eSIM Summit: eSIM Adoption and Global Market Trends Market Status eSIM in 2022 and beyond: assessing new developments, market trends and consumer behaviour GSMAi Part 1 – eSIM involving in Massive IoT Can eSIM be the Linchpin of Massive IoT ? KORE eSIM in Action: How to accelerate and keep Massive IoT SAFE KORE KIGEN Speaker Brief eSIM Summit Theatre 3 - Hall 7 (250 pax) Part 1 - eSIM involving in Massive IoT Speaker Brief eSIM Summit Theatre 3 - Hall 7 (250 pax) Speaker Brief eSIM Summit Theatre 3 - Hall 7 (250 pax) Speaker Brief eSIM Summit Theatre 3 - Hall 7 (250 pax) eSIM Summit: eSIM Adoption and Global Market Trends eSIM in 2022 and beyond Assessing new developments, market trends and consumer behaviour DATE 2 March 2022 Pablo Iacopino Head of Research and Commercial Content eSIM A reality check Good progress Slow progress • Proliferation of eSIM devices • • Launch of 5G devices with eSIM technology Consumer awareness and adoption of eSIM • eSIM ‘democratisation’ (for consumers) through cheaper devices • eSIM promotion by OEMs and operators • Commercialisation of eSIM service for smartphones and smartwatches • eSIM for connected vehicles • Work and alignment on global specifications (including ieUICC) • eSIM for IoT vertical sectors (beyond Automotive) • eSIM for international roaming • eSIM for laptops eSIM in the smartphone market Nearly 60 eSIM smartphone models – more than half have 5G technology How many eSIM smartphones have been launched? Cumulative figures 57 43 5G Non-5G 32 25 16 3 8 Samsung 19 Apple Dec. 2017 Dec. 2018 Dec. 2019 Dec. 2020 Dec. 2021 • Most flagship smartphones are now eSIM-enabled • 5G and eSIM get together • Various models have a retail price < USD500 Source: GSMA Intelligence 15 Google 14 Huawei 4 Oppo 2 Motorola 2 Sony 1 eSIM service is now global eSIM reaches more than 3 billion mobile subscribers Commercial availability of eSIM service for smartphones Geographical reach Number of countries 82 24 Dec. 2018 Dec. 2021 • Most major markets are on board. eSIM is nearly ubiquitous in major markets • Africa is catching-up • China still missing…but for how long? Source: Minimum number of countries, based on the lists provided by Apple, Huawei and Samsung (publicly available information) and GSMA Intelligence research of the top 30 markets More than 230 operators offer commercial eSIM service Fivefold increase over the last 3 years Number of mobile service providers offering commercial eSIM service for smartphones 232 175 • Discussions with eSIM vendors indicate that this figure is even higher • eSIM is a group strategy • MVNOs are driving eSIM for international roaming 103 What lies ahead? 45 Dec. 2018 Dec. 2019 Dec. 2020 Dec. 2021 88% of surveyed operators plan to offer eSIM service by 2023 98% by 2025 Source: Minimum number of mobile service providers, based on the lists provided by Apple, Huawei and Samsung (publicly available information) and GSMA Intelligence research of the top 30 markets. Source: GSMA Intelligence Operators in Focus Research – Operator Survey (100 operators worldwide), Future of Retail (2021) Potential benefits of eSIM: what do operators think? Incremental revenues and opex savings – it’s all about further digitisation Potential benefits of eSIM Operator views • Streamline logistics costs by reducing physical SIM purchasing • Explore opportunities in new digital services (e.g. digital identity, access authorisation, mobile ticketing and payment) • Increase adoption of other mobile devices by linking them to a consumer's main subscription plan • Facilitate international roaming services • Be able to capture new opportunities in the growing IoT market (consumer and enterprise) • Be able to capture new opportunities among Digital Native consumers • Drive greater use of digital distribution channels • Enhance customer experience by digitising SIM-related operations Source: GSMA Intelligence Operators in Focus Research – Operator Survey (100 operators worldwide), Future of Retail (2021) 2021 survey Compared to 2020 survey IoT is a promising market for eSIM However, eSIM adoption is still low relative to its long-term potential TODAY FUTURE Global IoT connections – billion Automotive The addressable market for eSIM and iSIM is significant eSIM and iSIM are targeting a share of the cellular market eSIM is