Online Forum Accelerating eSIM - PowerPoint Presentation

Slide1

Online Forum

Accelerating eSIM

Adoption in MENA

22 June 2020

Slide2

Device

download

eSIM Profile

eSIM

Identify & authenticate

Operator

Device

deliver

SIM card

SIM Card

Identify & authenticate

Operator

SM-DP+

What is eSIM ?

Slide3

Cars

Planes

Drones

Bikes

Trucks

Meters

Street lights

Dog Collar

Motorcycles

List may not be exhaustive

IoT

devices:

eSIM

is real

Slide4

Samsung

Gear S3

Samsung

Galaxy

Watch

Apple Watch

Series 3, 4 and 5

Huawei Watch 2

Mobvoi

TicWatch

2

Microsoft Surface

Pro

iPad Pro

tablet

Huawei

dtab

tablet Lenovo Mix 630

Asus

Transformer Mini

iPhone XR, XS and XS Max

Smartwatches

Laptops, notebooks, tablets

Smartphones

Samsung Galaxy Fold

NUU Mobile

X5

Nubia Alpha

Amazfit

Verge 2

HP Spectre

Folio

HP Spectre

x360

Google Pixel 2, 2 XL, 3a, 3a XL

iPhone 11, 11 Pro

and 11 Pro Max

iPad

Google Pixel

4, 4 XL

List may not be exhaustive

Motorola

Razr

Lenovo

Yoga 5G

Samsung Galaxy S20 S20+

S20 Ultra

Huawei P40

P40

Pro

Consumer devices:

eSIM

is real

Slide5

GSMA

eSIM

has wide Industry support

Slide6

v

June 2020

M2M

Version 4.2

Profile Delegation Management

Emergency Call

Remote Profile Management

Enterprise

LPA API

Proxy LPA

eUICC O/S Update & Renewal

Advanced Activation Code

April

2021

Consumer

Version 3

Multiple Enable Profile

Device Information Code

Multiple Root DS

Integrated

eUICC

Push DS

eSIM

project: next steps

Slide7

22 June 2020

Online Forum – Accelerating eSIM Adoption in MENA

Pablo Iacopino Director of Ecosystem Research

eSIM

is now: turning industry work into

customer adoption

Slide8

Agenda

1

Global

Trends and Developments

2

MENA Outlook

Slide9

All the major OEMs are now on board

eSIM can only accelerate – the next 2 years are key

Shares of smartphone shipments – globally

Apple the pioneer

Samsung and Huawei have launched

5G/

eSIM

smartphones

Motorola the boldest

Don’t forget the other OEMs

Source: Statista and GSMA Intelligence

Google

Motorola

NUU Mobile

Slide10

Operators are calling for OEMs to prioritise

eSIM

A wake-up call for OEMs that have yet to launch

New smartphone features: what should OEMs prioritise?

Operator views (% of respondents)

Source: GSMA Intelligence Operator Device Survey 2020 (100 operators). Q – Which of the following smartphone features do you believe vendors should prioritise in their devices?

5G top priority

(unsurprisingly)

eSIM

is the 2

nd

Implicit call for OEMs to launch 5G smartphones with

eSIM

capability

Slide11

eSIM

smartphones are (typically)

a premium device

But Apple is lowering the entry point – good news

Apple

Samsung

Huawei

Google

5G

5G

5G

5G

5G

Prices in

£

Average price

Ideal price to spur mass-market 5G adoption (operator survey)

Source: Retail prices and GSMA Intelligence Operator Device Survey 2020 (100 operators)

Slide12

Operators:

eSIM

service is now

real and global

China is a big miss…but for how long?

Across 64 countries

Number of mobile service providers offering

eSIM

service for smartphones

Source: GSMA Intelligence. Minimum number of operators & countries based on the lists provided by Apple, Samsung and Huawei complemented with GSMA Intelligence research

More than doubled

Slide13

Full launch: all MNOs have launched

Half-way through or more

Yet to launch

Top 30 mobile markets:

eSIM

almost everywhere

Already ubiquitous (or nearly) in many markets

Source: GSMA Intelligence. Top 30 mobile markets by mobile revenue. MNOs with at least 5% share of smartphone connections in a given country

Number of MNOs offering

eSIM

service for smartphones

Slide14

When will further operators launch

eSIM?

