The Practicalities of eSIM for IoT:

A Hands­On Guide for Businesses

and Enterprise Companies

Sponsored by Published by
Introduction by
GSMA Intelligence
Momentum for eSIM is accelerating around
the world, opening up new opportunities for
mobile ecosystem players and enabling new
benefits for enterprises and consumers.
GSMA Intelligence’s latest research shows that
eSIM deployments are on the rise, OEMs
continue to launch new eSIM devices (some of
which also have 5G technology) and around
200 mobile operators have already launched
commercial eSIM services.
That’s significant progress, but what about
eSIM adoption?
The latest data published by the Trusted
Connectivity Alliance indicates an upward trend.
eSIM shipments increased by 83% year­on­year
in 2020, a significant acceleration compared to
50% in 2019. Furthermore, eSIM profile
transactions increased by over 300% year­on­
year. Growth is driven by the launch of new
eSIM smartphones, smartwatches, IoT devices
and deployments in the automotive sector.
eSIM, however, is not a one­size­fits­all
proposition. The consumer and enterprise
segments have different market and technology
dynamics. While eSIM is already mainstream in
the consumer market, deployments in IoT are
more fragmented. Automotive leads the way
and is a benchmark for other verticals. Today,
connected cars account for a significant share of
eSIM connections, with eSIM functionality
available in a growing proportion of new cars.
Regulation (especially for eCall) is also driving
eSIM deployments. Other IoT vertical sectors
will benefit from eSIM, especially if the
respective ecosystems will move from today’s
single initiatives to sector­wide deployments.
eSIM smart meters and eSIM­enabled solutions
for aircraft, healthcare and logistics are already
seeing momentum in various countries.
Looking to the future, the addressable market
for eSIM in IoT can be big. GSMA Intelligence
forecasts that the number of IoT connections
will reach 24 billion globally by 2025, of which
3.6 billion will be connected through licenced
cellular IoT technologies, cellular M2M and
licenced LPWA (LTE­M and NB­IoT). The
explosion of the IoT market provides
significant room for growth in the cellular IoT
space and, within it, eSIM adoption.
eSIM could become the primary means of
cellular network authentication in various IoT
use cases, especially if 5G adoption reaches
scale in the enterprise market (5G IoT). But
what do enterprises think of eSIM? GSMA
Intelligence Enterprises in Focus research,
based on regular discussions and work with
business decision makers, reveals important
insights. Awareness of eSIM is high (only 2% of
enterprises across most vertical sectors are
not familiar with eSIM) and 83% of enterprises
said that eSIM is either very important (40%)
or somewhat important (43%) to achieve
success in their future IoT deployments.
This means that there is a business opportunity
out there. But how can the mobile and IoT
ecosystems capture this opportunity? To reach
critical mass, eSIM solutions need to help
address some of the top challenges that
enterprises face when deploying IoT solutions,
such as integration with existing technology
and legacy systems, data security concerns and
cost of implementation. Everyone has a role to
play: mobile operators, OEMs, eSIM vendors,
and providers of IoT devices, platforms and
applications. As eSIM becomes part of day to­
day business, a clear roadmap and strategy will
be crucial to capture and monetise the new
opportunities presented by eSIM.
THE PRACTICALITIES OF ESIM FOR IOT 2
 Executive Summary
The IoT is revolutionizing businesses, industries, and
society by bringing cellular network connectivity to all
types of devices—from personal health monitors to
smart meters, industrial facilities, agricultural
equipment, shipped goods, and more. Despite the very
real success of IoT and its seemingly endless
opportunities, implementing IoT has not been easy,
scalable, or cost­effective for many companies. A range
of factors play a role, including the proprietary nature
of the SIMs (Subscriber Identity Modules) that are
physically installed in every device. The solution to this
challenge is eSIM, a flexible technology that is carrier
agnostic and simplifies, standardizes, and streamlines
device connectivity so more businesses and
enterprises can realize their IoT ambitions.
Enterprises are certainly aware of eSIM and its value,
but many still need a basic recipe for eSIM
deployments. The purpose of this whitepaper is to
discuss eSIM’s influence on the business proposition
for IoT, mobile industry support for the technology,
promising applications, and common concerns. It
presents a 5­stage process for eSIM deployment that
companies can follow to develop successful solutions
while minimizing risk.

