IoT vs. consumer and M2M eSIM management

As we predicted in 2018, eSIM has reduced the mobile network operators’ reliance on SIM card manufacturing. It has shifted the operational expense and burden of procuring and handling SIM cards (at least the eSIM module) from mobile network operators to original equipment manufacturers (OEMs). eSIM has also enabled an explosion of eSIM-connected devices. Juniper Research estimates 1.1 billion active connected devices and sensors in 2024 and projects a 208% growth in the value of the global eSIM market between 2024 and 2028.

GSMA predicts there will be 1 billion eSIM smartphone connections worldwide by the end of 2025 and 6.9 billion by 2030. However, the greatest driver of this exceptional optimism in the eSIM industry primarily comes from the publication of the GSMA SGP.32 eSIM Internet of Things (IoT) remote SIM provisioning (RSP) technical specification. Juniper Research even claims that by 2026, the growth of eSIM IoT module connections will outpace the growth of eSIM smartphone connections globally.

Before launching the IoT RSP standard, GSMA already had two existing specifications: one for the consumer eSIM and another for the machine-to-machine (M2M) module.

The consumer eSIM specification

The consumer specification establishes the RSP architecture for smartphones and consumer companion devices (e.g., tablets, laptops, smart watches, etc.). The consumer eSIM specification follows a pull model. The device (or the eUICC on the embedded SIM) controls remote provisioning and local management of operator profiles. The consumer RSP architecture has four elements:

• SM-DP+ – Subscription management data preparation plus creates profiles, remotely provisions profiles, and makes them available for download; it combines data preparation and secure routing.
• LPA – The local profile assistant enables the device to download network profiles to the eUICC; it powers the local profile management user interface.
• eUICC – The eUICC is the secure element that stores subscription profiles.
• SM-DS – The subscription management data preparation discovery service is an optional component that holds a list of available profiles; the device LPA may poll the SM-DS to check if a profile is available for download.

The consumer eSIM RSP architecture’s pull model works because smartphones have advanced capabilities and interfaces. For constrained consumer devices, an entitlement server can ensure seamless provisioning.

The M2M eSIM specification

The cellular M2M module specification regulates the remote service provisioning (RSP) standards applicable to M2M devices.

The M2M connectivity platform follows a push remote management model. It relies on a subscription manager (SM) server, which has two elements: data preparation (SM-DP) and secure routing (SM-SR). Below are the M2M architecture’s key components:

• SM-DP – The subscription management data preparation server creates, packages and stores network profiles.
• SM-SR – The subscription management secure routing server is responsible for remote management (addition, activation, deactivation, deletion).
• eUICC – The eUICC is the component that stores network profiles.
• EUM – The eUICC manufacturer is responsible for personalising eUICC data and uploading it to the eSIM.

The push RSP model is ideal for M2M. It’s meant for sensors, smart metres and other M2M devices often constrained in interface, power, bandwidth, memory, screen real estate, and accessibility. These devices are typically incapable of pulling profiles themselves.

The eSIM IoT specification

While consumer eSIM connections soared, enterprise eSIM connections lagged due to the M2M module architecture’s inherent weaknesses:

• The separation of the data preparation and secure routing components means the system requires extensive integration between SM-DP and SM-SR.
• Ideally, the device eUICC must be configured with the SM-SR at manufacturing. When an enterprise changes connectivity vendors, an SM-SR swap is required. This is a complex and lengthy process.
• The SMS or HTTPS profile delivery methods of the M2M standards pretty much exclude constrained (i.e., low-power, low-memory, low-bandwidth) M2M devices.

GSMA’s new IoT technical specification, published in May 2023, resolves the above constraints. It is expected to accelerate enterprise adoption of the eSIM IoT module.

The IoT specification draws upon the strengths of the consumer and M2M standards. It defines a unique RSP architecture that simplifies remote secure provisioning and management, but does not demand extensive OEM and MNO integrations or require IoT devices with a high memory capacity or user interface.

The following are the key elements and characteristics of the IoT specification:

1. Uses SM-DP+

Like the consumer specification, it uses the SM-DP+ platform that combines data preparation and secure routing. This eliminates the need for complex DP and SR integrations.

2. Introduces the IoT profile assistant (IPA)

This is the equivalent of LPA in the consumer specification. It assists in profile downloads and management. It can sit in the device (IPAd) or the eSIM eUICC (IPAe).

