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Navigating Permanent Roaming for IoT: Challenges and Solutions

  • The growing IoT ecosystem has brought forth its own set of challenges. One such challenge is permanent roaming.
  • 虽然许多国家允许永久漫游无ut significant constraints, some big countries have implemented limitations on this practice.
  • There are multiple ways to circumvent the problem of permanent roaming. These includeeSIM, Multi-IMSI, aggregator platforms, and dynamic network selection algorithms.

The Internet of Things (IoT) has revolutionized the way we interact with the world around us. From smart homes to industrial automation,IoTdevices are playing a pivotal role in enhancing efficiency and convenience. However, the growing IoT ecosystem has brought forth its own set of challenges. One such challenge is permanent roaming, a phenomenon that has gained significance due to the global nature ofIoTdeployments. In this blog, we will delve into the concept of permanent roaming for IoT, discuss the challenges it poses, and explore potential solutions.

Understanding permanent roaming for IoT

永久漫游the context of IoT refers to the practice of utilizingcellularconnectivity across different geographical locations on a consistent basis. Unlike traditional mobile phones, which might roam temporarily when users travel, IoT devices often need to maintain connectivity across various regions for extended periods. This is a fundamental requirement for IoT devices used in logistics, remote monitoring,agricultureand other activities.

虽然许多国家允许永久漫游无ut significant constraints, some big countries have implemented limitations on this practice. The map below shows countries where permanent roaming is banned and those where local carriers have imposed restrictions.Major countries where permanent roaming is restricted

Countries that prohibit permanent roaming includeIndia, China, Brazil, Saudi Arabia, Egypt, Nigeria, Turkiye (formerly Turkey), UAE and Singapore. Besides, mobile operators in the US, Canada and Australia have imposed restrictions on permanent roaming within theirnetworks,有效地实施禁止这种做法在these countries. Remarkably, these 12 countries collectively cover more than 50% of the world’s population and account for well over three-quarters of the IoT market.

Challenges posed byrestrictions onpermanent roaming

IoT devices are typically deployed on a global scale, leading to a complex scenario where these devices are connected to multiple mobile network operators (MNOs) across different countries. Imagine an electric car company that markets its vehicles across various regions. In countries where permanent roaming is not allowed, the company must procure local connectivity. This situation presents a host of challenges that ripple through the operational landscape:

  • Complex network management:Handling connections to multiple networks becomes really complex. Each network might have different prices, coverage areas and technical needs. The process of harmonizing such distinct facets is likely to be intricate and time-consuming.
  • Dealing with many partners:The company needs to work with different network partners. This means making deals, managing money and ensuring good service quality across networks. Besides, multiple networks means multiple bills and contracts. All of these tasks together can become very complicated and hard to manage as this activity is not core to the business.
  • Higher costs:Because of the rules against permanent roaming, the company has to pay more money to set up connections in each country. This extra cost can make things difficult and might affect how much the company can grow.
  • Less flexibility:Without the ability to use permanent roaming, the devices might not work as well when they move between countries. This can be a problem for customers who expect a consistent experience.
  • More planning needed:Since the company can’t rely on the same connection everywhere, it needs to plan ahead. This can slow things down and make expansion harder. There could be issues related to data sovereignty and compliance that may require additional planning.

Solutionsforpermanent roaming

There are multiple ways to circumvent the problems associated with permanent roaming. However, it is critical to select a managed service provider that has tie-ups with local MNOs/MVNOs. Alternatively, direct MNO relationships can be managed using aggregator connectivity management platforms.

eSIM (embedded SIM):eSIMtechnology is a game changer in the IoT landscape. It enables devices to have programmable SIM cards that can be remotely provisioned over the air. With eSIM, IoT devices can switch between different MNOs without requiring a physical SIM card replacement, thus simplifying the management of connectivity. UsingeSIM, it is possible to switch between a local profile and multiple roaming profiles every 90 days to avoid permanent roaming. Many managed service providers have this workaround to avoid permanent roaming. The new IoT eSIM specifications will further simplify the provisioning and orchestration of connectivity.

Multi-IMSI (International Mobile Subscriber Identity):Multi-IMSI解决方案允许单个物理SIM card to have multiple IMSIs from different MNOs. This enables the device to seamlessly switch between networks while maintaining a single SIM card. By intelligently selecting the optimal IMSI based on factors like network quality and cost, Multi-IMSI solutions optimize connectivity and reduce operational complexities. However, the managed service provider needs to have a local presence or tie-ups.

Aggregator platforms:Aggregator connectivity management platforms (CMPs) act as intermediaries between IoT device owners and various MNOs. These platforms offer a unified interface for managing connectivity, provisioning,billing, and reporting across multiple networks. By consolidating these tasks, aggregator platforms simplify the management of permanent roaming for IoT devices. A new set of aggregator CMPs like IOTM and ConnectedYou is targeting enterprises instead of carriers to solve the problem of managing multiple networks.

Some of the aggregator platforms offer Dynamic Network Selection Algorithms. Smart algorithms can be implemented in IoT devices to dynamically select the most suitable network based on parameters such as signal strength, latency and cost.

