Meet changing provisioning needs and increase revenuesSIM and Embedded UICC Management solution

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The Internet of Things (IoT) and Machine to Machine (M2M) are among the most important technological innovations of the past decade. Seamless mobile connectivity is currently available at almost every location and for almost any type of bearer with the emergence of IoT/M2M. Services such as connected cars, fleet management, and smart metering are paving the way for whatever is next to come.

Smart cities and smart homes are creating an explosion of the number and type of devices that will be connected—cars, watches, smartphones, utility meters, traffic lights, environmental sensors, tablets, and home appliances for security and assisted living to name a few. The growth of the eSIM market is attributed to the emphasis on remote SIM provisioning for M2M, favorable government regulations boosting M2M communication, and high adoption of IoT technology.

Analytical insights from IoT can lead to valuable business outcomes, including automation, improved productivity, reduced downtime, and enhanced knowledge of what’s going on at any company. The global eSIM market is estimated by ResearchandMarkets.com to grow from $253.8 million in 2018 to $978.3 million by 2023, at a CAGR of 31.0% between 2018 and 2023.

The past 12 months showed an increase in communication service providers (CSPs) and enterprises’ interests in embedded subscriber identity module (eSIM) or embedded universal integrated circuit card (eUICC) as an alternative to removable SIM cards. This is particularly true in the area of IoT/M2M and particularly for use cases such as automotive, fleet and asset management, and industrial automation.

GSMA Intelligence has produced some very interesting market data as well as pictured below showing how the Consumers IoT and the Industrial IoT market will develop over the next couple of years as well as how the market will develop on a per region basis. The numbers are very encouraging and the eSIM technology is surely an enabler for this IoT world to come true.

Figure 1. The deployment of eSIMs will see a rapid acceleration in the coming years—driven largely by connected cars and consumer electronics

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The consumer market is not forgotten, as consumer devices will require a more dynamic pull mode to request CSP profiles. This requirement translates into a big incentive for device manufacturers and CSPs to support the industry-wide adoption of the standards.

Upgrade to eUICC for major advantages

The eUICC enables remote provisioning, in-market localization, and out-of-the-box connectivity, resulting in operational efficiency and improved customer experience. An eUICC is one that is physically integrated into the IoT or consumer device—meaning it cannot be removed and replaced with another SIM.

Compared to the traditional SIM, the eUICC will offer significant advantages to consumers and enterprises such as:

•Expanding the range of devices available that are conveniently small and also cellular-enabled—even some with significant compute functions, such as autonomous driving applications

•Providing superior ability for companies to manage SIM-bearing inventory over long distances and react efficiently to changing supply and demand, thereby mitigating allocation errors

•No physical recall of M2M devices for the enterprises or visit to the point of sale to collect a new SIM for the consumers

Standards bodies such as GSMA (GSMA Embedded SIM Specification) and others are producing new industry standards, fostering more interoperability support among different suppliers. This new generation of IoT/M2M development and connected consumer devices has new applicable to the IoT ecosystem remote provisioning needs. Following the recent developments in eUICC and remote provisioning, the industry has been working on solutions for the IoT/M2M for enterprise and consumer devices markets.

For example, IoT/M2M for large enterprises, including multinational corporations, will use eUICC to optimize existing IoT/M2M-like services and develop new service offerings. Among others, they will exploit the ability to change communications service providers as needed for connected cars. In that instance, an eUICC will need to attach to several CSPs throughout the lifecycle of the connected car and its electronics systems.

For connectivity service providers, being focused on consumers or M2M, this additional flexibility brought by these eUICC than can be reprogrammed, will translate into less physical stocks (i.e., less SIM cards), the opportunity to provide new services to subscribers (i.e., specific three months subscription) and associated profile for people moving to a new country.

