How telecoms will gain from Embedded SIM for M2M

Embedded SIM cards will dominate the M2M (Machine to Machine) market, accounting for more than 50 percent of connections by the end of the decade.

The dominance of embedded SIMs will enhance the capabilities of telecom service providers to update and augment offerings and subscriptions, said Juniper Research.

Migration to OTA (Over The Air) provisioning will facilitate new business models, increasing the lifetime value of M2M subscription while also reducing costs.

The increased benefits that embedded SIMs would offer to customers across an array of verticals, as remote provisioning would oblige operators to compete on pricing, functionality and customisation capabilities.

The reduced cost and flexibility afforded by embedded SIM technology could be instrumental in increasing take up in key verticals such as agriculture within developing markets, according to the new study, M2M: Strategies & Opportunities for MNOs, Service Providers & OEMs 2016-2021.

The introduction of the GSMA’s embedded specification is likely to fuel the opportunity for service providers to offer remote provisioning of SIM cards, the report said.

“By making M2M affordable, the introduction of the embedded SIM model can in turn allow farmers in regions such as sub-Saharan Africa and developing Asia to increase their yield, boosting crop production and helping to address the rising demand for food,” said Sam Barker of Juniper Research.

Smart Metering and Connected Car connections will comprise the majority of all cellular M2M embedded connections over the next 5 years.

3G connections will comprise half of all cellular M2M connections in 2021, due to the need for an affordable and low speed service.

Network operators should capitalise the growth of M2M by offering customisable M2M platforms that offer a variety of simple billing models.