Conclusion

With the IoT landscape continuing to expand globally, the challenges associated with permanent roaming are becoming more pronounced. However, with the advent of innovative solutions such aseSIM, Multi-IMSI, aggregator platforms, and dynamic network selection algorithms, these challenges can be effectively mitigated. These solutions not only simplify the management of connectivity but also enhance cost-effectiveness and operational efficiency for IoT deployments. The key is to find the right managed services partner, which has a platform that enables easy management of connectivity.

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Oasis Smart-SIM’s CloudSIM™ to Catalyze Growing Need for On-demand Connectivity

  • CloudSIM™ is a remote hardware SIM stored in a dedicated, secure and GSMA-certified environment.
  • CloudSIM™ provides on-demand cellular connectivity more securely and more affordably than ever before.

Oasis Smart-SIM and TATA Communications revealed their latest innovation CloudSIM™ atMWC 2023in Barcelona, Spain. CloudSIM™ is a remote hardware SIM that provides on-demand cellular connectivity more securely and more affordably than ever before.

CloudSIM™is stored in a dedicated, secure and GSMA-certified environment and is facilitated through TATA Communications’ MOVE™ platform. By delivering device integrity and provisioning the Cloud SIM™ technology on the cloud, Tata Communications and Oasis Smart-SIM’s innovation helps reduce costs and simplify designs. This changes the traditional way of delivering on-demand connectivity, which typically requires costly and complex additional SIMs,eSIMsoriSIMson the hardware platform. It will provide SanCloud devices the ability to remotely control and monitor the operational performance of industrial equipment and plants across the manufacturing chain. It will simplify deployment across fragmented supply chains and benefit enterprises globally.

LISTEN: CloudSIM™ to Catalyze Growing Need for On-demand Connectivity

Key Benefits of CloudSIM™

CloudSIM™ is primarily aimed at use cases that do not require permanent connectivity. Limiting the number of profiles required for fleet operations and providing on-demand connectivity reduces the overall cost of connectivity. The three key benefits of CloudSIM™ are:

  • Security: SIMs are digitalized, stored in a secure server and only made available on demand for a limited period.
  • Simplicity: The CloudSIM™ architecture allows for smooth deployment and improved time to market.
  • Scalability: It enables unlimited connectivity when and where it is needed.

WATCH: Oasis Smart-SIM Demonstrates new CloudSIM™ Solution at MWC

Counterpoint’s Take

As the number of cellular-connected devices continues to grow, they bring a multitude of new requirements, use cases and challenges. Therefore, it becomes important for the industry to keep updating its offerings to meet the ever-evolving needs. We believe CloudSIM™, launched by Oasis Smart-SIM and TATA Communications, is an innovative solution for on-demand cellular connectivity, which optimizes costs and complexity, and improves security.

There are multiple use cases where permanent cellular connectivity is not required, such as device maintenance or OS upgrades intelematics, low data transfer in NB-IoT-connected smart meters and visited private networks. For these use cases, permanent connectivity only adds unwanted costs to the OEM while also requiring OEMs to keep eSIM profiles in their inventory. Since the CloudSIM™ can provide connectivity as and when required and then deactivate itself on demand, data consumption and the number of profiles required are optimized.

Counterpoint Research Vice President Neil Shah visited the TATA Communications booth duringMWC 2023to see a demo of the solution in action. Oasis Smart-SIM Chief Marketing Officer Jean-Christophe Tisseuil explained some of the key use cases of the solution.

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Analyst Contacts

Shubham Sethi

Ankit Malhotra

Qualcomm, UNISOC, ASR Lead Cellular IoT Module Chipset Market in Q1 2022

  • Qualcomm, UNISOC, ASR and MediaTek were the top four cellular IoT chipset vendors in Q1 2022.
  • 4G (Cat 1 and Cat 1 bis) contributed to almost one-third of the cellular IoT module chipset shipments.
  • Smart meters, POS, industrial, automotive and telematics were the top five applications in the quarter.

New Delhi,San Diego, Buenos Aires, London, Hong Kong, Beijing, Seoul – July 7, 2022

Global cellular IoT module chipset shipments grew 35% YoY in Q1 2022, according to the latest research from Counterpoint’sGlobal Cellular IoT Module and Chipset Tracker by Application. China was the key region for cellular IoT module chipset consumption during the quarter, with China, North America and Western Europe accounting for over 75% of the volume. PC, router/CPE and industrial were the top three applications for 5G.

Commenting on the market dynamics,Research AnalystAnish Khajuriasaid, “Qualcomm, UNISOC and ASR held the top three positions in the global cellular IoT module chipset market in Q1 2022, accounting for nearly 75% of the total shipments.UNISOC,QualcommandASRwere top chipset players in China in terms of shipments. For the rest of the world,Qualcommled, followed byUNISOCandSequans. 4G (Cat 1 and Cat 1 bis) grew 79% YoY in this quarter.”

