 I'm George Malin, the managing editor of IoT Now and welcome to today's webinar, the topic of which is how eSIM is forging a new future in IoT for the 2020s. eSIM has been gathering traction for the last few years, with lots of attention focused on the consumer market. However, there's an enormous opportunity in the enterprise and IoT market places that is starting to be engaged with by organizations of all types. The omens are an analyst firm seen positive. Juniper Research, for example, has reported that a doctrine of eSIMs will grow by 350% over the next five years to exceed 1 billion eSIMs globally by 2024. Firm also projects that the total number of IoT connections will reach 83 billion by 2024. That's riding from 35 billion connections this year. Another firm, Counterpoint Research, has estimated that shipment of eSIM-based devices will reach almost 2 billion units by 2025 and that's up from 364 million in 2018. So it's clear there's good traction starting to appear and this makes now an ideal time to assess what the future looks like for eSIMs over the coming decade. To assist us in that, I'm delighted to welcome speakers from three companies, ST Truephone and Digi-Key Electronics. They're going to discuss the key trends that are influencing this drive towards eSIM-enabled solutions, why it's happening now and the different environments and use cases that are influencing this change. I should also point out that the speakers will be staying on after their presentations to take questions from the audience. To participate, simply enter your question into the panel on your screen and opposite to them later. Now to set the scene, let's turn to the first of today's audience polls. This one is about IoT solutions adoption and the question is how far are you currently on your IoT project journey and the three possible responses are this is my first IoT solution or project, the second possibility is we've done a few projects and third possibility is this is central to our business strategy for the future and I'll just give that a few minutes to settle down with voting. I think I'll read the question response again. How far are you currently on your IoT project and the possible responses are this is my first IoT solution or project, the second possibility is we've done a few projects and the third is it's a central part of our business strategy. I think the voting has probably settled down and it looks like a narrow lead of about 37 percent for those that have done a few projects and followed closely by people who have just trialled in the first project and those who were at the other extreme. That's very interesting. Let's turn and welcome Tom Mason from TruFo. Tom, was that what you expected to see? Yes, good morning. Yeah, actually going through the numbers that is it's barely in line with what we've been seeing as we're working with customers and assessing the marketplace around 40 percent or so there's that cross between customers and companies who are considering IoT and putting that in their roadmap or those that have already deployed and are rolled out so these numbers are very much in line with what we see in the marketplace with huge growth potential coming so it's very good. Great, thank you Tom. Let's turn over to you to start the session and yeah you have the floor down Tom, thanks very much. Terrific, all right so good morning. Before we introduce ourselves, why are we here as yours was starting to explain in a very interesting poll we'll see how that changes throughout the call and post. We are at a really interesting and exciting inflection point when it comes to eSIM adoption in consumer enterprise and IoT devices. The momentum for eSIM is clearly accelerating with smartphones, smartwatches and connected cars leading the way and now we're seeing new use cases emerging enabled by eSIM across every single vertical in business. A new handset with eSIM support hits the market every month and there's growing demand among the IoT device manufacturers exploring eSIM to future proof their devices. We are seeing huge growth in the markets but there's a lot more to come as you see. One billion eSIM enabled devices are expected to ship annually by the year 2023. Today we'll explore the opportunities of eSIM with a focus on IoT. IoT has long been seen as a promising area for eSIM however adoption has been low relative to the long-term potential. Over 40% of companies today believe eSIM is critical to achieve success in their current and future deployments. This means there is already a very large and growing business opportunity out there. How do we capture and support these opportunities? How do we help customers successfully scale? Security is critical. How do we help you manage costs of your deployments? I'm very proud to introduce our unique partnership of DigiKey, ST Microelectronics and TruPhone. ST TruPhone and DigiKey have come together to deliver a comprehensive flexible end-to-end solution for businesses of all sizes. Together we bring a wealth of IoT capability and experience the businesses like yours looking to deploy at scale and speed taking advantage of eSIM and all the latest IoT devices and applications. My name is Tom Mason. It's funny to talk and not introduce ourselves right ahead of time but Tom Mason I'm vice president of sales and business development at TruPhone. TruPhone, a little bit about TruPhone, we were founded in 2006 and since then we have built and developed