How hybrid eSIM management is helping MNOs reduce cost and find new revenues

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eSIM management

The plastic SIM card has been a key enabler of mobile connectivity for over 25 years, but further expansion of the telecommunications market requires mobile network operators (MNOs) to upgrade their infrastructure for the era of hyper-connectivity andeSIM-based devices. 

The shipment numbers of eSIM-based devices are projected to grow with a compound annual growth rate (CAGR) of 27 percent between 2018 and 2025, reaching approximately two billion units by the end of the forecast period.The growth of the eSIM market is driven by two distinct market segments: consumer and machine-to-machine (M2M).

While the consumer segment requires a high degree of end-user interaction, the M2M segment serves theneeds of business-to-business customers, specifically in the Internet of Things (IoT) market.For MNOs to take full advantage of the eSIM opportunity, they must be able to manage both consumer and M2M eSIM devices, and hybrid eSIM management is emerging as the most cost-effective way to do it. 

What Is Hybrid eSIM Management?

The GSMA created separate solutions for the consumer and M2M segments. The GSMA Remote SIM Provisioning Consumer solution requires Subscription Manager Data Preparation Plus for Consumer (SM-DP+) and Subscription Manager Discovery Server (SM-DS) and follows a client-driven (pull model) to enable control over remote provisioning and local management of operator profiles by the end-user of the device. 

On the other hand, the M2M solution requires Subscription Manager Data Preparation (SM-DP) and Subscription Manager Secure Routing (SM-SR) and utilises a server-driven (push model) to provision and remotely manage operator profiles.

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Traditionally, MNOs would need two separate eSIM management solutionsto enable remote SIM provisioning of consumer and M2M devices. That’s far from ideal because having two project implementations to complete doubles the amount of work, time, and money required to benefit from eSIM by expanding into emerging markets, such as wearables, consumer electronics, energy, and automotive.

Hybrid eSIM management combines the management of consumer and M2Mdevices on a single platform with one pricing model, one implementation, and one solution to maintain. With hybrid eSIM management, MNOswill only interact with a single provider, arrange deployments with one project, and get a single bill at the end of the project.

What Makes Hybrid eSIM Management the Right Choice? 

The advantages of hybrid eSIM management stem from its ability to support multiple use cases across all verticals with just one solution to implement and maintain, and they include: 

  • Simplified setup: With a single solution for consumer andM2M markets, MNOs can avoid duplication of effort by completing only one simplified setup. Avoiding two separate project implementations means faster time-to-market, less strain on business processes, and a lower learning curve.
  • Cost-efficiency: Hybrid eSIM management is cost-efficient for the same reasons that make it easier to implement than traditional eSIM management solutions. Its cost-saving nature becomes especially apparent in the long run, thanks to significantly lower maintenance costs. 
  • Growth of revenue: MNOs that choose hybrid eSIM management can instantly unlock revenue opportunities in the consumer and M2M market segments by providing connectivity to not only consumer devices such as smartphones and tablets but also smart utility meters, vehicles, industrial sensors, and others. 
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Getting Started with Hybrid eSIM Management

MNOs that would like to reap the benefits of hybrid eSIM management need to partner with a GSMA-certified eSIM provider with a proven track record of enabling operatorsto capitalize on the rapidly growing eSIM opportunity.

Workzis one of only six complete eSIM providers in the world certified by the GSMA’s Security Accreditation Scheme (SAS), which ensures that all of its remote SIM provisioning and management solutions are highly secure, interoperable, scalable, and future-ready. 

The Workz hybrid eSIM management platform is the first-to-market solution of its kind to enable remote management of subscriptions on all eSIM devices across the consumer and M2M markets. Its SM-SR,SM-DP, and SM-DP+ components form a complete eSIM management platform, and MNOs can even choose between two hosting options: cloud and onsite. 

The cloud hosting option is perfect for operators who would like to avoid large setup fees and maintenance costs by embracing a plug-and-play, OPEX-friendly model. Where as, the onsite hosting option requires a CAPEX investment but affords the MNO two key benefits; one centralised server location for security and cost-efficiency for those that have operations in multiple countries, and complete control of data to avoid legal compliance issues in countries where data is required to be held in country. Both hosting options can be integrated with an entitlement server that enables the provisioning of companion eSIM devices .

Conclusion 

The eSIM technology is transforming mobile connectivity, and MNOs need toupgrade their infrastructure to takefull advantage of the opportunity created by it. Hybrid eSIM management is quickly emerging as the most cost-effective, flexible, and easily deployable solution capable of serving bothconsumer and M2M devices.

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