3 WHITEPAPER
eSIM is Changing the
Business Proposition for IoT
IoT is opening new opportunities
for small­to­medium businesses
and enterprises, but it needs to be
scalable and cost­effective for
many companies to pursue it.
Traditional SIMs have been a
barrier. The components are
carrier­specific, requiring different
SIMs for every carrier supporting
an IoT service. They also require
physical replacement any time an
enterprise wants to change carriers
or networks. The carrier lock­in and
hard swap requirements are
ultimately costly to a business
because they prevent companies
from globalizing services or
updating services to align with
changing business needs.
Embedded SIM technology (eSIM) capability to switch networks in
removes these barriers so event of an outage, which prevents
companies can run their IoT downtime. It is also easy to switch
programs with more flexibility and to a new service if the carrier
efficiency. It also makes it easier for sunsets its network.
more companies to enter the IoT
ecosystem.
eSIM achieves this by enabling
global coverage right out of the
box and providing remote over­
the­air (OTA) provisioning
techniques to activate connectivity
or reconfigure services. This
flexibility avoids the cost and
complexity of managing multiple
carriers and multiple SIMs on a
global scale and eliminates the hard
swap requirements. The services
are also very resilient with the
THE PRACTICALITIES OF ESIM FOR IOT 4
 Awareness is Building and
Opportunities are Expanding
Businesses and enterprises are
aware of eSIM’s benefits and taking
advantage of increased
opportunities to use the technology
for IoT­based solutions. The eSIM
ecosystem is also well established
to support eSIM initiatives.
Enterprise readiness and
opportunities: Enterprises, for
example, recognize the role of
eSIM in IoT development. A survey
of 2900 enterprises across most
vertical sectors and regions,
conducted by GSMA Intelligence in
2020, found that awareness is high
among end­user enterprises. Only
2% of respondents were not
familiar with eSIM, and 40% said
eSIM is very important to their
ability to succeed in future IoT
deployments.
Enterprise opportunities for eSIM­
based IoT solutions are expanding.
Adoption has been led by the
automotive sector, which has
adopted eSIM for connected car
applications. Adoption is now
broadening into other markets,
5 WHITEPAPER
finding real and practical
applications for healthcare, logistics
and fleet management, energy and
industrial applications,
manufacturing, supply chain track
and trace solutions, and others.
Carrier support: More and more
carriers are opening their networks to
eSIM­based services. They’ve set the
stage in the consumer smartphone
market, around 200 mobile operators
have already launched commercial
eSIM services. Looking to the future,
90% of operators plan to offer eSIM
service by 2025. Carrier participation
in eSIM for enterprise IoT is newer
but has taken hold and supports
global connectivity. Participation will
continue to grow and expand as it
has for consumer applications.
Many carriers are also operating
low­power wide­area (LPWA)
networks that are engineered for
IoT communications in machine­to­
machine (M2M) contexts that
characterize many business and
enterprise applications. Two
technologies of particular
importance, LTE­M and
Narrowband IoT (NB­IoT), are
designed for infrequent
transmissions of small packets of
data, which is typical in M2M. LTE­
M, a subset of LTE, offers roaming
capability, while NB­IoT currently is
more suitable for non­roaming use
cases. Businesses and enterprises
can take advantage of both
technologies to minimize data
costs. The technologies also
minimize energy consumption to
support battery life of 10 years or
more, which helps extend the
lifetime of the connected product.
Manufacturers, recognizing the
growing market for eSIM­based IoT
solutions, are installing eSIMs
permanently into all types of form
factors. While businesses and
enterprises can still obtain eSIMs in
removable format, the permanent
installation has notable benefits: It
saves space in a device, supports
smaller designs, and helps minimize
energy consumption. It is also
secure because it can’t be removed.
Standardization for interoperability,
security and business confidence
GSMA, which represents the
interests of mobile operators
worldwide, has developed
specifications that ensure
interoperability and security of
eSIM devices. Businesses and
enterprises can use these
technologies with confidence.
eSIM specification: The eSIM
specification has been adopted by
the global industry as a de facto
standard for remote service
provisioning (RSP) of eSIM­
connected devices. The
specification, known as GSMA
Embedded SIM specification
SGP.02, was developed by GSMA
specifically for M2M eSIM
implementations. It makes it possible
to provision and manage eSIMs in
remote devices by pushing a new
profile to the devices over the air
(OTA). It also allows provisioning a
subscription and changing from one
operator to another.
Because the mechanism is
standardized, it ensures eSIM
devices will interoperate on
different networks. Standardization
also helps build economies of scale,
which drives down costs.
Security specification: A GSMA
security specification, used in
conjunction with eSIM, provides a
THE PRACTICALITIES OF ESIM FOR IOT
zero­touch mechanism to onboard a
device easily and quickly with a high
level of security. The specification,
called IoT SIM Applet for Secure
End­to­End Communication (IoT
SAFE), employs the eSIM not only
for network authentication, but also
for device authentication to any
cloud. IoT SAFE is not hackable
because it uses the eSIM as a
hardware secure element, protecting
sensitive assets (keys) inside the
eSIM, not the device. The
embedded security and easy
