Embedded SIMs for Mobile Devices, Tablets, eReaders, and Consumer Electronics

There is much debate and discussion around the use of embedded SIMs. To date, this has been limited to a small proportion of M2M applications although the potential is there for them to be employed in a wider range of devices. This includes consumer electronics devices as well as mobile phones; however, for this to occur there needs to be a shift in MNO strategies and business practices.

This report examines the barriers and drivers surrounding embedded SIMs and analyses the pros and cons in terms of their wider deployment. Balanced discussion of major factors, including flexible tariffs, subscription management, device distribution, and activation, as well as alternative business models and standards are presented in an objective manner. Likely outcomes, including forecast shipments for expected, upside, and downside scenarios are delivered with analysis of the differing factors affecting each.

Technical, market, and summary section form the basis of the report whilst the final chapter reviews the possible winners and losers in the event of the different outcomes, taking into account the positioning and strategies of different stakeholder groups as well as individual companies.

Table of Contents

• 1. MAIN FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
• 2. EMBEDDED SIM - CURRENT SITUATION AND FUTURE SCENARIO
  • 2.1. Definition of an Embedded SIM
  • 2.2. This Is Not a Virtual SIM
  • 2.3. M2M Background
  • 2.4. The Need for OTA Activation, Provisioning, and Subscription Management
  • 2.5. Development of Standards and Procedures
  • 2.6. Can Security, Certification, and Liability Issues Be Overcome?
  • 2.7. The Expected Timeline for Progression
• 3. THE CASE FOR EMBEDDED SIMS IN HANDSETS AND CE DEVICES
  • 3.1. Embedded SIMs Could Open Up New Revenue Streams
  • 3.2. The Market Cannot Grow Unless Consensus Is Reached
  • 3.3. Subscription Managers and Business Models
  • 3.4. SIM Card Market is Divided - Cannibalization versus Opportunity
  • 3.5. Will Device OEMs Want to Compete with MNOs?
  • 3.6. IC Vendors
  • 3.7. What Will Be the Impact of Embedded SIMs on Other Secure Hardware Implementations in Devices?
  • 3.8. Best Case Scenario Forecast and Level of Risk
  • 3.9. Will Regulation Open Up the Market for Third-party Service Providers and Aggregators?
• 4. INNOVATIVE AND BOLD MNOS AND OEMS CAN BOTH PROSPER WITH EMBEDDED SIMS
  • 4.1. MNOs Could Fall into Two Camps and Be Both Winners and Losers
  • 4.2. Gemalto and G&D Best Positioned to Maximize the Potential of Any Move Away from Commoditized Hardware to Software and Services; Oberthur Close Behind
  • 4.3. Morpho and Major Asian Smart Card Vendors Could Be the Major Losers
  • 4.4. Infineon and STMicroelectronics Well Positioned for Embedded SIMs in M2M (and Other Applications?)
  • 4.5. What Impact Will Disruption Have on NXP and Samsung Semiconductors?
  • 4.6. Apple, Google and Their Peers Will Be Quick to Move - Will Samsung (Devices) and Micro

Tables

1. Embedded SIM Shipments by Region, World Market, Likely and Best Case Scenario Forecast Comparison: 2011 to 2017
2. Mobile Penetration, SIM Connections, Embedded SIM Shipments by Device Type, World Market, Forecast: 2011 to 2017
3. Mobile Penetration, SIM Connections, Embedded SIM Shipments by Device Type, Americas, Forecast: 2011 to 2017
4. Mobile Penetration, SIM Connections, Embedded SIM Shipments by Device Type, Asia-Pacific, Forecast: 2011 to 2017
5. Mobile Penetration, SIM Connections, Embedded SIM Shipments by Device Type, Europe, Forecast: 2011 to 2017
6. Mobile Penetration, SIM Connections, Embedded SIM Shipments by Device Type, Middle East & Africa, Forecast: 2011 to 2017
7. Best Case Scenario Embedded SIM Shipments by Device Type, World and Regional Forecast: 2011 to 2017

Companies Mentioned

• Microsoft Corporation
• Be
• Samsung
• GSMA
• ETSI
• STMicroelectronics
• Gemalto
• Google
• Open Technologies
• Impact Technologies LLC
• Oberthur Technologies
• Source Technologies
• Apple Inc.