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Embedded SIM cards to dominate M2M space

Steve Rogerson
August 25, 2016
Embedded SIM cards will increasingly dominate the M2M space, accounting for more than half of all connections by the end of the decade, according to Juniper Research.
According to the study, the introduction of the GSMA’s embedded specification is likely to fuel the opportunity for service providers to offer remote provisioning of SIM cards. The study claimed that this in turn would enhance the capabilities of service providers to update and augment offerings and subscriptions.
Additionally, the study argued that migration to OTA (over-the-air) provisioning would facilitate a range of business models, potentially increasing the lifetime value of M2M subscription while also reducing costs.
The report highlighted the increased benefits that embedded SIMs would offer to customers across an array of verticals, as remote provisioning would oblige operators to compete on pricing, functionality and customisation capabilities.
The research also claimed that the reduced cost and flexibility afforded by embedded technology could be instrumental in increasing take-up in key verticals such as agriculture within developing markets.
Research author Sam Barker said: “By making M2M affordable, the introduction of the embedded model can in turn allow farmers in regions such as sub-Saharan Africa and developing Asia to increase their yield, boosting crop production and helping to address the rising demand for food.”
Smart metering and connected car connections will comprise the majority of all cellular M2M embedded connections over the next five years, says the report. And 3G connections will comprise half of all cellular M2M connections in 2021, due to the need for an affordable and low speed service.
It advises network operators to capitalise on the growth of M2M by offering customisable M2M platforms that offer a variety of simple billing models.