for managing and scaling your eSIM connections.

The sustained increase in eSIM adoption and readiness among consumers, enterprises, and OEMs is a welcome development for telcos, as it brings several advantages and many opportunities. However, these benefits do come with challenges.

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Evolving challenges facing telcos

The increasing number of cellular eSIM devices means the potential to expand consumer market share and revenue per user. Additionally, telcos can activate new revenue streams as more eSIM IoT devices are rolled out and eSIM IoT applications are developed. They can provide an eSIM connectivity management platform for enterprises and virtual network operators, enablers and aggregators. However, these also lead to challenges, including the following:

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1. Fulfilling the greater demand for varied profile types

The increasing number of eSIM-capable devices translates to greater profile demands on telcos. Devices have different capabilities. For instance, an eSIM device with 5G requires a different profile from another eSIM device without 5G.

Therefore, profile delivery and lifecycle management can be a challenge. Telcos with very limited profile sets, minimal orchestration capabilities, and manual profile generation processes will be unable to cope. They cannot generate new profiles on demand and are incapable of efficient bulk profile management over their lifecycle.

2. Managing multiple channels

There are many players in the eSIM distribution chain. Telcos can provide service to consumers, supply in-factory eSIM provisioning to OEMs, deliver connectivity to enterprises, and sell capacity to virtual network operators, enablers and aggregators.

Enterprises, OEMs and mobile network providers may have their own downstream distribution channels. They and the telcos may also operate in different verticals, regions and countries. Multiple distributors, for instance, are standard in Asian (and possibly African) markets.

In such a complex and multifaceted eSIM distribution landscape, it can be difficult to provide quick, seamless and efficient eSIM services to clients and end-users. This is especially true if every player in a distribution network has its own systems and processes that don’t necessarily work well together.

3. Preventing stockouts

The heavier demand for eSIM profiles can lead to stockouts and delayed profile delivery, which can cause dissatisfaction and poor client and customer experience. A centralised distribution structure, moreover, can lead to even more chokepoints in inventory administration and profile delivery.

The opportunities in eSIM, particularly in eSIM IoT, make overcoming the challenges more than worth it for telcos. The question remains: What can telcos do to implement eSIM IoT now?

• Intelligent profile matching and delivery: The eSIM provisioning and management platform must be able to identify device capabilities in real time and get the appropriate profile for IoT devices.
• Bulk management: What if an enterprise, operator, enabler, or aggregator has thousands or millions of devices they need to manage? They must be able to provision and manage all their devices in bulk instead of processing them individually.
• Automation: Not only must telcos and their clients be able to bulk-manage profiles, but they must also be able to do so in a seamlessly automated process. There should be automatic matching between devices and profiles, and systems must be automatically updated when devices move locations or have been updated in any way that renders existing profiles unsuitable.
• A single multi-channel management interface: Telcos and their distributors need a platform that will let them manage multiple categories, channels, locations, vendors, and verticals from a single, unified interface.
• Management delegation: Telcos must be able to delegate management functions to distributors. This ensures telcos don’t get bogged down with their management tasks while offering distributors the flexibility to onboard and provision their clients and customers.
• Inventory tracking in real time: Telcos and their distributors need real-time inventory tracking that notifies them when they’re running low on inventory. This will help them avoid stock-outs, lost sale opportunities and poor client/customer experience.

eSIM IoT brings telcos many opportunities, but also comes with challenges. Fortunately, the solutions to these challenges already exist. You can now implement eSIM IoT, with Trasna's GSMA SGP.32-compliant eSIM IoT platform.

Our multi-tenant eSIM cloud platform, delivers intelligent profile matching and delivery, management delegation, real-time inventory tracking, and a unified multi-channel management interface. Its eSIM IoT manager (eIM) component is a versatile and flexible solution that enables automated push or pull bulk-profile management. And with support for both GSMA’s SGP.22 and SGP.32 specifications, it allows you to manage all your existing and future IoT devices from a single platform.

Talk to a Trasna technical consultant today to learn how we can help you maximise your eSIM IoT opportunities.