New devices and touchpoints offered by multiple service provider relationships—and enterprises including some considered outside of the traditional mobile providers—will draw consumers to new providers. The eUICC will power new connected consumer devices such as smart watches and smart glasses, and generate new revenue streams for CSPs. That’s because one subscriber will be using additional connected devices beyond the traditional smartphone.

For CSPs, it will emphasize the need to create new business models and lead to benefits like these:

•Increase average revenue per user (ARPU) and market share, and address other markets (such as M2M and IoT, and connected consumer devices)

•Increase subscription penetration rate and adoption; so far it has been low on tablets and laptops because Wi-Fi was preferred

•Generate additional revenues on companion connected device subscriptions (for example, smart watch and smart glasses)

•Grow revenues and address the needs of the enterprise market segment with a connectivity management platform with SIM/eUICC management and potentially device management for a fleet of M2M and IoT devices

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Combine the best of both options

The SIM and Embedded UICC Management solution from HPE addresses the remote provisioning of traditional and embedded SIM cards.

Remote provisioning is the ability to remotely change the SIM profile on a deployed SIM without having to physically change the SIM itself. This technology can be implemented on several SIM form factors and for various market segments—as long as they support the right standards, including removable and soldered SIMs. At its most basic level, remote provisioning is about providing connectivity credentials that ensure the dataflow to and from the end device through mobile networks and changing these credentials over time as need be.

This will enable a change in the in SIM lifecycle model, from the linear model used today to an outcome-based model with remote provisioning, making it more efficient and cost effective.

To an outcome-based model with remote provisioning

From a linear model used today

Manufacture SIM Select MNO Personalize

Source: GSMA Embedded SIM/M2M

Manufacture SIM Basic personalize(provisioning profile)

Distribution

Distribution

SIM activation Usage End of life

Pre-issuance Post-issuance

Pre-issuance Post-issuance

Personalize (operational profile)

Select/change MNO

Usage

End of subscription

Figure 2. SIM lifecycle model

The SIM and Embedded UICC Management solution is tackling the needs of enterprise and consumer market remote provisioning. Leveraging on the HPE Dynamic SIM Provisioning (DSP) for subscription lifecycle management product and adding the HPE Remote SIM Provisioning Manager (RSPM) for playing the role of eUICC subscription manager as per GSMA standards, SIM and Embedded UICC Management is delivering a complete framework for managing UICC traditional and eUICC SIM cards including an innovative self-care portal approach for enterprise customers—the HPE Connectivity Management Platform.

•With SIM and Embedded UICC Management, CSPs will gain new business opportunities by offering flexible connectivity services with minimum impact to their current network infrastructure.

•Business customers, module makers, integrators, and IoT and M2M service providers—whose product lifecycles are long and complex—will enjoy the benefits of SIM capabilities and mobile connectivity with enhanced flexibility regarding their contracts.

•Consumers will enjoy a seamless experience on any type of devices, anywhere and at any time.

Unlocking opportunities for M2M segment

One of the main constraints to optimizing the value chain with connected modules is the current SIM card. The traditional SIM card supports only one M2M association with one CSP, and that association needs to be defined when the SIM card is personalized as part of the manufacturing process.

If that assumption is suitable for typical consumer SIMs, the more fragmented IoT/M2M ecosystem will struggle with depending on the traditional SIM card lifecycle. This is due to some notable differences with consumer business: The final location and even IoT/M2M service provider is not known during production and integration cycles; and connected modules are remotely located and embedded in other equipment, sometimes inaccessible and often hermetically sealed. In addition, product lifecycles are longer than the consumer market, adding constraints to the SIM lifetime and the number of potential operations.

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The need to define the association at the early stage of the lifecycle and the impossibility of changing SIM cards is creating severe limitations for many verticals. It’s also an inhibitor for IoT/M2M business development that uses mobile connectivity. One solution would involve supporting the remote update of the association at any time and phase of the lifecycle. There also would be support for various environmental conditions for the SIM and new form factors.

