How eSIMs can bring a revolution in India's connected device ecosystem

From revolutionising farming to simple consumer goods, eSIMs are expected to drive the next data change in the country

The world’s largest technology company Apple is often criticised for lagging behind peers Samsung and Google in bringing the latest technologies to its products, but the tech giant’s role in popularising newer technologies cannot be denied. This time, it is eSIMs or embedded SIMs that Apple has adopted for its flagship iPhone. And that is set to give impetus to an industry that has been coming up for a while now.

Even in India, as more devices get connected, the market for eSIMs is expected to explode. In areas such as connected cars, manufacturing and consumer durables, the use of eSIMs are already getting adopted, with some industry heavyweights as well as startups backing the technology. According to an estimate by Data Bridge Market Research, the global eSIM market stood at $180.3 million in 2017, and it is projected to expand at a CAGR of 29.4 per cent between 2018 and 2025.

E-SIMs allow manufacturers to embed SIM cards into the devices and change their configuration on-the-go, instead of removable SIMs commonly used in mobile phones. It also allows users to switch networks without physically taking out a SIM card from the device.

In May this year, the Department of Telecommunication (DoT) even released guidelines for use of machine to machine (M2M) communication SIMs, including eSIMS. The technology has already made its way into India with Reliance Jio and Bharti Airtel partnering with Apple for its Watch 3 device launched last year. The two companies will partner with Apple for eSIMs in the latest crop of iPhones as well. Mahindra & Mahindra (M&M) is starting the use of this technology in its connected vehicles platform DigiSense to address multiple consumer segments — farmers, commercial vehicle drivers, fleet operators or car owners.

“We are already working with eSIM applications for the DigiSense 2.0 platform, given that DigiSense has been so widely received across over 10,000 vehicles in the country. With the chief idea being that these platforms will help users gather more data about how their devices function and can be optimised, eSIMs are actually well suited for connected technology,” said Arvind Bharadwaj, chief technology officer, farm equipment sector, M&M.

One of the main reasons why the company is using eSIMs, Bharadwaj says, is the level of simplicity and freedom it would introduce to the whole customer experience. M&M is working with leading telcos and telecom equipment providers to meet the eSIM requirements.

The first DigiSense-enabled Mahindra vehicles launched in 2016 were light commercial vehicles like Mahindra Jeeto, construction equipment vehicle Mahindra Earthmaster, heavy commercial vehicles of the Mahindra Blazo series and Mahindra Jivo tractors. The company also has fleet management solutions for truck operators to digitise crucial operations, including tracking and advanced vehicle health monitoring and reporting, among other things, which ensure efficient usage of fuel and reduced downtime.

Tata Communications has developed a software solution called MOVE which supports traditional SIM as well as eSIM capabilities making the solution both carrier independent and flexible. In the automobile segment particularly, MOVE platform enables a manufacturer to become a global mobile virtual network with all associated capabilities including end-user billing, roaming plans, policy controls, etc. The platform controls eSIM profiles using over-the-air (OTA) technology.

For example, DRVR, a Thailand-based international fleet management application provider that operates its fleets across Thailand, Myanmar, the Philippines and Indonesia, uses the MOVE platform to convert information collected from vehicles across countries into actionable insights.

According to Anthony Bartolo, chief product officer at Tata Communications, a major shift in the penetration of shared vehicles is also underway even in densely populated cities of India. Further, with new requirements asking every public transport vehicle in India to be fitted with tracking devices, the stage for automotive companies to adopt technologies like eSIMs has arrived.