already mainstream in connected vehicles Single initiatives rather than sector-wide deployments Thousands Beyond Automotive 5.3 ~3x growth 40 30 20 1.9 13 10 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Consumer IoT Source: GSMA Intelligence 37 Enterprise IoT Cellular IoT eSIM for IoT: there is untapped demand Enterprises are accelerating their digital transformation IoT deployments drive digitisation Importance of eSIM in future IoT deployments Enterprises speak; % of respondents IoT deployments are: Enterprises speak; % of respondents • Awareness of eSIM is high IoT deployments are largely part of a wider digital transformation agenda 63% 37% eSIM for IoT is eSIM for digitisation 40% 44% • 40% of enterprises see eSIM as very important to a successful IoT deployment • Security and remote update of large volumes of devices are seen as the top eSIM benefits 10% 4% Part of a wider digital transformation agenda Standalone initiative Very important Somewhat important Source: GSMA Intelligence Enterprises in Focus Research – Enterprise Survey 2020 (~2900 enterprises across most vertical sectors) 2% Not at all I don't know I am not important familiar with eSIM eSIM Assessing consumer behaviour Consumers: do they know what eSIM is? Consumer awareness of eSIM is still low Consumer awareness of eSIM Percentage of total surveyed consumers who have heard of eSIM 2021 2020 28% 26% 22% 22% 27% 27% 26% 26% 25% 14% Source: GSMA Intelligence Consumers in Focus Research – Consumer Survey (2020 and 2021) South Korea USA Brazil Germany Italy 17% Japan 20% 14% 13% UK 30% France 33% • Less than 30% of consumers are aware of eSIM 40% (average) 35% 30%• 5pp increase 25% compared to 2020 20% (average) 15% 10%• Significant variations 5% by country…but no 0% correlation with eSIM service availability • More work is needed by operators and OEMs How do consumers first find out about eSIM? Slow push by OEMs and operators Finding out about eSIM Among surveyed consumers who have heard of eSIM (aggregate, 8 countries) 28% I read an article about eSIM 16% A friend/family member/colleague told me about eSIM I was told about eSIM when I bought a new device (e.g. phone, smartwatch, tablet) directly from the manufacturer I saw an advert for eSIM (e.g. on TV, in-store, online, at an airport) 15% 10% I received some information/promotional materials about eSIM from my mobile phone operator 8% I heard about eSIM in another way 8% Don't know / can't remember 8% I heard about eSIM through my work Source: GSMA Intelligence Consumers in Focus Research – Consumer Survey (2021) OEM push 7% Operator push • Operators and OEMs don’t talk much about eSIM to their customers • OEMs talk more than operators, especially in the USA, Japan and South Korea Are consumers interested in using eSIM? 50-50: half of consumers are interested (average) Consumer interest in using eSIM on a mobile phone at some point in the future Percentage of total surveyed consumers who own/use a mobile phone % interested Brazil South Korea 28% 34% 15% 62% 43% 58% Italy 21% 36% 57% USA 23% 32% 55% UK 16% France 14% Germany 13% Japan 7% 54% 38% 43% 29% 26% 39% 22% 29% Very interested Fairly interested Not at all interested Don't know Source: GSMA Intelligence Consumers in Focus Research – Consumer Survey (2021) Not very interested • Significant variations by country… • …but (again) no correlation with eSIM service availability • 16% don’t know (average)…fairly high share • No major differences by smartphone brand Why are some consumers not using/interested in eSIM? Various reasons – it means multiple challenges Reasons for not using eSIM or not being interested in eSIM Percentage of surveyed consumers who are not using eSIM or are not interested in using eSIM (aggregate, 8 countries) • Happiness with traditional SIM leads, especially in Europe • 15% don’t see the benefits of eSIM • 12% don’t understand how eSIM works Source: GSMA Intelligence Consumers in Focus Research – Consumer Survey (2021) How do consumers use eSIM? For main phone number Use of eSIM in mobile phones Percentage of surveyed consumers who use eSIM (aggregate, 8 countries) Only use eSIM when travelling aborad 4% Multiple phone numbers stored on eSIM 20% Multiple phone numbers stored on eSIM: France leads For secondary phone number 21% Source: GSMA Intelligence