state-of-the-art SIEM software with our own multi-IMSI applets, an intuitive SIEM management platform and a powerful global connectivity network. Today we have over four million eSIMs provisioned. There are 15,000 eSIMs downloaded every single day. We have two GSMA accredited RSP data centers globally and we operate nine NBNO's scattered around the world giving us a very unique global perspective. We were the first company to launch an eSIM app on Apple iOS to provide them with global connectivity. We have over 3,500 corporate customers including 10 of the world's top 12 banks. Our headquarters are in London. Our technical and engineering team is based in Lisbon, Portugal. We have 16 offices across four continents and continue to expand globally with our eSIM and connectivity services. Jenny? Hi everyone. So I'm Denis Dubois. I am product marketing manager for SIEM microelectronics in the Secure Microcontroller division. I'm in charge of SIEM and embedded SIEM solution for the M2M IoT industrial and automotive market and today we are really pleased to join Trufon and DigiCiv to introduce this eSIM solution. Hello everyone. My name is Robbie Paul. I'm the director of business development for IoT here at DigiCiv Electronics. The IoT initiative is a little bit different at DigiCiv and that we're more focused on systems and solutions. Traditionally, DigiCiv Electronics is known for selling components and board level products. With our IoT focus, we want to build on that legacy and partner with great companies like Trufon and SIEM micro to bring more integrated solutions to our customers. I'm thrilled to be here today to talk about our latest partnership and end-to-end solution in cellular connectivity. So let's jump right into it. Traditional SIEM cards are everywhere. They're great at enabling connectivity but are a bit cumbersome to integrate into IoT products. SIEM cards have an efficiency impact in all phases of deployment including production, enabling, distribution, and ongoing maintenance. They add manufacturing complexity and make automation more challenging. Since network operators are regional, or in many cases national, creating products that work globally out of the box is challenging. The time to market is also extended due to a complex rollout and the need for regional forecasting. All of these issues are magnified when logistics and distribution partners are brought in. We have to maintain hundreds of SKUs. Scaling up and down to meet customer demand is very challenging. Frankly, this is one of the main reasons Digi-Key electronics has stayed away from this market now. Ongoing maintenance is not any easier. Imagine you had hundreds of thousands of IoT devices deployed and you wanted to change network operators. What a tedious and expensive process that would be to manually swap out SIM cards in the field. An eSIM or embedded SIM aims to change all that. A quick point of clarification. You may have heard the term EUICC. How similar or different is this from an eSIM? I think about it as hardware versus software. eSIM is the hardware, the physical chip that is soldered onto the PC board. EUICC is a software in the SIM that enables the user to switch network operators or carriers. Note that EUICC is a technology that is available for both removable SIM cards as well as eSIM. What is so great about an eSIM? For starters, an eSIM is remotely programmable. Imagine being able to send an over-the-air OTA update to an IoT device that is already in the field and be able to change network operators. But fundamentally what that does is it switches the ownership from the network operator to the customer. Furthermore, it is controlled by the user. The user selects the carrier and the data plan and can change numbers at will. An eSIM works worldwide since there are multiple profiles programmed into the eSIM right out of the box. When you first light up an eSIM, it looks for the best network operator in that particular area or geography. This gives the power of choice back to the customer and the end-users. This is a key point. Now, there are many new entrants and new services disrupting connectivity. I think all of this competition is really good for the market, especially an emerging one like cellular connectivity for IoT. SIM vendors that are becoming service providers and the number of MVNOs are proliferating. This transformation is also enabling OEMs to add value by designing products that are truly global with fewer SKUs. This ultimately helps distributors like DigiElectronics to keep fewer parts in stock. All of this increases efficiency and reduces cost across the whole value chain. And this ultimately brings the cost down for all customers and end-users. Now, embedded SIMs are not entirely no. The automotive market has been using eSIMs primarily because of their high reliability requirements. As you know, cars and trucks operate in harsh environments with temperature fluctuations and extreme vibration. This use case is perfect for soldered-in-place eSIMs. As Tom mentioned, consumer devices were jump-started with eSIM usage by Apple a few years ago. All the latest iPhones and iPads are equipped with dual SIMs, one that's soldered on and the other one removable. Now, I see the advantage of the eSIMs in these primary markets feeding other adjacent markets like variables, industrial, medical, and home automation. Big asset tracking applications, for example, the eSIM can be used to register the asset