onboarding are also highly beneficial
because they help companies
streamline provision high volumes of
devices for IoT applications.
6
 Industry Applications for eSIM
eSIM has value for organizations in
many industries. Following are a
few of the many examples:
Healthcare: Organizations across
the healthcare industry have
identified ways to use IoT to
improve patient health and
increase profitability. Given the
sensitivity of health data and often
mission­critical use cases,
implementations must be expertly
designed to meet very stringent
performance requirements. Remote
patient monitoring for clinical trials,
for example, must ensure that the
device never misses a connection
and that the data always routes
back to the organization’s home
network. The device and data
communications must also comply
with local, regional, and industry­
specific regulations for privacy and
security. With eSIM, organizations
can be confident their devices will
be always connected, and the data
will always be secure.
Fleet management: IoT has opened
many valuable applications for fleet
management, enabling businesses
to optimize the use of their
vehicles, streamline maintenance,
7 WHITEPAPER
and improve driver safety. eSIM is a
welcome advancement for these
applications, with many cost
benefits. A flexible approach to
network operators, along with
capability to use connectivity
intermittently, allows organizations
to obtain global coverage at the
lowest price. The technology’s
remote OTA provisioning function
makes it possible to update
dispersed assets in the field—a
potential for substantial cost
savings given the long lifecycle of
fleet vehicles.
Smart energy: eSIM can help
electric and gas utilities implement
data­driven IoT solutions to
improve infrastructure reliability
and efficiency and to better
understand customer usage. eSIM
has much to offer in these
contexts, in particular cellular
coverage that reaches across
geographically broad service areas.
Numerous vendors are supplying
smart meters with off­the­shelf
eSIM­enabled cellular connectivity,
which is broadening supply chain
choices and driving down device
costs. eSIM technology also
provides an insurance policy for
utility providers against lock­in with
a single network operator for the
duration of the device’s lengthy
deployment in the field. With eSIM
reprovisioning capability, utilities
can change operators if it is in their
strategic interests, while also
avoiding the potential cost and
hassles of physical SIM swaps.
Precision agriculture: The
geographic scope of farming and
ranching operations requires wide­
area wireless coverage to enable
many high­value applications for
precision agriculture—such as
tracking and monitoring equipment,
crops, and livestock, and connected
devices used by remote personnel.
Cellular networks provide excellent
and reliable coverage to support
these strategies. The flexibility
eSIM technology offers for
provisioning connectivity, and its
remote servicing and maintenance
features, make it a versatile and
cost­effective option for
agricultural operations.
Manufacturing: eSIM technology
can play an important role in the
optimization of many global
manufacturing processes. Within a
manufacturing facility, eSIMs bring
cellular connectivity to machinery
and personnel, regardless of
location, to support applications
that improve performance, quality,
cost, and resource management.
eSIM’s flexible and updatable
network access technology,
combined with its capability to
ensure network redundancy,
ensure manufacturers will have a
constant feed of data from the
factory floor to the operations hub.
Manufacturers are also deploying
eSIM in products they produce so
they can collect performance and
quality data, warranty, and other
information from goods that are in
the market, regardless of location.
Exploring Typical Concerns
While many companies recognize
the value of eSIM, they often
express concerns about adopting
the technology. Typical concerns
are about costs, dependability,
carrier participation and coverage,
and implementation.
Costs: Upfront costs for eSIMs are
slightly higher than traditional SIMs
because the increased functionality
means a slightly more complex
build. The increased cost is only
marginally higher, however, and
easily recovered. The benefit
comes from lifetime cost savings
and reduced risk compared to
traditional SIMs, which are locked
in with a single carrier and put
enterprises at risk of future
hardware replacement costs and
potential revenue losses if they
must interrupt services to
physically update devices due to a
change in the carrier’s service or a
Industrial site monitoring and item
tracking: Organizations that
operate large, distributed facilities
can use connected devices to
monitor their sites and the location
of mobile equipment. eSIM
technology, deployed in the facility
and/or machinery, can continuously
collect and share data to reveal
details about the site or equipment
conditions, potentially preventing
issues like machinery malfunctions,
equipment overload, or hazardous
situations. The technology can be
deployed in industrial­grade
devices that can withstand
vibrations, extreme temperatures,
and other rugged conditions.
network shutdown. Because eSIMs
eliminate these potential future
costs for devices that can operate
in the field for many years, eSIMs
are a better long­term investment.
Dependability: Companies also
want assurance the devices they
adopt will operate as promised in
an eSIM architecture. To alleviate
this concern, solutions are available
to quickly validate devices before
deployment. The validation ensures
an eSIM complies with eSIM
remote service provisioning
standards to allow OTA updates
and changes.
Carrier participation and coverage:
Because eSiM for IoT is relatively
