Published on 08/23/2016 | Strategy
It is clear that the Internet of things can only be considered beneficial when users experience maximum convenience, globally. Nonetheless, the concept has taken off the ground at the commercial and domestic levels, the way fleet managers can monitor ‘smart connected trucks’ in transit. In other applications, vending machines can now alert the suppliers when the stocks are depleting, for timely replenishment's. While there are numerous opportunities in Industrial IoT (IIoT), there is an urgent need for implementing changes to seize the opportunities and maximize benefits.
The mobile SIM has served the communication industry for the last few decades but falls short in meeting the requirements of IIoT deployments. The SIM is too large to embed in smart devices such as smart doors, ski vests, wearables and sensors. Nonetheless, the IoT proponents will have to adopt eSIM units that can fit into any gadget, giving more functionality than the conventional SIM. As it stands, the bulk of M2M service providers operate on limited platforms that hinder communication across the board hence is not suitable for the global applications.
When it comes to the world of applications, eSIM will come handy to break barriers, hence, will allow economies of scale for the businesses. With increased ‘connected gadgets and products’, the demands for more connections will escalate. Nonetheless, the need for versatile hardware and SIM has to be realized, for the concept to achieve full potential.
Unlike the traditional physical SIM cards that force users to long-term commitments, the embedded SIM [aka eSIM] comes with reprogrammable features that allow ‘SIM easy access’ to any available network at various stages of the product’s lifecycle. An open, connected network is crucial to allow quick switch to other networks’ authorizations, thus enabling varying connectivity models. As it stands, changing carriers comes with huge costs and massive downtime limiting the manufacturers’ ability to minimize cost of operations.
The open connectivity ecosystem will be key to the success of IIoT connectivity. The models allow both locked and open connections where larger carriers can utilize the IIoT opportunities without exposing their ventures to losses. In areas where manufacturers need exclusive packages, they can opt to use one carrier’s subscription. And, if not enough, manufacturers will be able to access different carriers based on the location of the devices, increasing reliability. On the other hand, the customer stickiness issues with a specific service provider are likely to increase the need for more devices than in the closed system making it less economical.
Using the cloud service, end users can now determine the network to which their gadgets connect, and predict failures proactively via predictive analytics. Remote subscription management via the cloud further will enable cars moving across borders to switch networks to service providers of their choice, and thus enjoy lower cost provider or in case of a human heart pace maker with eSIM could alert EMR personnel to arrive in a timely fashion to the patient when alerts of an impending irregular heartbeats are sensed is just in the horizon of one’s lifetime. Nevertheless, the current business model will probably stagnate if the IIoT industry deals with the current challenges engulfing the full ecosystem.
In line with the changes, the global carriers will have the capacity to assume the role of world connectivity partners for larger manufacturers, while the local service providers can serve the global manufacturers as their local connectivity centers.
The future standard will most likely require a new or non-provisioned device to connect to an online service such as an eSIM profile discovery server to download an operator profile to the handset. Final details on the eSIM operating model including the required components for a ‘provisioning architecture’ are being finalized by OEM’s, network operators, SIM vendors, and the Groupe Special Mobile Association (GSMA).
GSMA recently added “Profile Interoperability” as a solution for remote SIM provisioning for M2M, which works with both eSIM as well as traditional SIMs. According to the GSMA- “Operators will be able to ask a SIM vendor to create an eSIM profile for them, which can then be downloaded to any compliant eUICC (a SIM card that supports remote provisioning)”. This capability was not available previously and will make it much easier for remote SIM provisioning, allowing operators to do this at scale. This will eliminate the need to replace SIM cards, which can be extremely difficult in M2M settings, and will make it easier for customers to switch from one carrier to another.
