eSIM (electronic SIM) and embedded SIM are two different terms. While both are under development and can be incorporated in IoT. They will result in more efficient SIM technology combined with the fast-growing and in-demand 5G network. Before going into the details first let us learn about SIM cards.

SIM (Subscriber Identity Module)

A SIM (Subscriber Identity Module) is also known as a UICC (Universal Integrated Circuit Card). It is a device that stores data that uniquely identifies a cellular subscription. For nearly three decades, it has been the interface that allows us to link smartphones to the world’s cellular networks. It stores a subscriber’s credentials and security keys. The SIM represents this identity by an IMSI number or International Mobile Subscriber Identity. It is unique to each user or device on or off the network. In addition, SIMs run an application that sends the identity information to a cellular modem onboard. The modem, in turn, is in charge of the actual network connection.

The above image shows you some SIM types that are familiar to you. The programme that the SIM card runs is often known as UICC. It’s an acronym for SIM that we use frequently and interchangeably with the card or chip itself. In addition we solder this chip directly onto the electronic circuit board of your gadget. Instead of the larger versions that you place manually in device slots. The rightmost one looks a little different. For our ever-shrinking consumer and IoT products, a smaller form factor was necessary.

You could say it is “embedded” into a bigger circuit board. So if we embed the MFF2 form factor, do we call this tiny SIM an “eSIM”? Unfortunately, no. Some do, but it’s not clear. While the “e” in eSIM does stand for embedded (you will also find the reading “electronic SIM” out there). What is meant with eSIM is really a different “kind” of embedded – not the hardware kind.

Now let’s learn about electronic SIM (eSIM).

What is an eSIM?

An eSIM is any piece of hardware that runs the eUICC program. It also contains storage for several SIM profiles (although only one can be active at a time). We can provision it remotely over the air (OTA). Without physically swapping SIMs, we can update the profiles saved on an eSIM remotely via software and API calls. Profiles are downloaded if not already existent, or activated if inactive.

An eSIM can hold multiple SIM profiles (keys and identities) at the same time. This feature can give your device access to multiple carriers – but only one SIM will be active at a time. An eSIM does not have to be in one of the commonly used type factors (2FF, 3FF, 4FF, MFF2). Anyone can design their own hardware chip, as long as it runs an application that obeys the eUICC standard.

The eSIM concept is a game-changer for cellular IoT installations, while it simplifies things for consumers. You can prevent being locked into any mobile network provider by using an electronic SIM (MNO). Because it decouples the hardware from the selection of which MNO to use. You can use the same gear to distribute your devices over the world and decide which carrier to use later.

The relevance of eSIM in IoT

When Apple equipped its 2018 iPhone models with this feature, they were the ones who popularised eSIM. Users may now buy and sell phones without having to deal with physical SIM cards. In the consumer space, it is still a new capacity. The same is true for IoT applications, but we can observe an increase in its adoption and demand. Electronic SIM makes particular sense for three kinds of IoT device types:

• Long-lasting: Gadgets that are used for a long time such as autos, medical devices, or home automation systems. But whose ownership and hence deployment region may change frequently.
• Space-constrained: Devices that must optimize for space such as wearables and require the smallest possible form factor. Implying that the device cannot be opened later to switch SIM cards.
• Remotely installed: Devices that we deploy in remote locations, such as billboards, air quality monitors, or forest fire monitors. And where switching physical SIMs would be prohibitively expensive.

Benefits of eSIM

Future-proofed and maximized IoT investments

Consumers who want to switch network providers will need to purchase and install a new SIM card. Because SIM cards tend to lock users into a single carrier. On the other hand, eSIM allows users of IoT devices to choose from a wider range of cellular networks. This is especially beneficial for devices deployed over a long period of time.

The remote provisioning features of eSIM provide another financial savings opportunity. It’s a cost-effective solution for data-intensive applications because a single eSIM allows provisioning to various carrier profiles. Also it easily switches to the most cost-effective network available.

Improved operational and logistical efficiencies

When an IoT device with an eSIM leaves the factory its control is in the hands of the device user rather than the network provider. It also allows for a single SKU. For the device user, the resulting control greatly simplifies SIM management. The difficulty of managing many carriers with devices scattered across several locations is an important issue. But it is considerably reduced with the ability to manage all IoT subscriptions and connectivity in one place.

Increased security

Although removable eSIMs are available, we design the majority of eSIMs as permanently installable components in the device. This eliminates the possibility of misplacement or theft of the eSIM. Furthermore, by using the eSIM as a root of trust to protect IoT applications, customers can achieve chip-to-cloud security. As well as the potential to add further encryption to the data.

