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‘Off-the-Shelf’ eSIM Provisioning Software Gaining Momentum

eSIMhas been a revolutionary technology driving the digital transformation of acquiring, accessing and consuming connectivity. OEMs are offering eSIM capability at the device level, while eSIM management solution vendors are offering software and services to mobile operators to connect these eSIM-capable devices to eSIMplatformssecurely.

The benefits of eSIMtechnologylie in enabling secure and seamless connectivity from chip to cloud, leading to an array of new business models for a broad range of stakeholders. This includes transforming mobile operators, making connected enterprises “fully digital”, thereby reducing overheads, customer acquisition costs and complexities, boosting customer experience, and driving newer business models connecting people and things at scale.

Demand for eSIM management solutions growing across different stakeholders

eSIMadoption is growing swiftly across different device categories and stakeholders. Mobile operators, enterprises, service providers and even platform players are sourcing innovativeeSIMsolutions to go digital, expand their service offering, maintain redundancy, plan hybrid deployments to comply with local regulations, or address specific subscriber or device segments. For example, players such as Uber are climbing on the eSIM bandwagon to drive newer business models and remove customer pain points by offering uninterrupted connectivity. Privatenetworksare adopting eSIM to offer dedicated connectivity to their employees and remotely manage the connected IoT assets within the enterprise premises.

Different flavors of eSIM management solutions

The incumbent SIM vendors have been deliveringeSIMmanagement solutions in the form of ‘eSIM-Management-as-a-Service’ as an extension of their existing SIM business model, with the storage and processing of the subscriber data usually managed by the vendors at their own sites or now in collaboration with third-party cloud platforms such asAzure,AWSandGoogle Cloud. However, in such traditional deployments, the customers, especially other Service and Solution Providers have very limited commercial and technical control over the eSIM-based subscription management and customer data.

While this has been the established method of eSIM management solution delivery during the early years, which saw very limited eSIM usage, the competitive, geopolitical and regulatorylandscapeis changing. As eSIM technology has matured with a clear path ahead to replace the SIM card, operators as well as service and solution providers are increasingly either considering developing their own eSIM managementsoftwareor licensing it “off the shelf” and building a service on top of it.

Developing software and service “in-house” demands significant resources and domain knowledge, from software to standards to security. This makes the exercise incrementally expensive amid changing technologies and regulations. Therefore, using an off-the-shelfeSIMmanagement software is emerging as a popular solution, offering the best of both worlds, i.e. in-house and as-a-service eSIM management solutions.

achelos GmbH, an important player in the eSIM value chain, is positioned to satisfy the abovementioned needs. The company offers a suite of off-the-shelf GSMA-compliant eSIM RSP software solutions with bespoke features and extensions that perfectly align with the different requirements of a broad range of players, whether MNO, privatenetworkoperator, service provider or system integrator. They fill a gap in the booming eSIM RSP market, helping democratize the technology by offeringeSIMsolutions to potential stakeholders looking for eSIM provisioning capabilities integrated directly into their existing platforms or infrastructure at the software level rather than the traditional as-a-service solution.

Source: Counterpoint Research Global eSIM Management Deployment Tracker

In our discussions with multipleoperatorsand stakeholders, the key needs and challenges mentioned are related to having more control, independence over costs, technology, integration, and data to manage the number of connected devices and connectivity on their networks. This is where off-the-shelfeSIMmanagement software solutions are looking to help eliminate the significant cost, risks, resource requirements and compliance requirements. However, with the growing trend of sourcing multiple eSIM management and orchestration solutions, we believe the off-the-shelf software is a nice complement to the traditional as-a-service eSIM solutions, allowing these key stakeholders to strike the right balance between control and flexibility.

Firms such as achelos started as niche players, with a highly focussed “software-only” approach offering flexible, customizable off-the-shelf GSMA SAS-SM-complianteSIMremote SIM provisioning and orchestration software solutions. These complement or offer an alternative to traditional as-a-service solutions by promising proof points across the following key criteria:

Reliable: Redundancy, up-time, backup, recovery, security, resilience, etc.
Scalable: With growing traffic across locations, device types, features, etc.
Compliant: GSMA standards, specs, interoperability, etc.
Comprehensive: Support different implementations – SM-DP, DP+, DS, etc.
Efficient: Costs, resources, implementation, time-to-market, etc.
Seamless: Architecture, orchestration, openness, cloud, BSS/OSS integrations
Customizable: Features, services, deployments, UI, analytics to help differentiate

Furthermore, having access to an end-to-end suite ofeSIMRSP and orchestration software and capabilities helps potential stakeholders co-develop distinctive features and services on top of the standards efficiently, with full control over security, scalability, and costs.

The key to success with this approach is in having a software partner which embraces open, lightweight, and advanced tools, frameworks and processes. This makes it seamless for the stakeholder’s IT team to co-create unique solutions built on industry standard-compliant and interoperable foundations.

Wrapping up

As the eSIM adoption rises across key stakeholders beyond mobile operators, there are significant opportunities for the vendors providing eSIM solutions in different forms. Different stakeholders have different needs, influenced by their digital transformation journeys, regulations, and need for redundancy or control over the solution and services attached to it.

