When looking ahead to 2022 and beyond, there are plenty of high hopes regarding what the more advanced stages of 5G and can deliver for communication service providers and enterprises. Behind part of that expectation is the less popularly known area of iSIMs, or integrated Subscriber Identity Modules), which play a crucial role in miniaturizing so many consumer devices. Counterpoint forecasted earlier this year that the iSIM market will grow by 290% between 2020-25, with more than 6 billion consumer devices shipped by 2025.
What was once the size of a credit card in the 1990s, the evolved iSIM technology of today will quickly become omnipresent – powering the next generation of 5G use cases, underpinning the use of secure digital identities and disrupting existing IoT value chains.
The benefits of iSIM
From a logistics standpoint, iSIMs provide three key benefits to consumers, enterprises and telcos.
The first of which is miniaturization. iSIMs are only a fraction of a millimeter in size, which is exponentially smaller than eSIMs (embedded Subscriber Identity Modules). This helps manufacturers meet the demand for smaller, thinner and more portable devices. Through miniaturization, iSIMs further reduce cost and power consumption which is vital to IoT and large-scale deployments.
For example, Bayer recently worked with Vodafone Business and others to create a smart label, which used iSIMs as well as low-power mobile connectivity to monitor their supply chain products – giving Bayer unlimited access to the current state of their products and allowing them to take immediate action in case a crisis occurred. This example is just a glimpse into how iSIMs could enhance future manufacturing and supply chain processes.
The second advantage is security. iSIMs are implemented on a secure enclave as part of the device's main core processor, enhancing their security. This could be very useful, not only to verify the identity of devices connecting to a network, but also as the root of trust for the applications running on the device.
Finally, being integrated into the device's main core processor also opens the potential for iSIMs to disrupt existing value chains. For example, by using an RSP platform, device manufacturers can partner directly with telcos and enterprises to remove SIM vendors from the value chain. Given the typically long lead times in ordering and shipping SIM cards, this has the potential to greatly reduce time in the deployment and activation process.
What are the most promising use cases?
While there are a whole host of potential use cases that are enabled by iSIM technology, there are some consumer use cases that stand out immediately.
For example, iSIM-enabled smartphones could spell the end of costly roaming charges that are imposed when you use your phone abroad. Instead of paying costly fees to use cell phones abroad, consumers would be free to sign up with a local telco at the tap of a finger.
Similarly, with iSIM, wearables will also experience large cost – and small size – advantages. While smart watches may be heavily prevalent today, with iSIM, consumers can use smart rings instead to capture and manage biometrics, fitness and wellness, as well as smart glasses to enable AR experiences that let users explore outer space or battle enemies in video games brought to life. Beyond that, iSIMs can even be embedded in smart clothing to monitor sleeping patterns, yoga posture and even identify potential life-threatening conditions.
iSIM technology could even act as the basis for a citizen's digital identity, enabling frictionless access to a range of commercial and public services. This could allow you to handle sensitive data, or receive secure, touchless authorization into buildings, venues and more – something that seems particularly useful as our world adapts to a post COVID-19 future. This is just a sample of the many e-services that iSIM could enable with digital identity.
And perhaps the most obvious, but not least important, iSIMs could also free people from the pain of patchy Wi-Fi coverage and the tedious work of tethering.
While the consumer use cases above are very exciting, enterprise perhaps represents an even bigger opportunity for disruption.
The most apparent is with smart cars. Car manufacturers want secure, flexible and agile solutions to improve the in-car experience – and iSIM fits the bill. iSIM technology will underpin a wide range of services including assisted navigation, breakdown support, remote diagnostics and over-the-air software updates. More importantly for travelers, iSIM will allow seamless and transparent switching of connectivity when cars cross geographical borders. Manufacturers and content owners could also monetize in-car infotainment (videos, games, music, etc.) through "on demand" models.
As mentioned, iSIM technology can also help supply chain logistics meet the basic requirement current information by allowing for near real-time monitoring of supply chains. Suppliers can also leverage iSIM to track large quantities of goods on a global scale using LPWAN (Low Powered Wireless Access Networks) technology and take immediate corrective action if needed. For example, an alert could be triggered if there is a sudden change in temperature or humidity that would damage the goods.
While already used for a range of purposes from farming to security, drones could also be enhanced by iSIM, which could provide a lightweight, secure and power efficient mechanism to connect them to track flight paths, enforce no-fly zones, avoid collisions and provide real-time video feeds.
With regards to utilities, the integrated nature of iSIMs can even help enable smart meters to assure that utility usage (electricity, gas, water) is accurately reported while also helping to quickly catch leaks and reduce the need for field monitoring.
Disrupt or be disrupted
Ultimately telcos have a choice: embrace the changes that iSIM will bring or risk being disrupted by competitors and new entrants to the market. If history tells us anything, telcos should make sure that they don't miss out on this opportunity to innovate and move up the value chain. iSIM is going to become a reality sooner rather than later, and the earlier that telcos adapt, the better their chances to keep their loyal customers and build offers and solutions to win new consumer and enterprise business.