GSMA established a framework that supports such a remote update, extending existing processes and interfaces used today for SIM personalization processes. The framework focuses on three use cases that would support the more flexible IoT/M2M SIM lifecycle:

•Remote Over The Air provisioning of one or more CSP credentials into an eUICC

•Remote Over The Air enabling and disabling the CSP credentials within an eUICC, enabling a change of active CSP

•Deleting Over The Air CSP credentials within an eUICC

Following GSMA recommendation, the HPE Remote SIM Provisioning Manager includes a Subscription Manager-Data Preparation (SM-DP) and a Subscription Manager-Secure Routing (SM-SR) for the M2M use cases. These facilitate and secure the remote management of different CSPs’ credentials after an IoT/M2M device with an embedded SIM has been deployed in the field.

The HPE Connectivity Management Platform provides an initial, low-cost answer for CSPs to cater and adapt to the growing needs of the IoT/M2M market and protect their margins—even with the lower associated ARPUs. This component implements self-serviced and automated management of the UICC and eUICC subscriptions. It has the capability to create and enforce differentiated subscription packages to meet IoT/M2M enterprise customers’ specific needs.

M2M/IoT device/SIM-eSIMs

Enterprise admin

Secure and private system accessCharge enterprises per

SIM-eSIM/device managed

Over TheAir

HPE Dynamic SIM Provisioning

HPE Connectivity Management Platform

AdaptersNetwork

subsystem

Admin/IT support portal

Self-service portal

Workflow manager

HPE Remote SIM Provisioning ManagerConsumersM2M

Secure routing

Data preparation

Dynamic in a prepaid market with high churn

Over TheAir

eUICC subscription manager

Access to external eUICC subscription manager service

providers

Data preparation+

Figure 3. HPE Connectivity Management Platform

Trusted systemeUICC s ubscription manager

Secure link

Profile loading

keys

eUICCOTA keys

Profilecreation

Profiledownload and

installation

CSP A eUICCCSP B

Securerouting

Data preparation

SIM

Figure 4. For M2M use cases

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Additionally, the need for self-service management becomes increasingly critical as the IoT/M2M market grows, and the number of small to medium-sized vendors requesting SIM cards and other services increases. CSPs do not have the structure or bandwidth to deal with all of these different customers. And they need automated processes and self-service solutions to reduce their OPEX.

With the SIM and Embedded UICC Management solution for the enterprise market, CSPs will:

•Generate additional revenues on IoT subscriptions with online management tools

•Grow their business with the enterprise/corporate segment

•Capture market share of IoT/M2M subscriptions

•Embrace new IoT opportunities

Be the consumer’s companion

The mobile industry also released a new global SIM specification that enables consumers to remotely and independently connect companion consumer devices such as smart watches, health bands, tablets, and other devices to a mobile network.

The smartphone will be a primary device that can be used to provide capabilities to a companion device for remote SIM provisioning. The companion device relies on the capabilities of a primary device for remote SIM provisioning.

The SIM card stores an operator-defined profile that is programmed during manufacture. The CSP’s profile is the information that enables identification and authentication of the SIM card with the selected mobile networks. If one consumer wants to change service provider, he needs to replace physically his original SIM from MNO A with a new one from MNO B. Similarly, if the operator buys a new connected device with a SIM slot, and wants to enable the connectivity service, it needs to slot a new physical SIM into it.

Smartphoneprimary

Connected entertainment companion

Connected watchcompanion

Tabletcompanion

Figure 5. Primary and companion devices

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The GSMA eUICC specification encourages device manufacturers to create a new generation of lighter, mobile-connected devices that are better suited for wearable technology applications. These new smart connected devices use smaller chips that cannot accommodate as much space as a typical SIM card but retain their security benefits.

