SIM cards are essential to enabling mobile connection for phones or IoT devices. But SIM technology today is evolving, with the traditional physical SIM card becoming cumbersome in the age of increased connection, travel, and innovation.
While the SIM card, as we’ve come to know it, is shifting and developing, how can Communication Service Providers (CSPs) know what development in SIM technology can deliver the most significant benefits to both them and their customers?
While the SIM card, as we’ve come to know it, is shifting and developing, how can Communication Service Providers (CSPs) know what development in SIM technology can deliver the most significant benefits to both them and their customers?
SIM Cards
Most recognize a SIM card (Subscriber Identity Module) as the physical card placed in your mobile to connect to your service provider plan. SIM cards require a physical slot to be connected to a device and have fixed functionality. For mobile users, SIM cards can be swapped out relatively easily, but for cellular IoT devices, this can become more complicated and more costly.
Since their creation, SIM cards have become smaller and more accessible, with some recent developments removing the need for a physical card at all. For CSPs, these developments mean offering increased global connectivity and boosting ROI.
What are the new kinds of SIM cards?
- eSIM
- iSIM
- SoftSim
How do these differ from a traditional SIM card, and which enables CSPs and MNOs to provide the best offering for their customers?
What is an eSIM?
The eSIM (embedded SIM) has become one of the most popular SIM developments, increasingly offered to consumers by service providers since their creation in 2016. While they haven’t entirely replaced the traditional SIM, they’re growing in use by consumers as second SIMs and travel SIMs. Estimates expect 4 billion phones to support eSIMs by 2028, equating to 75% of mobiles globally.
An eSIM is embedded into a device’s motherboard and is not removable like a traditional SIM card. Using remote SIM provisioning and eUICC technology, eSIMs can be controlled and updated entirely remotely without removing and replacing the SIM.
An eSIM is embedded into a device’s motherboard and is not removable like a traditional SIM card. Using remote SIM provisioning and eUICC technology, eSIMs can be controlled and updated entirely remotely without removing and replacing the SIM.
Benefits of eSIMs for CSPs
- Flexibility – eSIMs can be provisioned over-the-air (OTA), meaning they can be switched out much more simply and seamlessly in bulk without physically switching out SIMs.
- Security – Not only are eSIMs less likely to be physically altered or damaged, but they also offer enhanced security, including remote management and encryption.
- Lower costs – Remote provisioning helps lower the costs of hardware changes and upgrades.
- Connectivity – eSIMs can adapt to changing technologies or terminations, making them more future-proof.
- Scalability – eSIMs can empower CSPs to develop a more comprehensive service offering and expand into solutions previously handled by specialist IoT organizations.
What Is an iSIM?
An iSIM, or an integrated SIM, functions similarly to an eSIM, but instead of being attached to the motherboard, it’s located in the device’s System on a Chip (SoC). Like eSIMs, iSIMs have been in the market since 2016 but have not seen the same rise in popularity, with research putting the current number of iSIM devices at just 800,000. The iSIM is potentially more dedicated to the future of Internet Of Things (IoT) devices and in use cases where low power or narrow band is required.
Benefits of iSIMs for CSPs
- Flexibility – Like eSIMs, iSIMs can change carriers OTA without physically removing the SIM
- Faster deployment – As the iSIM is built directly into the SoC, there’s no need to solder it onto the motherboard, enabling quicker deployment.
- Security – iSIMs are more difficult to tamper with than a physical SIM, and remote management offers increased control.
- Power – As the iSIM takes up less space within the device’s hardware, it requires less energy to run, and the close integration into the device’s system means it uses power more efficiently.
What Is a SoftSIM?
Software SIM or SoftSim removes the need for any kind of physical hardware at all, being entirely comprised of, you guessed it, software. Rather than being stored in a physical SIM, information is stored in the device’s memory. The SoftSIM is a much more recent development, with the first fully software IoT SIM only being launched in 2023.
Benefits of SoftSIMs for CSPs
- Flexibility – By requiring no physical component, SoftSIMs allow for more flexibility as they can be utilized in much smaller devices.
- Costs – SoftSIMs have the potential to lower manufacturing costs and production time.
- Damage resistant – eSIMs and iSIMs both carry the risk of being damaged by dust, water, and other risks that can affect devices. This risk is eliminated for SoftSIMs as it isn’t a physical component within the device.
eSIM vs iSIM vs SoftSIM
So, how do these different kinds of SIMs stack up against each other? Depending on the desired use, it could be argued that there’s a place for each. However, when addressing the CSP and MNO market, it becomes clearer which is best suited for use.
The SoftSIM, while quite attractive on the surface with its lack of hardware, isn’t currently regulated, which opens up organizations to increased risks. SoftSIMs are also only stored on a device’s memory, which makes them more vulnerable to hacking.
While the iSIM might appear to have the advantage over eSIMs, being smaller in size, in the context of IoT devices, their varied microarchitecture can lead to complications between the communication of the iSIM and the SoC. It requires also heavy testing by manufacturers.
The iSIM does have promise, with iSIM shipments expected to grow to 300 million by 2027, but adoption today is still small compared with the more widespread and growing use of the eSIM.
Comparatively, Travel eSIM spend is expected to reach $30 billion by 2028, with a market value of over $10 billion. This presents a huge opportunity for CSPs and MNOs to take advantage of, helping to drive revenue and offer customers more effortless global connectivity.
Take advantage of travel eSIM technology today with Telna’s global platform.
Take advantage of travel eSIM technology today with Telna’s global platform.
Glossary
- SIM (Subscriber Identity Module) – A physical card that, when inserted, enables a device to be connected to its carrier services with a fixed profile.
- eSIM (Embedded SIM) - A programmable SIM card embedded within a device, allowing users to switch network providers and manage multiple profiles without needing a physical SIM card.
- iSIM (Integrated SIM) – A SIM card built into the SoC of a device, which allows for remote provisioning without needing to switch out the card physically.
- SoftSIM (Software SIM) – Software stored in the device’s memory, enabling it to be connected to carrier networks without any physical hardware.
- OTA (Over-the-Air) – The ability to switch SIM profiles and providers without physically switching out the card.
- SoC (System on a Chip) – An integrated circuit that combines most or all device components onto a single chip.
- eUICC (Embedded Universal Integrated Circuit Card) – The component of a SIM card that enables switching of providers and profiles OTA.
Remote provisioning – Remote managing of SIM cards and their profiles.
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