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eSIM brings together the three major operators, is the cardless era coming?

Following China Unicom and China Telecom, China Mobile recently launched the eSIM one-number dual-terminal service. This service will be on trial from January 23, 2019 to December 2019. Another operator has "relaxed" in promoting eSIM, which means that with a little breakthrough, the popularity of eSIM in China will one day come.

eSIM Past and Present

The technical concept of eSIM card was first proposed in 2010. The so-called eSIM refers to Embedded-SIM (embedded SIM card), which is the traditional SIM card. The card is directly embedded into the device chip. It is essentially a SIM card, but it becomes a SON-8 package IC and is integrated into the mobile device.

This means that users no longer need to go through tedious steps to remove the SIM card, identify the standard card, micro card, nano card, or worry about which model of mobile phone matches which type of SIM card, eliminating the need for Caused a lot of trouble.

In this way, it not only solves the problem of connection reliability, but also effectively reduces the card slot space of the mobile phone. Compared with the physical SIM card, it can reduce the space by up to 90%, making the mobile phone more convenient. Thin. The omission of accessories such as SIM card slots and trays can reduce the cost of this part.

eSIM is programmable and supports remote configuration of the SIM card through OTA (over-the-air card writing) to realize the download, installation, activation, deactivation and deletion of operator configuration files.

For users, changing network operators no longer requires changing cards. The eSIM card can be freely switched between multiple packages of different operators. This means that users can switch operators in real time according to their region and signal quality, just as conveniently as choosing WiFi. It is especially convenient for traveling abroad or business trips to other places.

eSIM card can realize multiple devices with one card. Mobile phones and smart wearable devices can be online at the same time with the same number and enjoy the same traffic service. This allows these devices to be connected to the Internet anytime and anywhere without being restricted by usage scenarios. Independent use greatly facilitates users.

From a security perspective, since the mobile phone no longer requires a physical card, the security of user data is more securely ensured. Therefore, it will no longer be necessary for hackers to find ways to crack stolen mobile phones in the future.

Although eSIM has multiple advantages, it also has certain disadvantages compared with SIM cards. For example, if the eSIM card chip is damaged, the cost of replacement may be higher; if a mobile phone with an eSIM card is used by others, the new and old numbers The difficulty of switching increases; if the mobile phone fails or is lost, services related to card replacement, number replacement, or changing mobile phones may cause trouble.

Giants gather in the eSIM field

In the promotion of eSIM cards, terminal manufacturers are pioneers, especially Apple, which can be said to be the pioneer.

In September 2014, when Apple released the iPad Air 2, it brought the concept of eSIM cards to actual products for the first time.

In August 2015, Samsung Gear S2 became the first smartwatch to support eSIM.

In October 2017, Google released Pixel 2 and Pixel 2 XL, becoming the first eSIM-compatible smartphones.

In China, Internet giants and mobile phone manufacturers are also working on eSIM cards. Many companies, including Xiaomi and Lenovo, have integrated eSIM functions into their own notebook products. Huawei launched the HUAWEI WATCH smart watch. The 2018 version also supports eSIM function

While terminal equipment manufacturers are embracing eSIM, the three major operators have also begun to develop eSIM business. China Unicom and China Telecom are moving faster than China Mobile, and China Mobile's eSIM one-number dual-terminal service has only recently arrived belatedly. Therefore, some people in the industry pointed out that China Unicom and China Telecom have launched this service, which has made China Mobile loose its attitude towards the eSIM business.

Is eSIM cheese or poison?

Mobile phone cards have gone through the earliest SIM cards, then to Micor-SIM cards, and then evolved into Nano SIM cards. Mobile phone cards are becoming smaller and smaller. From a technical perspective, eSIM technology has long been mature, and eSIM cards The remote configuration specification was officially released in early 2016.

From a demand perspective, eSIM can realize the function of one number and multiple terminals, and can simplify user account management. Under the current wave of wearables and the Internet of Things, the market demand for eSIM cards is huge.

According to authoritative department predictions, by 2020, the number of new eSIM connections will reach 200 million, and the world will have 346-864 million smartphones with built-in eSIM cards. Deutsche Telekom even boldly predicts that by 2025, eSIM will completely replace traditional SIM.

The three major operators have launched eSIM services, indicating that the communications industry has begun to change the usage model of SIM cards, in conjunction with 5G upgrades, to prepare for large-scale IoT applications. Currently, the eSIM technology used in the Internet of Things and the Internet of Vehicles is jointly promoted by manufacturers and operators.

Since there are so many benefits, why has eSIM been so difficult to popularize? In general, operators' interests, equipment deployment, and policy implementation are all reasons for the slow spread of e-SIM. Especially for operators, they are faced with both huge opportunities and huge challenges.

● There is a risk of becoming a pipeline.

The eSIM card allows users to switch between the networks of different operators, which undoubtedly reduces consumers' dependence on operators. Users directly contact mobile phone manufacturers through the eSIM card, which brings more convenience to terminal manufacturers. There are many possibilities, and terminal manufacturers are very active in promoting this technology. They hope to gain more user control through eSIM.

With traditional businesses being disrupted by the Internet, users (numbers) have become the only barrier for operators. Once this is broken through, operators will really be completely incompetent. Passage.

● The operator’s original SIM card procurement system and supply model will change.

● There will also be some corresponding changes in the resource management of full SIM cards.

In terms of interconnection between operators, issues such as how to unify preset certificates, who controls the connection between numbers and operators, and how to ensure information security during over-the-air downloads all need to be addressed. solve.

In addition, the basic value-added services attached to the SIM card will be lost. A small physical SIM card carries user data, one of the most important assets of operators. The names, numbers, tariff packages, usage habits, etc. of hundreds of millions of users.

In addition, as user mobility increases, operators compete more intensely for user resources, and competition among operators will become more intense.

Operators have to deploy many remote configuration and management systems, which leads to an increase in the cost of their operation and maintenance services. For operators, it is necessary to make certain improvements and deployments to existing management systems and hardware equipment.

Apple once filed a complaint with the U.S. Department of Justice, accusing AT&T and Verizon of colluding to prevent Apple from promoting eSIM, but it was unsuccessful. Spain has learned from the past. Spanish regulators asked operators to reduce the processing time for users to change networks to 24 hours, which resulted in a surge in user churn.

In this regard, an insider from an operator said that due to security issues and real-name requirements, operators are currently not considering incorporating eSIM into mobile phones, but will make relevant technical reserves.

Some experts said that the application of eSIM should be carried out in stages and steps. The eSIM business will cover the Internet of Things and consumer electronics fields, and it will be the general trend for eSIM to replace physical SIM cards.

(Xiao Qingju)

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