Originally posted in Dutch at Computable
The promise of the eSIM (embedded SIM) has been around for years: flexibility, no more physical SIM cards, and easy switching between mobile network operators. This technology has found its place in the consumer market, with travel SIMs as an example. In the Internet of Things (IoT) world, widespread adoption has been slow because the complexity of devices without screens or user interfaces makes implementation too difficult. That is now changing.
During the Mobile World Congress (MWC), a development that had been in the works for quite some time was formally introduced to the market: SGP.32, the eSIM standard for IoT. This standard makes it possible to manage connectivity at scale and remotely, without physical intervention and with significantly greater flexibility in using various operators.
Why is this so relevant for the IoT industry, and to what extent can this standard be applied today?
eSIM in Smartphones
Virtually everyone reading this has heard of eSIM. New smartphones and tablets come equipped with it as standard and increasingly do not allow for the insertion of a physical SIM card. The device therefore already contains the SIM card’s functionality internally.
Previously, an eSIM was activated via an activation or QR code (SGP.22), and nowadays also via apps (SGP.22+). It is often said that an eSIM is “downloaded,” but in fact, it involves loading an operator’s profile onto a radio module (silicon) in the device.
The major advantage of eSIM is that multiple profiles can be used on a single device. For example, many users have added a local data plan while traveling outside Europe and later removed it.
For IoT devices, the situation is different. These devices have no screen, no camera, and no apps. Scanning a QR code or installing an app is therefore not possible. That is why a new method was needed to make profiles available, and that is exactly what SGP.32 was developed for.
Hosting SGP.32 profile
The benefits of SGP.32 for the IoT industry are similar to those for smartphones and tablets. In addition to a so-called hosting profile, multiple profiles can be added and managed over-the-air. The underlying technology is complex, but the impact is significant.
One of the most important—and often underestimated—benefits is zero-touch provisioning. Many IoT devices are installed in hard-to-reach locations. The ability to implement configurations remotely only after installation is therefore essential. No more pre-configuration in the factory or workshop, but complete flexibility on-site.
In addition, this standard simplifies global deployment. Instead of relying on a single operator and its network rates, the most suitable profile can be selected (automatically, if desired) for each country or region and activated over-the-air. This offers not only flexibility but also immediate cost optimization.
Finally, security plays a role. With each new standard, security capabilities are also expanded, including support for multiple secure communication protocols and improved control over access and management.
eSIM for IOT Reality
Although we often associate eSIM with embedded hardware, the reality is that a large portion of IoT devices will continue to use physical SIM cards for years to come. Fortunately, the predecessor to SGP.32, namely SGP.22+, already offers a proven interim solution. Here, a physical SIM card functions as an embedded eSIM. A hosting profile is placed on this card, after which additional profiles can be added, according to SGP.32. This makes it possible for existing hardware to still benefit from the advantages of eSIM.
Out of Sight
Many technological standards develop out of sight of the end user. We see the marketing terms—while the underlying changes have a major impact. Hardware must be adapted, ecosystems must evolve, and organizations must review their processes. But the direction is clear.
With the growth of IoT applications, the need for flexibility, scalability, and cost control is only increasing. SGP.32 offers a structural solution to this and removes a bottleneck from the market. What is presented as innovation today will be the standard within a few years. The parties that are already responding to this development are thereby building a lead—both technically and commercially.
Translated with the support of AI-tools (DeepL / OpenAI)