tracker on multiple operators, thus greatly simplifying international roaming. Now, even with the benefits and simplicity that eSIMs provide, partnerships are still the best path to success. So DigiKey has teamed up with TruPhone and SD Micro. We each bring out strengths in hardware, the software platform, and eCommerce. In this partnership, we can provide an end-to-end solution and cellular connectivity that will accelerate global IoT products and worldwide deployments. Now, I'd like to pass the baton back to Tom from TruPhone. Tom, take it away. All right, thanks, Robbie. Great stuff. Imagine taking a device with our secure embedded SIM, connecting that device to a mobile network anywhere in the world straight out of the box. TruPhone is the only digital cellular connectivity provider that has developed and operates our own GSM-A compliant eSIM with remote SIM provisioning and rides on a global mobile core network. TruPhone, DigiKey, and ST are offering a single global solution for IoT deployments by bringing together technologies that have traditionally only been available from many multiple siloed vendors. The result we have is a seamless integration and a single DNA for all key aspects of your IoT device solution. Making it a future-proof solution, having eSIM as the standard and all the benefits of remote SIM provisioning. We have a secure single core network, and this is essential, as you will be roaming in 400-plus networks around the world, giving you access to a connectivity management platform where you can manage your deployment across the world, supporting your customers, and all your machines. TruPhone, DigiKey, and ST is the only bundle provider that has developed and operates its own GSM-A compliant eSIM, RSP, and global mobile network. This means we are not reliant on third parties, enabling us to offer a secure, flexible, and independent service, and enabling you to harness the potential of all the emerging technologies. The fantastic growth we have seen and saw in 2019 is the culmination of years of investment and expertise in eSIM technology, making us the go-to provider for operators, OEMs, and IoT enterprises seeking partial or complete eSIM support. Our partnership with Apple that we've mentioned meant that TruPhone had an app-based consumer eSIM solution providing global connectivity ready when the iPhone handsets were launched. Our work with a major Android-based OEM means we also have the same service available on Android. We've mentioned a couple times working off of the IoT managed platform. The platform allows customers like yourselves to manage their connectivity services provided by TruPhone, DigiKey, and ST. The platform controls the full life cycle of connectivity subscriptions, devices, and your SIM cards. This enables you to reduce your time to market and quickly capitalize on the new M2M IoT-related revenues out there. Our portal and vast library of APIs allows you to monitor, manage, and analyze your SIM inventory and to automate the deployment and operation of your connected devices. Some key features to highlight give access to real-time information about your SIM cards. You can change your RAID plans, access your account invoices, suspend and unsuspend SIM cards for data, SMS, and other services and features. The display which device the SIM and the IMEI are currently working on can send SMSes from the platform to the SIM, authorized or not, data sessions, tear down ongoing data sessions, create usage reports and event rules, see all the historical data related to your device. The power of eSIM, the power of one, simple and secure IoT mobile connectivity at the touch of a button. Our global mobile network is designed from the ground up to scale the deployment of devices across the globe regardless of bandwidth, power, and scale specifics with one single predictable partner. It's a true single network for every one of your devices. The unique network design enables us to bring together our many MVNO and roaming access agreements into a single network to create a global footprint of the best carriers. The solution is totally transparent to the end user and changes can be made dynamically over the air. Again to mention we have our single core network which connects to the best local networks ensuring the highest quality and continuity for your IoT devices. We have new agreements added automatically to ensure availability of all the best rates and connectivity quality across the world. Our patented multi-MG technology to switch to the best network carriers is available in live. Multi-network access technologies on 2G, 3G, 4G, and LTM. We have NBIOT on the roadmap, global scale, and very low latency. With that I'd like to turn it over to Danny. Thanks Tom. Indeed a slunar connectivity solution increases network coverage and it brings this flexibility on the connectivity. In this way a device can always be connected to the network and finally the customer is able to manage and control all assets of his device everywhere and in real time. Actually it gave us the opportunity to create to define new use cases, new device. We can imagine that any device can be connected. So now I suggest that we focus on this device. Are we really able to connect everything? In fact it's easy to understand that an eSIM solution for a toy and an eSIM for a car have different requirements mainly because the environment is different. Let's review these differences. First of all how could