new, it will take time for all carriers
to participate and allow access to
their native carrier profiles. This
should not be a barrier. KORE, for
example, has a portfolio of global
THE PRACTICALITIES OF ESIM FOR IOT
Shipping and logistics: Shipping
organizations must know the exact
location and condition of goods in
real­time during transit to
accelerate delivery, optimize
efficiencies, and protect product
quality and the safety of personnel.
eSIM technology is a practical
means of providing connectivity for
these applications because it can
provide coverage anywhere in the
world in accordance with relevant
regulatory and security policies.
Continuous and reliable
connectivity can also mitigate risk
when shipping high­value products
across long distances via multiple
transport methods or when goods
might be exposed to adverse
environmental conditions.
carrier profiles for eSIM in its
system to enable deployments
worldwide. It continues to add
carriers as more come into the
ecosystem.
Implementation and management:
Carriers are often concerned that
eSIM will be difficult to implement
and manage. A good eSIM solution,
however, is a hassle­free
experience for businesses and
enterprises, allowing installation
easily out­of­the­box regardless of
location. A company will not need
to form partnerships with individual
carriers, and all provisioning,
orchestration, and security can be
handled via a single screen on a
cloud management platform (CMP).
KORE ConnectivityPro™ is an
example of a platform that can
provide all these features.
8
 5 Stages to eSIM Deployment
The best way to pursue an eSIM
deployment is to break the process
into a series of stages. A structured
process will help companies make
the most informed decisions, obtain
the best services, optimize costs,
and minimize risks to increase the
chances of a successful
deployment. Companies that would
benefit from external expertise
during this process can bring in a
trusted advisor to help with some
or all steps.
9 WHITEPAPER
Stage 1: Defining an Stage 2: Evaluating
eSIM strategy eSIM technology
The first step of any strategic options
technology decision is
The next step after defining the
understanding exactly what the
strategy is to select the type of
project is meant to achieve. To
eSIM device that meets the
begin, define the business objective,
intended product’s needs. The
the IoT solution, the function it will
most important considerations
provide, and where it will be
include the form factor,
deployed. These decisions will guide
certification, and the end­to­end
eSIM technology selection as well
context it will be used in.
as deployment and management
throughout the product’s life cycle.
Form factor: eSIMs come in two
form factors and the optimal
selection is dependent on factors
such as the IoT device size and the
intended application. Industrial­
grade IoT applications typically
require permanent installation and
will use eSIMs that have a
machine­to­machine form factor
(MFF2). These eSIMs are designed
to be soldered directly onto the
circuit board. Commercial­grade
applications typically use eSIMs
that are removable. These are
offered in a plastic triple­cut form
factor, offering the eSIM in three
standard sizes that can be applied,
as appropriate, depending on the
size of the product.
The environmental conditions the
product will be used in will also
influence the form factor. If the
product must be ruggedized or
sealed air­tight to tolerate
vibrations or extreme
environmental conditions, it will
need an industrial­grade eSIM. In
many cases, however, a
commercial­grade form factor is
sufficient.
Certification: All devices that
connect to cellular networks
require certification to access the
network, and eSIM is no exception.
Typically, the eSiM must meet
requirements set by the global
mobile industry, the region or
country in which services are used,
as well as the carrier network
providing access. An eSIM
solutions provider can take care of
this. Find out what tools and
services they offer to help obtain
certifications.
End­to­end context: An eSIM
functions as part of an overall IoT
communications architecture, and
effective deployment must consider
the end­to­end context it will be used
in. Look for the following capabilities
when selecting an eSIM solution:
• A single SKU eSIM that is globally
connected
• A carrier­agnostic platform that
minimizes roaming costs
• Connectivity that has the resilience
to overcome network sunsets
• Standards­compliant RSP
technology that allows remote,
automatic connectivity to the
optimal network
• Device monitoring to ensure the
solution is always connected and
operating properly
• Tools teams can use to manage
connectivity profiles and provision
data and devices
• Security based on industry
standards
• An architecture that can scale
along with the business
Stage 3: Defining
connectivity
requirements
The access technology adopted for
a product is directly influenced by
the product’s specific use case. The
following questions will help guide
the access technology decision:
• Which geographies does the IoT
application need coverage in now
and, potentially, in the future?
• Which carriers offer the coverage
most suited to the use case?
• What types of rate plans are
available and which ones will
best serve the business model?
• Will the IoT application need
roaming services, and if so, how
should these be enabled to provide
the best coverage at the best price?
• Does the solution have special
requirements for network
redundancy, and if so, how can
this be implemented?
• Are there any regulations that will
impact connectivity options in
the target geographies?
THE PRACTICALITIES OF ESIM FOR IOT
Last, but not least, consider whether
it is practical to obtain connectivity
services independently or bring in a
