W H I T E PA P E R

UNDERSTANDING THE eUICC (eSIM)

A guide to the eUICC in large-scale IoT deployments
 CONTENTS
1. Introduction 3
2. What is the M2M eUICC? Some useful definitions 4
3. Evolution of the M2M SIM 5
3.1 Connecting to mobile networkS 5
3.2 M2M SIMS OPERATIONAL CHALLENGES 5
3.3 Understanding remote provisioning 6
3.4 Benefits and opportunities of M2M eUICC 6
4. How to reduce the complexity of eUICC deployment and management 7
4.1 Why deploy the eUICC as a managed service? 7
5. Three use cases: Why & when to deploy the M2M eUICC 8
6. IoT eUICC Managed Services from Telenor Connexion 9

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 1. INTRODUCTION
Anyone planning their IoT strategy today faces many technology-
related decisions which will impact the long-term success of a
product deployment. If, how, and when to adopt eUICC technology is
one of these crucial choices.
eUICC, or eSIM as it is sometimes referred to, has been around for a number of years, but
standardization has now reached a point at which the eUICC is suitable for large-scale M2M
deployments. However, the technology is still in an early stage of implementation, which
means that deployments of eUICC-based solutions come with considerable complexity.
This paper will serve as a guide to making informed decisions about the eUICC. Over
the coming pages we will examine the potential benefits of the eUICC and explore the
challenges involved in adopting this technology.
With a history that goes back twenty years, Telenor Connexion have witnessed and
stimulated a number of technological shifts in M2M and the Internet of Things. We hope
sharing our insights into today’s technological and market trends will help you succeed with
IoT in the long term.

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 2. WHAT IS THE M2M eUICC?
SIM Card
SOME USEFUL DEFINITIONS
UICC eSIM VS eUICC – WHAT IS THE DIFFERENCE?
eSIM and eUICC are often used seemingly interchangeably, even though there is a difference
between the two: the eSIM is the hardware component of the SIM and a physical form that
can be soldered into a solution. The eUICC is the software component that allows the remote
SIM provisioning of multiple network profiles. For the purposes of this paper, we will primarily
use the term eUICC.

UICC:
The hardware used in mobile devices that contains SIM and/or USIM applications enabling
eUICC/eSIM access to GSM, UMTS/3G and LTE networks.
eUICC is available on
both solderable and SIM:
plastic SIM cards.
Subscriber Identity Module. Refers to the data containing a unique identifier which is stored
on a UICC.

SIM CARD:
The common name for the plastic card which holds a UICC.

eUICC:
Embedded Universal Integrated Circuit Card.

eSIM:
Embedded Subscriber Identity Module — Embedded SIM is — a UICC that supports “over-
the-air” provisioning of an initial operator subscription and the subsequent change of
subscription from one operator to another in accordance with the GSMA Embedded SIM
specification. Use of the GSMA Embedded SIM specification simplifies industrial and logistic
processes for the distribution of M2M equipment.

GSMA:
A trade body that represents the interests of mobile network operators worldwide. The GSMA
includes around 800 mobile operators as full members and an additional 300 companies as
associate members.

M2M AND IOT:

The terms machine to machine (M2M) and Internet of Things (IoT) refer to connecting
machines/things to the internet or closed networks to enable new services or process
efficiency. While IoT is often used as a broader term than M2M, in this paper we will use the
two terms interchangeably.

Smart Cities Smart Meters POS & Displays Wearables Connected Vehicles

eUI
CC

UNDERSTANDING THE eUICC: WHAT IS EMBEDDED?

The eSIM originally referred to a SIM card with a form factor suitable for soldering it into
a device. In this paper the term eUICC will refer to a SIM card supporting “over the air”
provisioning independently of the form factor.
eUI
CC

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 3. EVOLUTION OF THE M2M SIM
Mini SIM / 2FF
Since the 1990’s, businesses have been connecting machines through mobile networks. This
is commonly known as M2M connectivity. Similar to SIM cards used in mobile phones, the
form and functionality of M2M SIM cards has evolved along with market demands.
A UICC and eUICC can come in multiple form-factors:
• 2FF, 3FF, 4FF – Plastic SIM cards of different shape and form
• MFF2 – SIM card suitable for soldering into a device.
Micro-SIM / 3FF

3.1 CONNECTING TO MOBILE NETWORKS

A connected “thing” is identified on the mobile network by the subscriber identity stored in
its SIM card. The identity defines which connectivity service provider is being used. Based on
Nano-SIM / 4FF
a commercial agreement with the owner of the machine, the service provider defines which
network services are available and delivers those services using a combination of their own
and sub-contracted mobile networks.

The SIM identifies a “thing” Devices can connect to

eSIM / MFF2 on a mobile network other networks by roaming.

Services are provided based on This enables coverage in situations

the identity of the SIM card. where the home network is unavailable.

