The number of eSIMs installed in connected devices globally will increase from 1.2 billion to 3.4 billion in 2025, representing a growth of 180 percent, mainly driven by adoption from tech powerhouses such as Apple and Google, reported a new study by UK-based market research company Juniper Research.
According to the forecast, independently assessed eSIM adoption and demand in the consumer sector, industrial sector, and public sector predict that the consumer sector will account for 94 percent of global eSIM installations by 2025.
The report anticipates established adoption of eSIM frameworks from consumer device vendors, such as Apple and Google, will accelerate growth of eSIMs in consumer devices ahead of the industrial and public sectors.
“[The forecast] anticipates that established adoption of eSIM frameworks from consumer device vendors, such as Apple and Google, will accelerate the growth of eSIMs in consumer devices ahead of the industrial and public sectors,” Juniper Research said.
According to the report, Global eSIM deployments across all consumer verticals will increase by 170 percent over the next four years, with widespread adoption reliant on backing from network operators.
“Juniper Research urges manufacturers to place pressure on operators to support eSIM frameworks and accelerate market maturation,” the study stressed.
However, according to Farouk Tabbal, eSIM product manager at Monty Mobile, a leading VAS & telecom solutions provider, and an international SMS wholesale intermediary hub, in order for eSIM technology to boom, three main entities should work together, starting with OEMs.
“OEMs, DP+ providers have been long adopters of eSIM technology, and consistently calling for telecom providers to make the switch from physical to eSIM,” Tabbal told Inside Telecom, highlighting that OEMs (original equipment manufacturer) launched many devices that are eSIM supported yet devices that support eSIM are still quite expensive and not affordable by everyone.
But there’s also another issue.
“Operators are still stuck to their traditional business models of relying on physical SIMs, since the change would translate into an impact on both their frontend and backend network infrastructures, which would require resources and time for the switch to happen,” Tabbal explained.
From a commercial perspective, telcos are still hesitant to make the switch to the technology since the cost of setting eSIM profiles is relatively similar to the actual physical card, in addition, “telcos have fears over increased churn which in my opinion it is an unjustified fear.”
This paves the way for the third player to step in, remote SIM provisionary providers, such as Monty Mobile, who are looking to provide operators with eSIM services in the form of Software-as-a-service (SaaS) for a yearly fee.
“It is these businesses that will surely help telcos to push for the rise of eSIMs at a much more cohesive rate,” Tabbal told Inside Telecom. He later highlighted that there are almost 200 out 1,000 operators around the world who have fully integrated the technology within their offerings, which is considered a very low number.
“At the end of the day, this is a technological advancement which will inevitably grow at a rapid rate, thus, forcing telcos to either move now and become an early beneficiary of their foresight or later and play catch-up,” he noted.
“This technology is having a silent revolution and quickly, yet subtly creating momentum,” Tabbal added.
Tabbal explained that telcos need to consider that eSIMs completely removes the logistical costs of manufacturing physical SIMS, which would later allow operators a sea of profitable possibilities to use this technology for.
Juniper highlighted, however, that fragmentation of hardware vendors in the cellular Internet of Things (IoT) device market will necessitate each vertical to adopt a combination of wireless technologies, hardware, and management tools. “In turn, specialist vendors will emerge that provide robust eSIM form factors for industrial environments,” the research firm added.
Three key areas of focus for eSIM adoption in the industrial sector will arise: oil and gas, manufacturing, and logistics. “The development of rugged form factors will position vendors well to capitalize on the market, as eSIM installations in these verticals grows from 28 million units in 2021, to 116 million by 2025,” the report said.
From a telco perspective, Tabbal considers that provider should be the main players spearheading IoT and M2M efforts since they have the potential to unlock various revenue streams across the board.
“Think of it this way, faster network connection, more IoT and M2M integration, more data being used to run everything smoothly, which would subsequently translate into more revenue to providers; however, this definitely requires carriers to beef up their network infrastructure,” he highlighted.
Ultimately, ensuring convenience for the end user must remain the top priority for eSIM management platform providers. To do so, platform providers must provide a level of service comparable to that found with traditional SIM deployments.
Several operators have taken note of this and have already started to change their business strategies to meet the ongoing tide of eSIMs, especially within the IoT space. Earlier last week, Norwegian telecoms provider Telenor Group announced that it will be unifying its IoT services across the Nordic region and internationally, placing them under one large portfolio.
“Effective immediately, Telenor IoT will be offered from all Telenor business channels in the Nordics, and internationally by Telenor Connexion and through selected partners,” the provider said in a statement.
As a part of introducing Telenor IoT, a new operating model is being launched to leverage on Telenor’s global competency, synchronize product development, accelerate the customer facing business and improve technical support.
Telstra announces $157 million co-investment fund to extend coverage
Australian operator Telstra has announced a $157 million co-investment fund to generate additional investment in expanding regional mobile coverage.
This funding is in addition to the $118 million that Telstra plans to invest in the next 12 months to expand regional connectivity.
Telstra CEO Andrew Penn said the co-investment fund would run over the next four years and was aimed at enhancing and extending mobile coverage through stimulating infrastructure co-investment with governments, local councils and businesses in areas that would otherwise be difficult to justify on economic grounds.
“Technology is going to play a major role in meeting both of these aspirations – perhaps the most important role. Telecommunications technology is continuing to advance from 3G to 4G, 4G to 5G, from ADSL to NBN and from copper to fibre, satellite and mobile, and this is helping to bring new solutions to solve old problems,” he said in a statement.