Qualcommled with a 42% share and 30% YoY growth across nine out of the ten key regions globally. However, competition from local players in China, such as UNISOC and ASR, in key fast-growing segments like LTE Cat-1/Cat-1 bis and NB-IoT limited Qualcomm’s growth opportunities in the world’s largest IoT market, China. However, Qualcomm has been broadening its IoT chipset portfolio, targeting premium 4G and 5G solutions for verticals such as retail,automotive, industrial robotics and smart cities. It is also collaborating with several industry application and technology providers, including Microsoft, ZTE, BMW and Bosch, to focus on high-value artificial intelligence and 5G IoT capabilities, also termed as the5G AIoTsegment.

UNISOC,the second-largest cellular IoT chipset player globally with a 26% share in shipments, has been strong across 4G (Cat 1 and Cat 1 bis) and NB-IoT technologies. Its cellular IoT chipset shipments have continued to grow for nearly last five quarters, filling the gap which HiSilicon left in the market. Moreover, it is making steady improvements in advanced cellular technologies such as 4G Cat4+ and 5G. It has also succeeded in expanding its customer base, addingQuectel, Fibocom, China Mobile and other international module players. This helped it to capture more than one-fourth of shipments in Q1 2022. UNISOC is focused on low-end applications like smart metering,POSand industrial with stronger demand for its Cat1 bis 8910DM chipset.

ASRMicroelectronicsmaintained its third rank in the cellular IoT chipset market in Q1 2022 due to strong performance in the high-volume 4G Cat 1 and 4G Cat 4 module segments. China continues to be the key market for ASR. The company is yet to launchNB-IoTand 5G solutions and thus will have to work on its long-term capabilities and strategy to maintain this high growth which could continue through 2025. ASR has increased its production capacity this year to meet demand. Local partnerships with several module players in 4G Cat 1 and Cat 4 technology, like Quectel, SIMCom, Neoway, Longsung and Rinlink, are helping drive the scale.

Commenting on the competitive dynamics,Vice President ResearchNeil Shahsaid, “The cellular modem chipset competition is heating up in the IoT module space with a growing number of players entering the higher-volume LPWA (LTE-M and NB-IoT) and lower-category 4G LTE (Cat 1 and Cat 1 bis) segments as incumbent players such as Qualcomm and MediaTek focus on the higher-value and more integrated 4G LTE and 5G segments. The move from a two-chip (discrete MCU + cellular modem) to an integrated SoC solution is happening as we enter the 5G era. Further, the addition of AI/ML capabilities in future advanced cellular IoT applications is also catalyzing this trend. However, the low-power and less advanced applications will continue to prevail into the next decade and we could see some adoption of SoC-based integrated solutions. But the discrete solutions will prevail, driving sizeable opportunities for the likes of UNISOC, ASR, Sequans, Sony Semi, Eigencomm, Xinyi and Nordic Semi.”

Other Players

MediaTektook the fourth position in this market. However, it is not much focused on the cellular IoT market compared to the smartphone chipset market. This is one of the key reasons for MediaTek having a 5% shipment share in this quarter. The company is also focusing on 5G enhancement and recently launched Kompanio 900T, a new 5G platform for tablets, notebooks and other IoT devices. The MediaTek T750 chipset launched earlier is growing strong inFWA and CPEdevices.

Global Cellular IoT Module Chipset Shipments Share by Vendor, Q1 2022

Source: Counterpoint Global Cellular IoT Module and Chipset Tracker by Region, Q1 2022
Source: Counterpoint Global Cellular IoT Module and Chipset Tracker by Region, Q1 2022

Eigencommregistered the highest growth of 869% YoY during Q1 2022, thanks to a strong partnership with Quectel and Fibocom for NB-IoT modules. However, the brand needs to diversify in terms of supporting cellular technologies beyond NB-IoT in its portfolio as well as beyond China.

Xinyiwas the second fastest growing chipset player in the market during the quarter with 230% YoY growth. Similar to Eigencomm, the company is currently focusing on the NB-IoT chipset and China region. For the near-to-mid-term, Xinyi needs to leverage its strong partnership with major module vendors such as Quectel, China Mobile, Fibocom, SIMCom, Cheerzing, Longsung, MeiG and Ai-Link and expand into newer cellular technologies to maintain the growth and market share.

Sequanswas also in a growth mode in Q1 2022 with a robust 4G, LPWA and 5G chipset portfolio and rising demand in key markets such as smart meters, healthcare and asset tracking. Sequans is the world’s second chipset vendor after UNISOC to commercialize the 4G Cat-1 bis chipset to increase its share and design wins in the growing Cat 1 bis-based IoT applications.

Sony Semicon(Altair) also saw growth this quarter with solid cooperation with Sierra Wireless and Wistron NeWeb focusing on the markets for smart meters, asset trackers and smart cities. Sony is only focusing on LPWA technology with low-power and high-security features on chipsets.

For detailed research, refer to the following reports available for subscribing clients and also for individual subscriptions:

Counterpoint tracks and forecasts on a quarterly basis 1,450+ IoT module SKUs’ shipments, revenues and ASP performance across 80+ IoT module vendors, 12+ chipset players, 18+ IoT applications and 10 major geographies.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Anish Khajuria

Neil Shah

Counterpoint Research

press@www.arena-ruc.com

Related Reports:

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