partner to help with this.
Stage 4: Deploying an
eSIM solution
To get a solution successfully
deployed in the market, companies
will need to consider manufacturing
and distribution logistics. A
manufacturing partner can be used
to select, procure, and integrate the
hardware to the product’s
specifications. A distribution partner
can help with packaging, inventory
management, shipping, and delivery.
Costs can vary among partners, so
companies should conduct due
diligence to make sure their
decisions align with their business
objectives and ensure a ROI.
Stage 5: Servicing and
managing an eSIM
solution
Good IoT solutions work well from
the outset and allow a company to
service and manage devices with
ease. Make sure the out­of­box
experience will be easy to set up
and activate. Evaluate cloud
management platform (CMP)
options and make sure the solution
provides a unified graphical user
interface (GUI) for a “single pane of
glass” display. This single dashboard
should allow zero­touch (remote)
capability for provisioning and
reprovisioning of devices and data
plans and for managing eSIM
profiles. The dashboard should also
use security insights from
continuous monitoring to recognize
potential anomalies and issue alerts.
A good CMP platform should also
simplify payment for services with a
single monthly bill that covers all
connected devices and services.
10
 A KORE use case for simplifying
connectivity across markets with a
single, global eSIM SKU
KORE provides a full suite of
technology options that work
together in an end­to­end
architecture to enable eSIM­based
IoT services. Companies can use
the solutions to streamline the
implementation of eSIM­based
products and manage their
services. KORE professional
services, available from its offices
around the world, are on hand to
help customers plan and
implement the technologies. KORE
also has regulatory experts in key
vertical industries who will ensure
services are compliant wherever
they are offered.
Connecting to an operator
network: KORE global connectivity
is available out­of­the box on a
single SKU that is carrier agnostic.
The single SKU connects to the
best carrier partners for any given
location and offers capability to
download a local profile if needed.
The flexibility eliminates need for
different SIM cards for different
carriers or regions and allows
companies to configure their
services and rates from a variety of
options. The profile can be
changed whenever necessary.
Architecture: KORE offers a
complete end­to­end architecture
for eSIM IoT. The architecture has
three components: the core
network, the architecture for
remote provisioning, and the back­
end system.
11 WHITEPAPER
The core network controls access
to carrier networks. Some carriers
also serve as roaming sponsors,
allowing seamless connectivity
when needed via their roaming
partners in a country or service
area. For added resiliency in the
event of an unexpected service
outage, KORE uses multiple
roaming sponsors with overlapping
service areas to make sure a device
will always have a network
connection, wherever it may be.
The KORE architecture for eSIM
remote service provisioning is
based on the GSMA Embedded
SIM Specification SGP.02. It
ensures that a company will be able
to activate subscriptions, manage
provisioning remotely OTA, and
virtually swap the eSIM identity as
needed to change from one carrier
profile to another.
The KORE One engine is the back­
end system that orchestrates
services and activates subscriptions
on the KORE eSIM Profile or a local
MNO native profile. It links to
ConnectivityPro.
Applications and tools for end
users: The KORE platform provides
easy­to­use tools for end users:
ConnectivityPro and a device
validation solution.
ConnectivityPro is a single GUI
companies can use to access the
KORE One orchestration engine for
device and data provisioning, eSIM
profile management, and end­to­
end security monitoring. The
security tool issues immediate
alerts if the system notices unusual
behavior, such as a device that
stops transmitting data (an
indicator of possible malfunction)
or changes in device location or
data consumption (which might
indicate theft of a product).
The eSIM device validation tool
provides all the technical testing
needed to make sure an eSIM
functions properly and will allow
remote provisioning on different
networks. The tests avoid the need
to send devices to carriers for
validation on their networks and
can be completed in minutes,
saving time and costs. It can also
be used to validate new firmware
that might be added to a device
once it is in the field. Companies
can adopt the validation tool as a
self­service solution or use KORE
network and device certification
specialists to perform the work.
Conclusion:
Good Planning and
Preparation Will Help
You Join the IoT
Ecosystem
eSIM has dramatically streamlined access to cellular
networks, changing the business proposition for IoT.
The technology breaks down implementation barriers
posed by traditional SIMs that prevented many
companies from pursuing IoT initiatives. It introduces a
modern approach to IoT connectivity that features
hassle­free implementation out of the box, instant
global connectivity, remote OTA provisioning and
reprovisioning capabilities, service resiliency, and
reduced lifetime costs. The benefits apply to
organizations across industries—from healthcare to
energy, agriculture, and more. To get started on a
deployment, KORE recommends following a 5­step
planning process that includes defining a strategy;
evaluating eSIM options; defining connectivity
requirements; deployment; and servicing and
managing the deployed solution. The approach will
position any company to enter the IoT ecosystem
confidently with a successful solution based on a
sound technology strategy.