According to Counterpoint Research, shipments of eSIM-based devices will reach almost two billion units by 2025. Up from 364 million in 2018, with enterprise IoT devices and activation rates leading the way.

The reasons are clear by using highly secure eSIMs, businesses can lower the total cost of ownership of connected devices. While it also increases efficiency in ways that are impossible to achieve with a traditional single-carrier SIM card. As more businesses turn to IoT, they want deployments to be simple, safe, and cost-effective. The eSIM technology might deliver exactly what you need.

We have discussed about electronic SIM. Now lets talk about the embedded SIM.

embedded SIM

The GSMA defines an embedded universal integrated circuit card (eUICC) as a global association. It comprises of around 800 mobile carriers that is responsible for creating the overall telecommunication environment. Unlike traditional detachable plastic SIM cards, we can solder the eUICC directly into the device.

The eSIM/eUICC has evolved physically to be able to withstand harsh environments and the long life cycle of IoT devices. Remote provisioning of subscription credentials to IoT devices is also possible using eSIM technology, according to GSMA regulations. One of the most important needs is that eSIMs meet the same security standards as existing SIMs.

The above diagram shows the comparision of a normal SIM with an embedded SIM. Now lets move on to the ease of emedded SIMs in IoT and their seamless connectivity bootstrapping.

The ease of eSIM and seamless connectivity bootstrapping

The bootstrapping of connectivity is one of the essential values that eSIM brings to IoT. The process of connecting newly powered-on devices is known as bootstrapping. Bootstrapping is a method of connecting devices to a trustworthy network. As well as any additional management servers required such as device management, connectivity management, and so on. Because we frequently deploy IoT devices in large numbers, we need to automate and standardize the bootstrapping process. With the usage of eUICC is a global standard to ensure bootstrapping identification, cellular connectivity can allow automated bootstrapping.

However, in the device production, shipping phases and throughout the device lifecycle, there is a barrier to handling old SIM cards. Enterprises will benefit from a seamless onboarding experience as more devices adopt eSIM technology. This will allow them to connect their devices to a network in a safe and fully automated manner.

Some IoT devices may even be born with an eSIM that includes device bootstrapping identification, in addition to connectivity bootstrapping. It can make device onboarding to device management servers more seamless. As well as it will provide secure device access and data transmission with the IoT cloud. In a word, IoT devices in which we use an eSIM are secure, manageable, connectable, and cloud-ready from the start.

embedded SIMs in IoT

As the number of connected devices increases, industries and enterprises place more and more demands on cellular technology for connectivity. A potential catalyst to digitally manage the cellular connectivity lifecycle is eSIM technology. Although we have started to see some traction with eSIM, there are still some challenges.

Benefits of GSMA Embedded SIM

• Operators gain new business opportunities from a world of intelligently linked networks and devices. Lower logistical costs associated with managing conventional SIM cards and maintain current SIM security standards. All with minimal effect on their current network infrastructure and integration and testing costs.
• By providing the infrastructure and services that enable SIMs to provision remotely. SIM manufacturers add versatility to their existing products and open up new markets. We can maximize all returns on R&D investments when we follow a common industry norm.
• The customers appreciate that there is a standard global architecture that does not compromise existing SIM capabilities. They invariably profit from increased production versatility, as well as global constraints versus local connectivity contracts.
• End users enjoy a consistent experience across a variety of devices. Its safe that we link them to ubiquitous mobile networks safely and intelligently. This remotely provisionable SIM is critical for the machine-to-machine market’s future development.

Challenges for embedded SIM

Cellular communication can be allowed through eSIM technology, but the existing eSIM market is easy to shatter and delicate. Even though eSIM technology has been around for a while, adoption is still poor in comparison to its long-term potential. We still use Traditional SIM technology widely and it serves as a useful role.

The adoption of eSIM technology is not a one-time event. It necessitates a global eSIM infrastructure rollout as well as changes in both technological and business processes. Embedded SIMs can add unreasonably high bill-of-materials costs to constrained low-cost IoT devices. A diverse IoT market and immaturity of technology and uncertain business models are the main challenges for widespread eSIM adoption.

Conclusion

We use eSIM and eUICC seemingly interchangeably, even though there is a difference between the two. The eSIM is the hardware component of the SIM and a physical form that can be soldered into a solution. The eUICC is the software component that allows the remote SIM provisioning of multiple network profiles.

Embedded Subscriber Identity Module or Embedded SIM is a UICC that supports “over-the-air” provisioning of an initial operator subscription. Also the subsequent change of subscription from one operator to another per the GSMA Embedded SIM specification. The use of the GSMA Embedded SIM specification simplifies industrial and logistic processes for the distribution of M2M equipment.