Traditional subscriber identity module (SIM) cards aren’t reprogrammable but that’s...

vendors’ desires for SIM footprints to be minimized for slimmer devices, embedded SIMs, such as in machine-to-machine (M2M) devices, show that the cards can get even smaller, particularly if the SIM hardware is soldered onto the circuit board, it said. If SIMs can no longer be removed from a device, they must be made reprogrammable, it said. The GSM Association has developed a requirements document for a reprogrammable SIM, called an eUICC. It’s defined as a “small trusted hardware component, which may be soldered into mobile devices, to run the [SIM application] and enable the secure changing of subscription identity and other subscription data,” the report said. The eUICC promises benefits for stakeholders involved in M2M where SIMs may be non-removable or impractical to swap, it said. M2M vendors could manufacture devices with “blank” SIMs that could be provisioned in any country after being shipped and sold, a solution of interest to mobile operators because it enables them to take the lead in the emerging M2M market, it said. M2M customers could benefit from the flexibility of being able to easily change connectivity service providers. And SIM vendors benefit from taking a new central role in the reprogrammable SIM chain and from new revenue streams from managing and manufacturing such SIMs, it said. Unlike the current SIM system, eUICC systems need a subscription manager to handle secure routing and data preparation. When an eUICC is made, its issuer will load the master keys of the eUICC into the secure routing database, and the keys will allow the database to access the SIM and download a new operator profile. The secure routing database interconnects with a series of data preparation databases, so when a consumer requests a mobile network operator profile, the secure routing database associated with the reprogrammable SIM seeks the profile from the relevant data preparation database and downloads it to the eUICC, it said. Enabling eUICC functionality in an existing mobile network will require interfaces between the network systems and subscription manager, it said. The new ecosystem has important implications for switching, because, where a SIM is embedded, consumers may have to ask the subscription manager to handle the switch rather than doing it themselves, it said. There’s also a risk that the set-up could fragment the market, if a subscription manager doesn’t link to all operators, preventing consumers from switching to a particular provider, it said. One possible solution is to interlink secure routing subscription managers, though that will require industry cooperation and standardization, it said. The main focus of eUICC technology so far has been M2M, and standards are now under way in the European Telecommunications Standards Institute, the report said. Going forward, the eUICC could either evolve to support non-M2M devices such as handsets, or increase its functionality to enable swapping rather than just switching. There’s no technical reason why the eUICC can’t support handsets, it said. EUICC swapping could expand coverage, lower costs and increase quality of service benefits to consumers, but because swapping isn’t commercially attractive to network operators it’s unlikely they will support such a functionality, the report said. Handset makers, however, have shown more interest in bringing eUICC to market, it said. EUICC would also let consumers download a “local profile” when roaming internationally, enabling them to take advantage of local tariffs, it said. The report noted several “consumer pain points” in addition to market fragmentation. Current switching processes might be unsuitable and result in poor consumer experience and possible “slamming” practices, it said. There is “ample scope for consumer confusion” if people are required to adapt to new provisioning and switching process; and users could lose the subsidies they now have on handsets if mobile operators can’t guarantee their return on subsidies, it said. At this point, eUICC stakeholder motivations are best aligned for M2M applications, it said. The report recommended that regulators follow eUICC development closely and, once the first industry-standardized solution hits the market, investigate further.