Consumers in Focus Research – Consumer Survey (2021) Don’t know 5% For main phone number 50% Charting the future: eSIM adoption in smartphones The march towards mainstream – Acceleration from 2023 onwards eSIM smartphone connections as % of total smartphone connections (installed base) Worldwide eSIM smartphone connections (2025) 50% 40% 40% 2.8 bn 33% 2.4 bn 26% 1.9 bn 30% 20% 10% 0% 2019 2020 Low adoption scenario Source: GSMA Intelligence eSIM scenario analysis 2021 2022 Base case scenario 2023 2024 2025 High adoption scenario eSIM Future outlook: what could accelerate eSIM adoption? Future outlook What could accelerate eSIM adoption? eSIM in the Consumer Market eSIM in the Enterprise Market • OEMs and operators raising consumer awareness of eSIM and promoting its benefits • Adoption of global standards/specifications (as opposed to proprietary solutions) • Enhancing user experience for eSIM activation and service management • 5G adding momentum to the use of cellular connectivity for IoT – hence pushing eSIM • Full launch by all OEMs • • Transition to eSIM-only smartphones The combined effect of eSIM- and iSIM-based solutions • China launching commercial eSIM service for smartphones • eSIM helping address key IoT deployments challenges (integration with existing technologies, • Migration to 5G: opportunity to push the transition to eSIM cost of implementation and security) • IoT companies having a clear eSIM strategy alongside their main IoT proposition eSIM Summit: eSIM Adoption and Global Market Trends GSMA eSIM Consumer GSMA eSIM M2M GSMA eSIM Service SCAN ME SCAN ME SCAN ME About GSMA Intelligence info@gsmaintelligence.com THANK YOU! Pablo Iacopino Head of Research and Commercial Content piacopino@gsma.com Speaker Brief eSIM Summit Theatre 3 - Hall 7 (250 pax) KEYNOT E AGENDA 1 2 M AR C O B I J V E L D S SVP, EAP KORE Can eSIM be the Linchpin of Massive IoT? KORE discusses where this technology fits in opening the globe to extensive IoT enablement, and how to optimise a technology that is rapidly developing in a competitive market. Proprietary & Confidential to KORE Wireless | 29 The State of Connectivity Massive IoT and the Role of eSIM 80,000 Smart Metering 70,000 2.7B Connections (Millions) 60,000 50,000 $0.9B Fleet Management Healthcare Broadband & Critical IoT (4G/5G) LPWA Connections by 2025 eSIM revenue generated in 2024 Massive IoT (Licensed LPWA – NBIoT & CAT-M) Legacy (2G/3G) Massive IoT 40,000 Unlicensed LPWA and Satellite Powered by LPWA 30,000 eSIM Adoption 20,000 Short-Range IoT (WiFi, BT, Z-Wave) 10,000 0 2020 2021 2022 2023 Sources: GSMA (IoT Revenue: State of the Market 2020) 2024 2025 2026 2027 2028 2029 2030 Proprietary & Confidential to KORE Wireless | 30 Industry and Customer Drivers to eSIM Network Sunsets Permanent Roaming Connected vehicles Autonomous vehicles Connected asset tracking Connected medical equipment Police bodycams Remote patient monitoring Supply Chain Environmental monitors Infrastructure monitors Connected water meters Proprietary & Confidential to KORE Wireless | 31 Mitigating Roadblocks in Massive IoT with eSIM Future-Proof Zero-Touch Provisioning Coverage & Resilience Regulatory Compliance Secure Minimal TCO Proprietary & Confidential to KORE Wireless | 32 Finding the True eSIM What Characteristics Sets Apart the Real eSIM? • eSIM or eUICC • GSMA version and features • Switching options • Device compatibility • Carrier availability • Multi-vendor compatibility Proprietary & Confidential to KORE Wireless | 33 5 Stages to eSIM Deployment 1 2 3 4 5 Strategy & Business Case Technology & Connectivity Options Technical & Operational Readiness Deployment of eSIM Connected Devices Management of Connectivity and Profiles Proprietary & Confidential to KORE Wireless | 34 eSIM as the Linchpin to the Future Global eSIM Connectivity OPEN IoT SAFE Blockchain Proprietary & Confidential to KORE Wireless | 35 PANE L AGENDA MARCO BIJVELDS SVP, EAP – KORE 1 2 eSIM in Action: How to accelerate and keep Massive IoT SAFE? KORE and Kigen address adoption and acceleration of eSIM and how to make most of standards-based security schemes such as IoT SAFE. L O I C B O N VA R L E T VP PRODUCT AND MARKETING – KIGEN Proprietary & Confidential to KORE Wireless | 36 37 THANK YOU Proprietary & Confidential to KORE Wireless | 38 