Consumers will benefit from the specification in several ways:

•Connect companion devices that will operate independently of a smartphone, with their own subscriptions without adding a new SIM card

•Experience a range of new, lighter mobile connected companion devices

•Enjoy securely connected mobile devices with the privacy of their personal data guaranteed by the quality of service delivered by mobile operators and the SIM

When a consumer purchases a service package from a specific CSP, the CSP profile is downloaded and saved onto the eSIM memory. If a second operator package is purchased later, the new CSP profile is downloaded and also saved to the eSIM. Both CSP profiles are now saved on a single SIM card, and the user can switch between the two installed profiles, one profile is only active at any time. This swap effectively mimics the actions a user would take when swapping the SIM card in a device, except that nothing physically has changed on the device with eSIM.

GSMA defined a consumer remote SIM specification. A global approach and consistent user experience will expand the IoT by enabling consumer device manufacturers to build a new range of products for global deployment based on this common embedded SIM architecture.

HPE is supporting the specific consumer use cases with the implementation of a Subscription Manager-Data Preparation+ (SM-DP+) in its HPE RSPM per GSMA specification. It enables consumers to remotely and independently connect companion consumer devices such as smart watches, health bands, tablets, and other devices to a mobile network and request a change of service provider over time.

With the SIM and Embedded UICC Management solution for the consumer market, CSPs will:

•Generate additional revenues on companion device subscriptions with online management tools

•Upsell to consumers with digital home, connected home, and connected car services, for example

Discover the HPE difference

HPE is uniquely positioned for SIM and Embedded UICC Management as a trusted integrator, for on-premises deployment, leveraging our rich portfolio of leading products.

•The HPE Telecom solution components are widely deployed across the world, with several CSPs operating their HPE Dynamic SIM Provisioning systems since 2008.

•HPE is a device and SIM vendor agnostic player, and its SIM and Embedded UICC Management solution is being proactively tested with a wide range of device and eSIM/SIM vendors.

•HPE has developed its own Over The Air (OTA) software stack to administrate SIM cards via Remote File Management (RFM) and Remote Application Management (RAM) over multiple transport protocols.

•HPE has a proven and market leading Entitlement Server—HPE Device Entitlement Gateway (DEG)—to help its customers to deploy an end-to-end solution for eSIM consumer devices, and required to comply with large consumers connected eSIM devices makers’ device entitlement requirements.

•HPE can support the deployment of multi-device one number like or other type of new valued added services leveraging on eSIM technology introduction.

•HPE is investing into the IoT space and has complementary products on its portfolio to help its customers for addressing the enterprise segment needs, such as the HPE Connectivity Management Platform (CMP).

•The use of NFV technology can bring extra benefits and flexibility when deploying new capabilities.

•HPE has a set of HPE Pointnext Security professional services for helping its customers to design and prepare their eSIM remote management platform to be GSMA SAS SM scheme compliant and get successfully their GSMA certification.

Explore HPE capabilities designed for CSPs

HPE Solution Lifecycle Services—Helps communications and media industry organizations realize the full value of their solutions—from planning and assessment through testing, deployment, operation, and continuous improvement. Each service area leverages proven processes and best practices to balance capital expenditures (CAPEX) and operating expenses (OPEX). It reduces risk while keeping projects on time and operations running smoothly.

HPE Business Transformation Services—Helps define business transformation and translate strategies into actionable solutions.

HPE Solution Implementation Services—Offers a low-risk project lifecycle across design, development, customization, and network and system integration.

HPE Solutions Management Services—Increases the operational efficiency of existing solutions, including reactive, proactive, operational, and enhancement services.

Outsourcing options—Designed by HPE to improve business agility while reducing OPEX. Options include IT and infrastructure outsourcing, application management, and business process outsourcing.

Learn more at hpe.com/csp/devicemanagement

© Copyright 2017–2018 Hewlett Packard Enterprise Development LP. The information contained herein is subject to change without notice. The only warranties for Hewlett Packard Enterprise products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. Hewlett Packard Enterprise shall not be liable for technical or editorial errors or omissions contained herein.

4AA6-8840ENW, September 2018, Rev. 3

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