Penn added: “In addition to the newly announcement co-investment fund, Telstra would be investing a further AUD 150 million ($118 million) over the next 12 months to improve its regional networks in a number of important areas.”
Both the $118 million and $157 million allotments are both backed up by a number of projects that has been awarded by the federal government, the telco claimed.
This includes the Regional Connectivity Program — which is set to receive $19.3 million in additional funding by the government in the upcoming Budget for 2021-22 — with Telstra working with the federal government to power $43 million worth of network upgrades.
Penn also claimed it was the only major mobile provider to both win projects and commit funding to improve services.
He said the telco has also participated in the federal government’s Mobile Black Spot Program, with it contributing “more than double the capital investment of the rest of the industry put together to build more than two thirds of the mobile black spot towers in the program,” he claimed.
Among the projects are eight mobile coverage improvements from Telstra, two mobile coverage upgrades from Pivotel, three projects upgrading fixed wireless coverage, two improving satellite broadband connectivity, and one project more than $2.53 million to shift from satellite coverage to fiber to the premise in Halls Creek.
Three Chinese telcos to be delisted from NYSE
Three major Chinese telcos said late last week that they will be delisted from the New York Stock Exchange (NYSE) after the latter denied their requests for appeal, Reuters reported.
The delisting comes in line with the U.S.’ Communist Chinese military companies (CCMC) under the National Defense Authorization Act of 1999, enacted by the former Trump Administration.
The CCMC designation bars any U.S. investors from purchasing any shares or stakes from companies that the government considers to be linked to the Chinese military.
The three telcos – China Mobile, China Unicom, and China Telecom Corp – had filed an appeal request to the NYSE to review their delisting as soon as U.S. President Joe Biden was sworn in as the 46th president back in January.
The telcos noted in separate statements last week, that they expect the NYSE to notify regulators of their delisting after the appeal was rejected.
According to Reuters, the companies had highlighted that the delisting will become effective ten days after the exchange files a Form 25 to the U.S. Securities and Exchange Commission.
The three telcos join the likes of Huawei and ZTE who have also been delisted – however, budget smartphone maker Xiaomi was able to escape the same fate after a U.S. federal judge rolled back the blacklisting on the company citing insufficient evidence that Xiaomi posed a national security threat.
NY: Broadband cos paid for 8.5M fake net neutrality comments
The Office of the New York Attorney General said in a new report that a campaign funded by the broadband industry submitted millions of fake comments supporting the 2017 repeal of net neutrality.
The Federal Communications Commission’s contentious 2017 repeal undid Obama-era rules that barred internet service providers from slowing or blocking websites and apps or charging companies more for faster speeds to consumers. The industry had sued to stop these rules during the Obama administration but lost.
The proceeding generated a record-breaking number of comments — more than 22 million — and nearly 18 million were fake, the attorney general’s office found. It has long been known that the tally included fake comments.
One 19-year-old in California submitted more than 7.7 million pro-net neutrality comments. The attorney general’s office did not identify the origins of another “distinct group” of more than 1.6 million pro-net neutrality comments, many of which used mailing addresses outside the U.S.
A broadband industry group, called Broadband for America, spent $4.2 million generating more than 8.5 million of the fake FCC comments. Half a million fake letters were also sent to Congress.
The goal of the broadband industry campaign, according to internal documents the attorney general’s office received, was to make it seem like there was “widespread grassroots support” for the repeal of net neutrality that could give the FCC chairman at the time, Ajit Pai, “volume and intellectual cover” for the repeal.
The agency is supposed to use the comments it receives, from industry and public-industry groups and the public, to shape how it makes its rules.
The FCC did not immediately answer how or if it has changed its commenting process, but the acting chairwoman, Jessica Rosenworcel, said in a prepared statement that “widespread problems with the record” of the 2017 proceedings “was troubling at the time” and the agency has to learn and improve the commenting process.
The fake comments had high-profile victims. In 2018, two senators, Democrat Jeff Merkley of Oregon and Republican Pat Toomey of Pennsylvania, said their identities were stolen to file fake comments for the net neutrality proceeding. “We were among those whose identities were misused to express viewpoints we do not hold,” they wrote to the FCC’s then-chairman, Pai, asking him to investigate the fake comments.
Many expect the FCC to try to reinstate net neutrality rules once a third Democratic commissioner is appointed. The agency is currently split half Democrat and Republican, which makes undoing the repeal unlikely.
Broadband for America’s website says its members include AT&T and Comcast as well as major trade groups for the wireless, cable and telecom industries.
The campaign hired companies known as lead generators which created the fake comments, but that the attorney general’s office had not found evidence that the broadband companies had “direct knowledge of fraud” and thus they had not violated New York law, according to the report.
Still, the report criticized the broadband industry group’s behavior as “troubling,” saying the campaign organizers ignored red flags and hid the broadband industry’s involvement.
The lead generators copied names and addresses they had already collected and said those people had agreed to join the campaign against net neutrality, the report said. One company copied information that had been stolen in a data breach and posted online.
The attorney general, Letitia James, also announced agreements with three of the companies that were responsible for millions of the fake comments, Fluent Inc., Opt-Intelligence Inc. and React2Media Inc., that require them to change practices in future advocacy campaigns and pay $4.4 million in fines. The companies did not reply to requests for comment.
The attorney general’s office and other law enforcement agencies are still investigating “other responsible parties,” according to the report.
AT&T, Comcast and industry trade groups NCTA and USTelecom did not respond to questions.
By TALI ARBEL AP Technology Writer.
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