Part 2 - eSIM Revolution eSIM Summit: eSIM Adoption and Global Market Trends Part 2 – eSIM revolution The inconvenient truth – 6 years as an eSIM partner with Apple TRUPHONE Unleash the power of the eSIM THALES Speaker Brief eSIM Summit Theatre 3 - Hall 7 (250 pax) Speaker Brief eSIM Summit Theatre 3 - Hall 7 (250 pax) Speaker Brief eSIM Summit Theatre 3 - Hall 7 (250 pax) THE INCONVENIENT TRUTH 6 years as an eSIM partner with Apple IT ALL STARTED WITH AN iPAD… 6 YEARS ON eSIM IS NOW AT THE HEART OF EVERY FLAGSHIP CONSUMER DEVICE HOWEVER, THE INDUSTRY IS STILL IN LOVE WITH A PIECE OF PLASTIC We are just as reliant on the SIM card today as we were 6 years ago. Replying to Hello, thanks for reaching out. Currently, we don’t support eSIM transfer yet. So you will need to buy a new eSIM from our store. :) Hope this helps. bk Replying to It’s definitely on the cards this year - our tech peeps haven’t finalised a date but as soon as we do we’ll let you know! LJ AND WE ARE HOLDING CUSTOMERS BACK… Replying to Replying to Following a sucessful trial in a small number of retail stores, we’re pleased to tell you that we will be launching eSIM in 2022. We don’t have a date right now, but rest assured we’ll inform you when this is available for both consumer and buisness customers. -Iain Please note we currently support eSIM for cellular capable, wearable devices only. Please view more here: …AND WHAT’S THE HOLD UP? eSIM WILL DESTROY ROAMING REVENUES “ “ NOT ENOUGH DEVICES SUPPORT eSIM eSIM WILL BE AVAILABLE JUST AFTER OUR DIGITAL TRANSFORMATION IS COMPLETED OEM’S WILL BECOME THE GATEKEEPER BETWEEN OUR NETWORK AND THE CUSTOMER THE MAGPIE THE BULL WHERE DO YOU SIT? THE OSTRICH THE GOAT THE INCONVIENT TRUTH IS: THE SIM SLOT DISAPPEAR WILL Image source: Evosmart.it WE BELIEVE IN THE eSIM PROMISE Smaller, efficient and faster devices Simple logistics and reduced distribution costs Choice and flexibility for customers eSIM IS SAVING MONEY eSIM IS ENABLING NEW EXPERIENCES eSIM IS MAKING THINGS EASIER And we are at the forefront of this acceleration 0 TO 18M eSIM ACTIVATIONS IN 3 YEARS 14-Mar-22 eSIM IS ON 58 THE WORLD’s most complete eSIM solution Business and IoT solutions Entitlements RSP Consumer apps SIM OS Connect API Bootstrap Truphone Limited. All Rights Reserved. Visit us at Stand 5A32, Hall 5 14-Mar- 60 22 Speaker Brief eSIM Summit Theatre 3 - Hall 7 (250 pax) This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. Unleash the power of eSIM eSIM summit at MWC 22 MWC eSIM summit - March 2022 www.thalesgroup.com 62 OPEN This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. Multiple devices types need connectivity 63 CONSUMER ELECTRONICS Secure MWC eSIM summit - March 2022 Consumer IoT Industrial IoT Miniaturized OPEN Robust M2M Digital This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. The IoT market needs 64 Design constraints MWC eSIM summit - March 2022 Services Miniaturization Scalable Low power consumption Cost effective Out-of-the-box cellular connectivity Secure Device & Connectivity management OPEN This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. IoT dilemma: How to boost cellular connectivity for IoT devices? 65 GSMA M2M GSMA Consumer MWC eSIM summit - March 2022 GSMA M2M M2MM2M Offers fleet management Deployment can be seen as complex GSMA Consumer Consumer Simple deployment Needs an End-user consent No fleet management OPEN This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. IoT dilemma: How to boost cellular connectivity for IoT devices? 66 GSMA M2M GSMA M2M M2MM2M Offers fleet management Deployment can be seen as complex Thales for IoT Thales IoT Services GSMA Consumer MWC eSIM summit - March 2022 IoT Relies on the Consumer eSIM ecosystem (SM-DP+) Leverages on the best of the two models Consumer & M2M GSMA Consumer Consumer Simple deployment Needs an End-user consent No fleet management OPEN Thales Instant Connect Bootstrap connectivity for eSIM localization available in 186 countries with 383 roaming partners No connectivity Bootstrap Final Subscription Ease manufacturing - no bootstrap injection Reduce connectivity costs - Less bootstrap IMSIs needed Keep logistics simple - single SKU Ease supply chain -Bind device and subscription later 67 Turn Device On Instant Connect eSIM Localization End-user turns on device