3. Uses an eSIM IoT remote manager (eIM)

The eSIM IoT remote manager makes it easy to provision eSIM IoT devices. It has four interfaces that enable direct or indirect profile downloads as well as push and pull profile management operations. This versatility makes it useful to both constrained and non-constrained eSIM devices. Enterprises can push profiles in bulk to IoT devices using a laptop or a similar device. Profile operations queueing also makes it possible to trigger devices to pull outstanding transactions when they come online. The eSIM IoT remote manager connects to the:

• SM-DP+, allowing it to obtain profiles through the SM-DP+ backend
• SM-DS, allowing it to obtain profiles through the SM-DS route
• IPA, allowing it to trigger downloads or securely transport eSIM profiles
• eUICC, associating the eIM with the eUICC and running profile state management operations (PSMO)

The eIM can be configured at the following stages, making it highly flexible to suit different workflows:

• Upon eUICC manufacturing
• Upon device manufacturing
• After deployment

4. Expands usable application layer protocols

IoT devices on the new GSMA eSIM IoT specification are not limited to the SMS and HTTPS profile delivery methods defined in the M2M specification. Available protocols include:

• Constrained Application Protocol (CoAP) over user datagram protocol (UDP) with datagram transport layer security (DTLS): This one is useful for low-power, low-bandwidth, low-bit-rate devices.
• Hypertext Transport Protocol (HTTP) over transmission control protocol (TCP) with transport layer security (TLS)

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Taking stock and moving forward

There are currently three eSIM standard specifications: consumer, M2M, and IoT. Consumer devices will continue using the consumer RSP standard, but the IoT specification effectively replaces the M2M standard in enterprise applications.

Businesses that have adopted the M2M eSIM specification – especially those that built custom infrastructure to implement M2M eSIM – are unlikely to abandon their proprietary systems for the new IoT specification. However, the new IoT specification will drive further enterprise eSIM module adoption – thus, the expected boom in eSIM IoT connections.

Trasna is one of the few providers certified by GSMA to provide full eSIM lifecycle management, from production to subscription management. We provide integrated, flexible and versatile IoT subscriber management solutions, including IoT modules and a cloud-hosted, multi-tenant and interoperable esIM orchestration platform that telcos can readily use to manage the eSIM lifecycle across the GSMA consumer, M2M and IoT architectures. Talk to us to learn about the different RSP architectures and how to implement an IoT infrastructure that works for you and your enterprise clients.

The following benefits make embedded modules attractive to enterprises:

1. Integration

Generally speaking, the smaller an IoT device is, the better. IoT devices need to be unobtrusive, and they must consume as little power as possible. Embedded modules are surface-mounted onto the motherboard. Consequently, eSIM IoT asset trackers, smart metres, equipment sensors, robotic process automation bots, livestock collars, drones, and other commercial- and industrial-application devices can be as small as possible.

2. Versatility

Different industries have distinct IoT use cases, and embedded modules for IoT devices come in three variants: classic, industrial and automotive. Each one has different characteristics and capabilities to suit various operational requirements.

3. Durability

Modules for enterprise applications need to be more durable than modules for consumer devices. For instance, leak and emission sensors used in desert oil rigs must be able to withstand extreme heat. Automotive sensors should be able to withstand vibrations. Embedded modules are strong but lightweight. Since they are soldered directly onto the device motherboard, they’re more robust than traditional pluggable M2M modules and can better withstand shock and vibrations. Furthermore, eSIM IoT modules are resistant to extreme temperatures. Our modules can operate between -40°C and 105°C.

4. Longevity and capacity

IoT devices may be deployed in inaccessible locations. Cellular M2M modules in the field cannot be easily replaced, so they must last long. Embedded modules have excellent longevity and capacity. Our eSIM module for IoT deployment has a lifespan of up to 25 years or up to a million rewrites and a storage capacity of up to 2 MB.

5. Performance and updatability

Technology develops at a furious pace, but it would be impractical to exchange modules to implement significant developments. Embedded modules with their over-the-air provisioning capabilities (enhanced by the GSMA IoT specifications) may be updated remotely. eSIM software can be modified on demand. An embedded module’s smart network switching SIM applet may be updated to the latest version for faster and more efficient network switching. Our eSIMs also have a powerful but light operating system. This and their updatability ensure responsiveness and peak operational performance.

6. Widespread enterprise adoption of eSIM

What is one advantage of eSIM to manufacturers? It’s the single eSIM SKU, which translates to efficient manufacturing and logistics. This direct benefit to OEMs encourages the switch to eSIM among manufacturers. The expected increase in eSIM-enabled IoT applications (e.g., connected vehicles and intelligent farms, buildings, factories, etc.) should further drive the adoption of eSIM among OEMs. As more OEMs use embedded cellular M2M modules in their devices, more industries should turn to IoT, particularly eSIM IoT. This can spur the development of more eSIM IoT applications, which can then lead to more OEMs manufacturing eSIM-enabled IoT devices. It’s a self-reinforcing cycle that ultimately ensures widespread enterprise eSIM adoption.

Embedded modules have clear advantages over traditional pluggable modules, so the growth of the eSIM IoT market share is inevitable. It is important that telcos establish themselves in the fast-growing enterprise IoT eSIM market as early as possible. eSIM gives them the means to deliver excellent M2M connectivity to enterprise clients cost-effectively and efficiently. Trasna specialises in helping telcos capitalise on this opportunity with lightweight but strong, high-performance, high-capacity, and highly durable embedded modules and with our secure, end-to-end and compliant eSIM management and orchestration systems, telcos can deliver seamless eSIM IoT solutions to enterprise clients. Learn how to capitalise on eSIM IoT enterprise growth opportunities by reaching out and talking to a Trasna technical consultant today.