THE PRACTICALITIES OF ESIM FOR IOT 12

 KORE Case Studies

Netherlands Energy Provider uses eSIM for a Future­Proof

Smart Meter Deployment
Stedin, a grid operator in the Netherlands, needed to deploy more than a million smart meters to replace
legacy devices that were operating on a 2G network slated for sunsetting in 2025. It needed a solution
that would serve the life span of the new meters—up to 20 years—and allow the company to change
carriers in the future. Given the scale of its deployment, it also needed a solution that would avoid the
high costs of on­site SIM replacements during this lengthy time horizon.
Stedin adopted a carrier­agnostic eSIM solution from KORE that complies with smart metering
standards and telecommunications regulations in the country. The utility has provisioned the new smart
meters to connect to its existing 2G services and will use the eSIM remote provisioning capability to
migrate all devices to LTE­M before the 2G network sunsets. More than 1.7 million smart meters have
been deployed and another 0.5 million are slated for deployment. The company is controlling all devices
and services with KORE’s ConnectivityPro cloud management platform.

Wearable Emergency Health Alerts use eSIM for Global

Mobile Coverage
Global Wireless Health, an international life solution company, needed a simplified IoT solution for
Vidapoint™, a wearable personal monitoring system it offers to help the elderly and vulnerable connect
to emergency services and family in the event of a crisis. The company required a solution that would
provide cellular coverage around the world, could be activated easily out­of­the­box and would connect
to local emergency service agencies without fail.
The organization adopted KORE as a single­source vendor for its global eSIM solution. It also took
advantage of KORE managed services to plan and architect its solution. Global Wireless Health has now
deployed the solution in Brazil, Thailand, Singapore, and Mauritius. Because of eSIM’s versatility and
KORE’s carrier relationships, Global Wireless Health did not have to scout for connectivity in each country.
The devices automatically connect to the strongest available local network and reprovision services for end
users in the event of future network changes.

