Adoption of GSMA Embedded SIM Specification helping mobile industry to benefit from $1.1 trillion IoT opportunity

Gary Waite, Executive Director – Embedded SIM, GSMA
Gary Waite2The recent announcement that operators Indosat, Tele2 and Telefónica Vivo have launched commercial solutions based on the GSMA Embedded SIM Specification is further demonstration of its broad appeal and role in helping to scale the burgeoning machine-to-machine (M2M) and Internet of the Things (IoT) markets. These recent deployments mean that eleven operators have now launched commercial solutions based on the GSMA Specification, with a further fourteen committed to launch solutions in future. It has quickly become the de facto industry standard and a common language, reducing market fragmentation and helping to connect everything and anything to the internet, such as smart meters, traffic lights, cars and industrial equipment.
GSMA Intelligence has calculated that nearly 75 per cent of global M2M connections are now serviced by mobile operators deployed or committed to the GSMA’s solution, underscoring the momentum behind the Specification. The GSMA Embedded SIM Specification has been widely adopted because it offers significant advantages over propriety solutions. It gives a clear advantage to end users in that they will be able to swap profiles ‘over the air’ without having to replace the SIM itself – something particularly useful for devices that are hard to reach or stored in remote locations.
One of the primary applications of the GSMA Specification will be in the automotive sector, where there is high demand for features such as tracking, vehicle diagnostics and infotainment. The GSMA Specification is ideal for global products, because it allows an operator to be selected at the country of destination. Automakers can be confident that with the GSMA Specification they have access to the whole market of operators – the same cannot be said for proprietary solutions. The IoT market has been in need of standardised solutions and this demonstrates how mobile operators are being proactive in addressing the concerns of auto manufacturers and OEM’s.
There have already been a large number of operators, auto manufactures and OEMs that have formed partnerships in order to capture a share of the connected car market, which is indicative of the confidence in this sector. The success of the GSMA’s Specification here will likely act as a trigger for the adoption of a standardised interoperable M2M solution across many other verticals.
It is clear that operators see the value of providing commercial solutions based on an interoperable and united global standard that will allow them to provide scalable, reliable and secure connectivity. As the number of adopters of the GSMA Embedded SIM Specification increases, economies of scale will drive down the cost.
Analyst firm Machina Research estimate that the total addressable M2M revenue opportunity for operators will be USD $1.1 trillion by 2020. Operators looking to capitalise on this should ensure their solutions are compatible with the Specification as soon as possible. For more information on the GSMA Embedded SIM Specification, please visit Gsma.com/connectedliving/embedded-sim/