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Mobile and Connected Device Strategies

Embedded SIMS Might Be Key to Simplifying M2M

Daily Insight | Brian Partridge | February 12, 2013

For more, read the report.

 

Ericsson and Gemalto have joined forces on embedded SIMS to make it easier to connect vehicles with M2M. The telecom industry has been working to create standardization for embedding SIMs for remotely controlled M2M applications, but Ericsson wanted to beat the rush.

 

According to Computerworld, Ericsson’s head of Device Connection product line, Miguel Blockstrand, says using embedded SIMs has several advantages, including a later activation during the production process of a car. SIM cards can be remotely activated whenever it arrives in the country it will be sold in, rather than locally employing someone to put a card in every car. Embedded SIMs also give customers the option to change the operator over-the-air and copy the SIM card from one device to another, which is convenient for people who switch cars and want to take services from their SIM from one car to another. Ericsson plans on showing off its integration with Gemalto at Mobile World Congress at the end of the month.

 

Yankee Group VP of Research Brian Partridge comments

 

“Embedding programmable SIM functionality takes a step or two of complexity out of the equation for M2M deployments and delivers a radical change in traditional SIM provisioning process. The programmable embedded SIMs as described by Ericsson and Gemalto enable the ability to change network providers without changing out the physical SIM—instead accomplishing the change via over-the-air via software update. This change to SIM provisioning process can in theory put power back into the hand of customers who can exert more pricing leverage on network airtime providers due to this ease of operator transition—somewhat similar to the effect local number portability has had on the communications industry competitive landscape. While this scenario can and will occur, it’s more likely that the coupling of M2M service delivery platforms such as Ericsson’s with embedded devices enabled by companies like Gemalto will create significant solution stickiness and resultant barrier to changing network providers on a whim. The onus is on the network operators to ensure that M2M service delivery platform value is enough to deflect temptation to move to lower cost airtime providers.”

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