Embedded SIMs NOT the End for MNOs Competing Against Apple and Google for
Customer Ownership says ABI Research
LONDON -- January 15, 2013
Whilst only 7 million embedded SIMs shipped in 2012 the advent of standards
and subscription management are expected to result in 195 million devices
including the technology by the end of 2017. Many assume that MNOs will be the
biggest losers if embedded SIMs crossover into smartphones, tablets and
consumer electronics devices. However, a new report from ABI Research
concludes that, whilst the likes of Apple and Google would benefit from the
introduction of embedded SIMs, it is the MNOs that potentially have the most
Apple and Google have already taken the lead in terms of brand recognition and
loyalty amongst their customers and they sell and distribute their own devices
directly to consumers. Both also have strong and well-populated app stores
which provide them with the means to activate and personalize devices as well
as service provision.
It is not all one way traffic against MNOs. The ability to switch networks
would certainly open new M2M applications and broaden their appeal to hesitant
customers. The larger potential is in the area of consumer electronics and
handsets. Rather than losing control and increasing churn, embedded SIMs would
allow MNOs to adopt flexible subscription management, improved device
distribution and activation processes as well as removing the current burden
of SIM card inventory.
Security & ID Practice Director, John Devlin, said, “My recommendation would
be for MNOs to embrace such technological developments like embedded SIMs and
to drive the market forward rather than looking to block and stifle
competition with closed business practices. A more open and progressive stance
would increase their appeal, open up new business models and use cases as well
as drive innovation and build customer loyalty. It would also undoubtedly
increase their competitiveness against any likely new entrants.”
The arguments for and against embedded SIMs are reviewed and discussed in the
report “Embedded SIMs for M2M, Mobile and CE Mobile Devices”, published as
part of ABI Research’s SIM Card Research Service.
ABI Research provides in-depth analysis and quantitative forecasting of trends
in global connectivity and other emerging technologies. From offices in North
America, Europe and Asia, ABI Research’s worldwide team of experts advises
thousands of decision makers through 40+ research and advisory services. Est.
1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
Christine Gallen, +44.203.326.0142
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