As a result, we are seeing growing need for off-the-shelf eSIM solutions where some stakeholders want greater control, commercial independence, and sovereignty of the platform alongside the traditional ‘eSIM-Management-as-a-Service’ solutions. Players such as achelos are well positioned to complement and expand the eSIM solution provider ecosystem for the different key stakeholders in their eSIM transformation journey.

Navigating Permanent Roaming for IoT: Challenges and Solutions

日益增长的物联网生态系统带来了噢n set of challenges. One such challenge is permanent roaming.
While many countries allow permanent roaming without 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

Permanent roaming in 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.

While many countries allow permanent roaming without 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.

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, effectively imposing a ban on this practice in 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 solutions allow a single physical 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.

Private Networks Market: Vendors Hold Key to Operators’ Success

Private networks are still an emerging market and many players offering vertical-specific solutions or specialized services are entering the space to grab a piece of the pie. There is a vast selection of vendors offering small-cell, LTE and 5G hardware as well as end-to-end easy-to-deploy solutions.

MNOs also view private networks as a growth opportunity against the backdrop of stagnating revenues from the consumer segment. After all, revenue diversification is need of the hour! Many operators have forged partnerships with vendors either to develop private network solutions or collaborate on network deployment.

Tier-1 operator-vendor partnerships

We studied a selection of Tier-1 operators and their private network go-to-market strategies. These strategies can be broadly categorized as “offer spectrum and private network solutions in partnership with vendors” and “offer only managed services to enterprises with their own spectrum”.

MNO-Equipment Vendor Partnerships

Source: Counterpoint analysis

These partnerships may also differ from one another as some of them may be aimed at co-developing industrial use cases or combining hardware and software with the operator’s assets, while others may be formed to act as global marketing partners. At times, these partnerships evolve as a result of long-term relationships for public networks. Some examples to help understand these dynamics:

BT and Ericsson, which had partnered in the past to build the UK and Ireland’s first private 5G network for ports at Belfast Harbour, signed a multi-million-pound deal in May 2022 to provide commercial private 5G for the UK market. The partnership combines the operator’s expertise in building converged fixed and mobile networks with the vendor’s network technology and enterprise solutions.
AT&T offers private enterprise network solutions with Nokia and Ericsson using CBRS spectrum in the US. On the other hand, Verizon has partnered with Nokia to market private 5G for international customers, mainly in Europe and Asia-Pacific.
德国电信和爱立信最近partnered for a new 5G standalone (SA) campus network offering. Ericsson provides the required modern 5G SA technology, while the operator looks after planning, deployment, operation, maintenance as well as optimization.

So, what do operators gain?

Many operators and vendors partner to co-develop private network solutions. A pre-packaged or end-to-end solution offering allows operators to reach a wider set of enterprises, especially small and medium businesses. They are better placed to sell a predefined solution as compared to the one with a high degree of complex customization, which at times makes it difficult for the enterprise to understand the business rationale in respect of investments.

Also, partnerships help operators increase their outreach across the ecosystem and gain access to new markets.

Takeaways

Since MNOs lack the specialized knowledge to target a large swathe of vertical markets, they should focus and prioritize their resources on three or four broad verticals. In order to profit from the enterprise sector, Counterpoint Research believes, operators need to invest in and partner with numerous vertical-focused companies. For every single vertical, and even some use cases within those verticals, a distinct set of partners will be required.

The success of operators may well depend on how willing they are to scale down, i.e. extend their reach into smaller organizations, verticals and sub-verticals. For many of these use cases, operators may not offer spectrum but provide network support services. For instance, Vodafone Germany and Lufthansa Technik launched a private 5G network in Hamburg based on standalone technology. The operator does not own the spectrum used to provide the connectivity but takes on the role of technology and service partner to support the deployment and operation of the private network.

它is important to acknowledge that although operators are set to gain by collaborating with various vendors, the same set of vendors may also be viewed as competition, especially in markets with enterprises having direct access to spectrum to set up private networks. We will be looking at this perspective in an upcoming blog. Stay tuned!

Ericsson Profit Surge Driven by 5G Sales in China

Ericssonlast week reported a higher than expected 38.5% YoY increase in its Q3 gross profit on revenues of SEK 57.5 ($6.5 billion), driven by a sharp increase in Asia sales. This also helped boost its overall gross margins to 43.1%, up from 37.7% in Q3 2019. Ericsson now has 113 commercial5Gagreements with 65 live networks.

The key driver behind the improved financial performance was increased sales in North East Asia, primarily mainland China. Total revenues in the region were up 39% YoY and 13% compared to the previous quarter. The only other region to report positive YoY revenue growth was the SE Asia, Oceania andIndiaregion with 5% growth, mainly due to gains in Australia and Indonesia. Together, sales in the two Asia regions grew 20.3% YoY and 15.3% compared to the previous quarter.