3.2 M2M SIMS OPERATIONAL CHALLENGES

Historically, SIM cards could hold just one subscriber identity linked to a single service
provider. One service provider can still provide access to several networks through roaming,
but in order to switch service providers, the SIM card needed to be physically changed to a
new SIM card with a different subscriber identity.
Physically exchanging SIM cards creates complexity for companies managing large fleets of
devices, especially for international deployments, or if the SIM card is not easily accessible.
For example, if a company wants to permanently deploy devices in markets where
permanent roaming is prohibited by regulation, such as in China and Brazil, that company
will need multiple connectivity service providers. This means SIM cards from multiple service
providers need to be managed in the supply chain.
Another example of inefficiency can be found when a business wants to switch service
providers when the existing contract expires. This might become costly, depending on how
easy it is to physically access the SIM card in the already deployed fleet of machines.

The eUICC enables remote This allows switching network profiles without Permanent
switching of SIM profiles exchanging SIM cards. roaming, or
It is important to note that one cannot swap the using a
eUICC mobile network operator (MNO) on a daily basis. non-domestic eUICC
This process requires a project between the service
transferring and receiving MNO and can take provider, is
several months. prohibited in
some markets
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 3.3 UNDERSTANDING REMOTE PROVISIONING
WHAT IS PROVISIONING? HOW IS EUICC RELATED TO ROAMING?
Provisioning is the process of attaching There are multiple ways to provide
certificates and profiles to a UICC. A profile coverage across different mobile
as a combination of file structure, data networks. Roaming is in general the most
and applications. straightforward and cost-efficient model.
However, for some markets and use
WHAT IS A SUBSCRIBER IDENTITY? cases, the established roaming model
The operator profile enables access is not fit for purpose. For example, in
to a specific operator network. The countries like China and Brazil, regulation
operational profile contains applications prohibits roaming for devices that resides
and credentials which allow the SIM to permanently in the country. In such use
function on a network. cases, eUICC-based solutions can enable
switching to local SIM profile to adhere to
A manufacturer installs an initial operator
regulations.
profile known as the provisioning profile
(or bootstrap). This profile allows the UICC
or eUICC to connect to a mobile network. WHAT IS LATE STAGE PROVISIONING?
With an eUICC, that provisioning profile Late stage provisioning is relevant for a
can later be changed remotely. connected device which is manufactured
in one location but deployed in many.
WHAT IS ROAMING? When the device reaches its destination,
the operator profile is automatically
Roaming refers to the operation a device
changed according to predefined business
on a particular mobile network using
rules.
a SIM identity from a different network
operator. Over the last 30 years this
model has been proven and developed for WHAT IS REMOTE PROFILE SWITCHING?
mobile networks. Roaming can be offered The eUICC can be configured to switch
regardless of UICC or eUICC. between multiple MNO profiles. One
profile can be used at a time. In addition,
every profile requires one subscription,
which can prove costly. Regardless,
the eUICC will utilize the most suitable
profile depending on location or other
predefined business rules.

3.4 BENEFITS AND OPPORTUNITIES

OF M2M eUICC
To address the inefficiencies of the traditional SIM, the GSMA is developing a global
specification for M2M eUICC. This standard enables remote switching of subscriber
identity on a SIM card. This means the eUICC can be installed during manufacture and the
connectivity supplier can be changed at a later date without the need to physically switch
the SIM card.
The release of Version 3.1 of the GSMA M2M eUICC standard in 2016 enabled sufficient
interoperability between technology vendors to make the eUICC viable for large scale IoT
deployments. Since then, vendors and service providers have been hard at work developing
the technology, services, commercial relationships and operational capabilities that will
bring the benefits of the M2M eUICC to the market.

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 4. HOW TO REDUCE THE COMPLEXITY OF
eUICC DEPLOYMENT AND MANAGEMENT
Implementing and operating eUICC-based M2M solutions requires
a lot more than just a new type of SIM card. Succeeding with the
eUICC requires secure infrastructure to manage subscriber identities,
commercial and technical integrations across multiple service
providers as well as the competence to operate and manage the
lifecycle of the overall setup.
To accelerate time to market, a few very large enterprises have chosen to build the necessary
internal capabilities to manage eUICC deployment. However, we do not expect this model
to be widely deployed as connectivity service providers are now offering eUICC capabilities
integrated with managed IoT connectivity services.
For typical use cases, it will be more attractive to source eUICC-based services from a service
provider that can achieve scale effects across multiple enterprises. A connectivity service
provider can provide the necessary competencies to manage the eUICC, which is difficult to
replicate unless incorporated in a broader managed connectivity offering.

4.1 WHY DEPLOY THE eUICC

AS A MANAGED SERVICE?
SIMPLIFY VENDOR MANAGEMENT
Get a single provider for all your technical, commercial and
operational needs worldwide – including relationships with third-
party service providers.

OUTSOURCE SPECIALIZED KNOWLEDGE

Stay focused on your core business and skip the cost of building and
managing an in-house team of IoT connectivity experts.

REDUCE YOUR RISK

Ensure reliable connectivity for your IoT modules with an
experienced partner to manage your eUICC fleet.

