The use of traditional handset SIM cards presents challenges for insertion and replacement in M2M products for transport, consumer electronics, utilities and other applications, which can add cost and create barriers for sales. To overcome this, a specific non-removable SIM embedded into the M2M device at the point of manufacture enables remote provisioning with the subscription profile of the operator providing the connectivity. This eliminates the need to replace SIM cards over the lifetime of each M2M product, reducing ongoing operational and logistical costs and helping to streamline the retail process.

This research report, prepared for the GSMA as an independent view of the benefits for business of the GSMA Embedded SIM Specification, examines the particular opportunities in the auto, consumer electronics, smart metering and other key sectors. As part of the work, senior representatives from these industries were interviewed together with Mobile Network Operators, MVNOs, SIM vendors and M2M hardware vendors. The consensus reached during the research is that devices installed by manufacturers must adhere to a single specification that is standardised globally through a variety of mobile operators in order to open up the full market opportunity.

Press release: GSMA Embedded SIM Specification set to transform high volume M2M/IoT market according to Beecham Research