13 WHITEPAPER
GSMA Intelligence: Key business
factors to watch for
IoT is a promising area for eSIM.
Today, eSIM adoption in the IoT
market is still low relative to its
long­term potential – this means
there is an opportunity for
operators and other IoT providers
to fulfil unmet enterprise demand.
It also means that tracking and
assessing the evolution of eSIM in
IoT is now more important than
ever before.
Key business factors to watch for
• Ecosystem reconfiguration takes
time. A period of reconfiguration
is needed as companies gain
eSIM experience and adjust to
new manufacturing and logistical
processes. On one side there is a
technology (traditional SIM) that
has played a pivotal role in the
rapid rise of mobile services over
the last three decades. On the
other side there is an ongoing
transition to a new technology
(eSIM) that brings new
opportunities and benefits – but
also changes and challenges – for
mobile ecosystem players and
enterprises. As eSIM deployments
in IoT grow, companies that have
yet to launch eSIM should start
its implementation as early as
possible.
• A move to a holistic eSIM
approach. GSMA Intelligence’s
research shows that enterprises
across most vertical sectors
expect eSIM to deliver more than
just its traditional capabilities,
taking a key role in ensuring end­
to­end security (see chart).
Device­to­cloud security is seen
as the most important eSIM
benefit for IoT deployments, to
ensure data is secured
throughout the entire path, from
where it is generated to where it
is processed. When selling eSIM­
enabled solutions to enterprise
customers, a holistic approach
that captures all the eSIM
benefits will increasingly be key.
• IoT complexity is security’s
biggest enemy. eSIM solves two
main IoT security implementation
challenges. It reduces the
ongoing security management
complexities facing enterprises,
while simplifying the decision as
to how to balance performance,
security and cost in an IoT
solution. As eSIM reuses SIM
infrastructure, leverages IoT SAFE
and follows an industry standard
for interoperability, it reduces the
subsequent burden on
developers to keep writing code
and individually negotiating
security mechanisms with each
supplier. The operational burden
of credentials management will
be greater than what enterprises
are used to. eSIM will help, but
enterprises need to evolve their
current security mindset away
from an IT perspective for eSIM
to become the credentials
management solution for IoT.
• Shift from local to global IoT
propositions. Compared with
traditional removable SIMs, eSIM
increases the range and volume
of devices that can be connected;
THE PRACTICALITIES OF ESIM FOR IOT
the ability to remotely update
large volumes of devices quickly
and simultaneously is a key
benefit that enterprises expect
(and need) from eSIM. This comes
as no surprise, given that the
average IoT deployment size
continues to grow. Very small
deployments (fewer than 50
devices) now constitute less than
20% of total deployments,
compared to a third in 2018. As
multi­country connectivity is built
in during the manufacturing
process and then delivered
locally, GSMA Intelligence
expects more IoT companies to
enhance their global propositions.
• eSIM as a strategy. From a
technology perspective, the
growing adoption of GSMA’s
global standards and
specifications (as opposed to
proprietary solutions) will help
tackle some of the challenges
around integration and
interoperability of different IoT
solutions and platforms. Beyond
the technology and demand
factors, future eSIM deployments
at scale also depend on IoT
companies having a clear eSIM
strategy alongside their main IoT
proposition. Many major
companies in the wider IoT
ecosystem claim that eSIM is
crucial for IoT developments, but
few have a clear eSIM strategy.
Embracing eSIM at scale
undoubtedly takes time, but it’s a
prerequisite to fully leverage the
potential of eSIM for IoT.
14
 Importance of eSIM benefits to achieve success in IoT deployments – Enterprises speak

Tamper proof because it

Classic eSIM benefits

is embedded to device 58%

Easy to switch operators 58%

Industry recognised standards in

using the SIM as the most secure 59%
place to store credenals

Remotely update large

Addional eSIM benefits

volumes of devices quickly/ 62%
simultaneously
Simultaneously and remotely
patch deployed devices in the 63%
event of security vulnerabilies
Industry recognised standards
in using the SIM as the most 64%
secure place to store credenals

Device-to-cloud security 67%

Source: GSMA Intelligence Enterprises in Focus Research (Global IoT Enterprise survey).
Question: How important is each of the following eSIM benefits to the success of your future IoT deployments?
N=2,400 (those who consider eSIM as important)

15 WHITEPAPER
KORE is a pioneer, leader, and trusted advisor delivering
mission­critical IoT solutions and services. We empower
organizations of all sizes to improve operational and business
results by simplifying the complexity of IoT. Our deep IoT
knowledge and experience, global reach, purpose­built
solutions, and deployment agility accelerate and materially
impact our customers’ business outcomes.
Find out more at www.korewireless.com.
Disclaimer: The views and opinions expressed in this whitepaper are those of the authors and do not
necessarily reflect the official policy or position of the GSMA or its subsidiaries.
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THE PRACTICALITIES OF ESIM FOR IOT 16