Automatically injects a temporary bootstrap End-user downloads the final subscription MWC eSIM summit - March 2022 Compatible with GSMA Thales Instant Connect Bootstrap connectivity for eSIM localization available in 186 countries with 383 roaming partners No connectivity Final Subscription Ease manufacturing - no bootstrap injection Reduce connectivity costs - Less bootstrap IMSIs needed Keep logistics simple - single SKU Bootstrap 68 Ease supply chain -Bind device and subscription later Turn Device On Instant Connect eSIM Localization End-user turns on device Automatically injects a temporary bootstrap End-user downloads the final subscription MWC eSIM summit - March 2022 Compatible with GSMA Thales Instant Connect Bootstrap connectivity for eSIM localization available in 186 countries with 383 roaming partners No connectivity Ease manufacturing - no bootstrap injection Reduce connectivity costs - Less bootstrap IMSIs needed Keep logistics simple - single SKU 69 Bootstrap Final Bootstrap Subscription Turn Device On Instant Connect eSIM Localization End-user turns on device Automatically injects a temporary bootstrap End-user downloads the final subscription MWC eSIM summit - March 2022 Ease supply chain -Bind device and subscription later Compatible with GSMA This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. “MAKE THE IoT CONNECTED WORLD A PLACE WE CAN ALL TRUST” 70 eSIM / iSIM Smartcard software packaged to be embedded into devices at manufacturing time eSIM Cloud Platform Service to MNOs, OEMs and SPs to remotely distribute and manage cellular subscriptions Thales Adaptive Connect A connectivity management service to allow enterprises to manage their IoT devices Thales Instant Connect Bootstrap connectivity to enable eSIM localization Join us at MWC Barcelona 2022 28 February - 3 March 2022 | Hall 2 - Stand 2J30 MWC eSIM summit - March 2022 OPEN This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. “Thank you 71 MWC eSIM summit - March 2022 ” OPEN www.thalesgroup.com This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. Trusted Digital Telco Unleash the power of eSIM to launch your digital-first brand eSIM summit at MWC 22 MWC eSIM summit - March 2022 www.thalesgroup.com 72 OPEN This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. A Bigger Digital Transformation for Telco 73 Digitization Empower customers by providing a full service mobile app Uberization New Segments Disruption Source: Capgemni Digital Operator Observatory Resilience MWC eSIM summit - March 2022 Go cloud-native Get rid of legacy IT to reduce Stack and adopt deployment time a greenfield & cost-to-acquire and cost-to-serve approach OPEN This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. Anywhere, Anytime, in a Snap ! 74 I order in 4 clicks eKYC Thales & triPica assembled best of breed technologies to create: Trusted Digital Telco, « A telco-in-an-App experience » I scan my documents I get all my answers online digital BSS MWC eSIM summit - March 2022 A 100% Digital and Simple Customer Experience OPEN This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. Customer Empowered to Build, Enroll and Manage His/Her Services 75 eSIM or SIM Card SCAN Define Be Enrolled / Buy Start Using Your Service Prove ID Take a selfie and scan the relevant identification document SIM/eSIM card For eSIM enabled devices the activation is done in instants after enrollment Build your plan Pay Scan your Banking Card and authorize payment MWC eSIM summit - March 2022 Digital BSS Agent Tool: CRM AnalyticsOPEN : BI & Reporting Make changes at any time selfcare/support This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. One Step Ahead of the Disruptors 76 Implement your Digital Brand in MWC eSIM summit - March 2022 4 Months Give the tool to your Marketers to launch a marketing offer in 48h Enroll a new customer in less than 7mn OPEN This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part or disclosed to a third party without the prior written consent of THALES - © 2021 THALES. All rights reserved. “Thank you 77 MWC eSIM summit - March 2022 ” OPEN www.thalesgroup.com Closing session eSIM Summit: eSIM Adoption and Global Market Trends GSMA eSIM Consumer GSMA eSIM M2M GSMA eSIM Service SCAN ME SCAN ME SCAN ME THANK YOU eSIM Summit: eSIM Adoption and Global Market Trends