收入在所有其他regions were down on a YoY basis (Exhibit 1), although flat or marginally higher compared to the previous quarter (Exhibit 2).

Exhibit 1: Ericsson Q3 2019/2020 YoY Revenues by Region

In terms of business units, revenues from Ericsson’s network business dwarfed all other units, accounting for 73.7% of total revenues for the quarter. YoY revenues at theDigital Servicesand Managed Services business units fell while the Emerging Business unit reported flat revenues.

The increased revenue growth due to mainlandChinais a vindication of Ericsson’s strategy to compete aggressively for 5G contracts. Unlike rivalNokia, Ericsson has won contracts with all three major MNOs in China. The company believes that the increase in margins this quarter is largely attributable to its increase in scale coupled with lower production costs due to R&D investments.

Exhibit 2: Ericsson Q2/Q3 2020 Revenues by Region

However, in the same week, Sweden’s regulator announced that it was banning Chinese vendorsHuaweiand ZTE from supplying 5G equipment. MNOs currently using Huawei or ZTE equipment will have until 2025 to remove it from existing networks. Of the four MNOs, Telia uses mostly Ericsson equipment and recently signed a new contract with the company. However, rivals Tele2 and Hi3G Access both use Chinese equipment. Tele2 uses Huawei products and Hi3G Access uses a mix of Huawei and ZTE equipment.

In addition, the regulator has banned the use ofHuaweiand ZTE equipment in the forthcoming 3.5 GHz spectrum auctions and the later 2.3 GHz auctions. Although this ban will benefit Ericsson (and Nokia), there is a high risk that the Chinese government will retaliate in its domestic market. In fact, the Chinese regulator has already issued a notice calling for “a strengthening of supervision of foreign-invested telecom companies in China.” This could hit Ericsson hard in future quarters.Nokiais also potentially at risk as the company has several non-RAN contracts in China.

Overall, Ericsson continues to benefit from the early availability of its 5G portfolio, and in particular, its ability to offer Dynamic Spectrum Sharing (DSS) before most of its rivals. In fact, DSS software revenues accounted for a large part of the revenue mix in the quarter and also contributed to Ericsson’s margins boost. Political risks aside, Ericsson expects continued growth in China in 2021 with strong demand in North America on the back of spectrum auctions in the US as well as continued contract wins in Europe in Huawei’s absence.

After focusing on the Networks business unit since 2017, Counterpoint Research believes CEO Ekholm now needs to focus urgently on increasing revenues and delivering profitability in the company’s other business units. The company announced that it plans to increase R&D investment in cloud-native software development as well as continue investing in enterprise networks beyond the recent $1.1 billion acquisition of wireless LAN companyCradlepoint.

Ericsson Bets on Future With Cradlepoint Acquisition

瑞典电信设备制造商爱立信,9月18, announced that it had acquired US-based vendor Cradlepoint for $1.1 billion. After the acquisition is completed, Cradlepoint will become a fully owned subsidiary of Ericsson and a part of its Business Area Technologies & New Businesses division. However, it will continue to operate under its existing brand.

Founded in 2006, Cradlepoint provides wireless WAN connectivity solutions. The company had revenues of approximately $135 million in 2019. Its business is divided into three broad markets:

Branch (i.e. fixed WAN market) — using LTE-TD, this was initially used as a back-up for fixed connections. However, now enterprises are relying on a primary connection.
Mobile — includes public safety network operators, temporary mobile networks, etc.
IoT— includes managing secure payments for large retail customers, connecting ATMs, secure ID verification and connecting surveillance cameras, including those equipped with edge compute.

的业务活动,很亮tle overlap between the two companies. Cradlepoint essentially sells gateway routers located at the edge of the network, which connects a wireless (or fixed) local network to a wireless WAN, typically a cellular network. In contrast, Ericsson’s main business involves selling cellular equipment to mobile network operators (MNOs), rather than enterprises.

Cradlepoint is one of the leading players in the wireless WAN edge market in the US with around 23,000 customers, 1,500 channel partners and more than 1 million live SaaS subscriptions. Therefore, this acquisition will help advance Ericsson’s strategy of targeting the enterprise sector.

Although Cradlepoint’s revenues will not add much to Ericsson’s bottom line today, the wireless WAN edge market is a fast-growing market and, with investment from Ericsson, the acquisition could become very profitable.

As more and more spectrum becomes available, both in the US, Western Europe and elsewhere Ericsson will face a lot of competition from rivals such asNokia这也是行业大举投资。它recently announced that it had more than 180 private network customers.

On September 28, open RAN vendor Mavenir Networks announced that it had acquired UK-based ip.access, a small cells vendor, strengthening its position in theprivate networks marketparticularly the CBRS market in the US. Counterpoint believes that the private networks market is one of the best opportunities foropen RANin the short term.

However, all these vendors risk incurring the wrath of their MNOs customer base if they are deemed to be competing directly with them. Quite how they plan to avoid this remains to be seen.

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‘Off-the-Shelf’ eSIM Provisioning Software Gaining Momentum

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Navigating Permanent Roaming for IoT: Challenges and Solutions

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