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 5. THREE USE CASES:
WHY & WHEN TO DEPLOY THE M2M eUICC
Changing the SIM card of deployed devices can be a costly and complicated process, especially
in an IoT environment. One of the main strengths of eUICC is that it makes it possible to manage,
download, and remove carrier profiles over-the-air. The benefit of being able to change the
MNO without having to change the SIM cards is that it ensures IoT customers can continue
running connected services, regardless of their relationships with individual MNOs. These
qualities of eUICC are particularly attractive for anyone looking to expand their global footprint
as well as those who cannot or are unable to use traditional roaming. Now let’s look at a few
typical use cases.

eUICC USE CASE 1:

CONSOLIDATE YOUR CONNECTIVITY SERVICE PROVIDERS
Source global eUICC from one managed connectivity provider to achieve global IoT connectivity
instead of mulitple local/regional providers.

OPERATIONAL BENEFITS:
• Lower total cost of ownership compared to sourcing multiple local SIMs.
• Network access in countries such as China and Brazil where permanent roaming is prohibited.
• In some cases improved local service characteristics, such as in latency, for example.

DRAWBACKS RELATED TO THE COSTS OF eUICC:

• Global eUICC based services are typically more expensive than directly sourcing SIMs
WHEN NOT TO USE THE eUICC:
• When roaming-based, global M2M services are applicable. In general, these services are more
cost efficient with more consistent services and better coverage.

eUICC USE CASE 2:

DUAL-SOURCE YOUR CONNECTIVITY SERVICE PROVIDERS
When a connected device has been manufactured in one location but deployed in many. Source
connectivity from two (or more) service providers while using the same SIM cards rather than
multiple physical SIM cards.

OPERATIONAL BENEFITS
• Streamlined supply chain compared to having multiple physical cards.
• The flexibility to use multiple service providers, contributing to optimized cost and quality of
service across regions.
DRAWBACKS:
• The choice of eUICC service providers is relatively limited.
• Increased costs to on-board, operate, and manage multiple technical, operational and
commercial relationships.
• More expensive SIM cards and switching costs compared to using traditional Global SIM cards
from a single service provider.
• Sourcing and managing the physical SIM cards will be more expensive, and will dramatically
increase demand on your IT operations to services across providers.
• The OEM need to have advanced technology to orchestrate location of the SIM card. unless
this is bought as a service from the service provider.
WHEN NOT TO USE THE eUICC:
• When it’s more cost efficient and less complex to use multiple physical SIM cards, eg smaller
deployments.

eUICC USE CASE 3: CHANGE YOUR SERVICE PROVIDER

Switch SIM profile id over-the-air rather than switch service provider.

OPERATIONAL BENEFITS:
• Possibilities exist to switch service providers over-the-air at contract end.
DRAWBACKS:
• eUICC are more expensive than traditional SIM cards and limited choice of eUICC service
providers.
• Limited choice of eUICC service providers.
• There is still a cost attached to switching providers.
WHEN NOT TO USE THE eUICC:
• Deployments where physical exchange of SIM cards is not cost prohibitive eg, smaller
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 6. IOT eUICC MANAGED
SERVICES FROM TELENOR
CONNEXION
We provide everything you need to quickly
deploy a connected product or solution that
will deliver business value over the long term.
Telenor Connexion fully support eUICC
deployments, taking care of the commercial,
technical and operational complexities
related to the eUICC technology. We offer
our customers a “full stack” IoT services,
from hardware to connectivity and data
cloud management to software and app
development. The eUICC technology is
integrated in this stack of IoT managed
services.
To learn more contact:
sales@telenorconnexion.com

Managed Connectivity allows our clients to connect their Managed IoT Cloud provides the tools to store, collect and
products to mobile networks anywhere in the world. With just analyze the data generated by connected devices. Managed
one standardized SIM, one point of contact and dedicated IoT Cloud uses core components from Amazon Web Services,
support from connectivity experts, our customers can skip the delivering a scalable, secure and reliable solution. Rather than
complexity of buying IoT SIMs from a different network operator building a platform from scratch, with Managed IoT Cloud, our
in each market. customers can take an idea to reality in just a few weeks’ time.

End-to-end support helps our customers realize value Dedicated service is available 24/7/365 from our IoT
with connected products. Together with partners, we offer experts. Based in Sweden, our Service Operations Center work
an end-to-end IoT solution including hardware sourcing and exclusively with Telenor Connexion IoT solutions – nothing else.
software development. We offer project management and
implementation support services to industrialize use cases
within months instead of years.

ABOUT TELENOR CONNEXION

Telenor Connexion is the specialised IoT company within the Telenor Group, one of the world’s
major
mobile operators. Building on 20 years of experience, Telenor Connexion provides global IoT connectivity
and cloud services to enterprises with large fleets of connected devices as well as third-party service
providers.
We manage more than 10 million connected things in more than 200 countries for global customers
including Volvo, Scania, Hitachi, Verisure Securitas Direct and Husqvarna. With headquarters and tech
centre located in Sweden, the company has regional offices in the UK, US, Germany and Japan.

www.telenorconnexion.com
sales@telenorconnexion.com