Great operator expectations for 2020–2021

Launching

eSIM

service for smartphones

Operator plans (

% of respondents

)

Source: GSMA Intelligence Operator Device Survey 2020 (100 operators). Q – When do you plan to make

eSIM

service commercially available to your smartphone customers?

Time for take-off.

About two thirds of operators plan to offer

eSIM

services by the end of 2021

Why wait?

Nearly 30% plan to offer their

eSIM services during 2022–2025… …Some of these may reconsider their plans

Big boost

Slide15

42%

27%

35%

~3

bn

~2.5

bn

~2

bn

eSIM

smartphone connections (2025)

Future outlook:

eSIM

adoption in smartphones

The march towards mainstream

Source: GSMA Intelligence.

eSIM

scenario analysis

eSIM

smartphone connections as % of total smartphone connections (installed base)

WORLDWIDE

Slide16

Potential benefits of

eSIMIncremental revenue and further consumer digitisation

Think beyond smartphones:

smartwatches, laptops, tablets.

eSIM

makes it easier

eSIM

matters beyond smartphones:

Of all device unit sales to consumers, 25% are non-phones. Generate new revenue is the goal

eSIM fits for purpose

…but consumers need to see real benefit in connecting those devices to mobile networks (typical value for money principle)

Source: GSMA Intelligence Operator Device Survey 2020 (100 operators). Q – Rate the following potential benefits associated with

eSIM

based on how important they are to your business

Potential benefits

Score ranges between 1 (not at all important) and 5 (extremely important)

Slide17

eSIM

in IoT vertical sectors

Slow adoption so far – Automotive is an exception

China Telecom/KDDI partnership

China Mobile/NTT

Docomo

partnership

Aircraft

Airbus

/

Transatel

partnership

Utilities

Iskraemeco

/Arm partnership (

eSIM

smart meters)

Landis+Gyr

(new

omni

-carrier eSIM

smart meter)Workz

Group in Africa (eSIM water meters)

Healthcare

Brighter AB (eSIM

device for diabetes)

Audi

BMW

General Motors

HyundaiKIA

Land Rover

MercedesPSARenault/Nissan

SeatVolkswagen

Challenges

Automotive

leads

the way

Beyond cars there are single initiatives rather than sector-wide deployments

Ecosystem fragmentation

Integration and interoperability of different

IoT

solutions and platforms

Unfocused

eSIM

strategies

Slide18

Agenda

1

Global Trends and Developments

2

MENA Outlook

Slide19

eSIM

commercially

availabe

mostly in GCC8 of 25 MENA countries have launched

eSIM

for smartphones

Across 8 countries

Number of MNOs

offering

eSIM

service

for smartphones

Source: GSMA Intelligence. Minimum number of operators & countries based on the lists provided by Apple, Samsung and Huawei

Launched

Not yet

Slide20

Full launch: all MNOs have launched

Once launched

eSIM

gets full support

eSIM

service is ubiquitous in markets that have launched

Source: GSMA Intelligence

Number of MNOs offering

eSIM

service for smartphones

Slide21

MENA

eSIM

adoption in smartphones

Full support means ~200mn

eSIM

connections by 2025

Traditional SIM smartphone connections

eSIM

smartphone connections

eSIM

share

Source: GSMA Intelligence.

Medium adoption scenario

Slide22

IoT

: a promising market for

eSIM

But much work is needed from all stakeholders

MENA

Source: GSMA Intelligence

Cellular

IoT

connections will double

(2020-2025)

Room for

eSIM

growth

$55 billion

IoT

revenue in 2025

for all ecosystem players

Governments play a pivotal role

Regulators in some countries have started to consider

regulatory frameworks for

IoT

2x

Slide23

Smartphones

Other consumer

devices

IoT

vertical

sectors

eSIM

support by OEMs and Operators

Smartwatch:

eSIM

support by OEMs and Operators

eSIM

in Automotive

Customer adoption (it takes time)

eSIM

adoption beyond smartwatches (i.e. l

aptops

, tablets)

eSIM

deployments in other

IoT

use cases

Growing

fast

Potential upside

5G

Covid-19

boost to online

&

digital

More healthcare services in smartwatches

Always connected PCs

5G

Ecosystem alignment on specifications

Growing

s

lowly

In summary

Things to watch

Will

eSIM

drive changes in market shares?

eSIM

-only phones (when)?

Will 5G and

eSIM

drive new interest in cellular connected laptops?

Will Utilities be the next Automotive?

Slide24

THANK YOU!