we split this global M2M market? From our point of view we can identify three different groups. The first one is the IOT, the Internet of Sting. This group is not really impacted by the environment. It requires basic behavior with standard requirement. We can have this solution in a drone, in hotspot device, or a toy. The next one is industrial. This group is impacted by the environment. We need additional robustness. So we include a specific requirement with more stress test qualification. In this group you could find all smart metering, tracker, and industrial device. And the next one is the automotive. This one is strongly impacted by the environment. We need robustness and specific automotive qualification. So in this case we include a specific requirement for this domain. In this case in this domain you can use connectivity for entertainment, for the music, but also for safety application, for emergency call. Now based on this segmentation let me introduce to you the main difference between each group. Usually we identify a difference on reliability, lifetime, and the temperature range. Under reliability, the first specification, the M2M8C specification, define the basic requirement for the ECM for all machine to machine environment. It defines some parameters like moisture, humidity. This is basic. After you have the industrial specification with the GDEC in addition to this M2M8C specification, it includes additional stress tests to qualify a specific condition. Example we have some human body model qualification to protect against electrostatic discharge. And the last one on the automotive we have an ASQ100 qualification. This is a test qualification dedicated for the automotive. It defines different levels mainly related to the temperature range. Usually for the CIM level 2 is required. We will see right after what does it mean level 2. This qualification is based on the GDEC with additional constraints. Let me take another example. In industrial we compare the component state before and after the test at only 25 degrees. In this one we compare the state before and after at 25 and also to all extreme temperature. The next point is the device lifetime. Usually the ECM lifetime matches with the lifetime of the device. The minimum for the IoT is 10 years. It's defined by the EC. And after we increase this one in industrial and also for the automotive. The last one, last topic is the temperature. On IoT it's a standard temperature range, minus 25 degrees plus 85 degrees. This is a minimum temperature defined by the EC for the machine to machine. After you have industrial and the automotive require minus 40 plus 105 degrees. And this level 2 correspond to this temperature range. So as you can see the environment is really important and has an impact on the solution. Then are we really able to connect everything? Yes, we just have to take into account this requirement. There are also different levels of security, not directly impacted by the environment. Mainly we can identify three different levels. The first is a CMAN embedded SIM solution is a temper resistant security element. It's mean that by default the customer has a good security level. After based on this security element we can have also the common criteria certification to make sure that all assets I'll go crypto inside this solution are really secured. And finally we have the GSMS certification for all ECM solution. Based on common criteria this certification guarantees the security and also the interoperability of this solution. In the end you understand that because you have all these different requirement environment and on the security you could find different SIM and embedded SIM solution. For example with our ST4SIM product family we define three ST4SIM sub-family able to address these three different type of market. S for the IOT, M for industrial and A for the automotive. Each sub-family is compliant to the different hardware qualification and has different packages. On top of this hardware there is a wide range of SIM and embedded SIM solution from the legacy SIM card to the GSMM embedded SIM solution. And finally but not the list our partner TruFont provides the connectivity and the platform. It may seem difficult to understand all ECM ecosystem at first but in fact is really simple. In my last slide I will explain the ecosystem and who does what. On one side ST4SIM solution is the ECM solution with the connectivity profile provided by TruFont. The user can take this ST4SIM solution directly on DGKey website and then he can integrate this solution directly into its board or its device. On the other side TruFont provides the platform and as introduced by Tom thanks to this platform the user can activate and remotely manage all ST4SIM solutions on the field. Thank you. Thanks very much Denny that was an excellent session and also thanks to Robbie and Tom for your input. Let's conclude with the second poll which will be coming up on your screen now. Here's the poll. The question is what is the status of ECM related projects in your company and the potential responses are not considering ECM. Actively looking at ECM for a live project looking at ECM deployment in the next six months and already have deployed ECM and looking to further extend ECM deployment. I'll just let the voting settle down for a bit but it looks like the early running is looking at ECM deployment in the next six months or so which over 40% of the audience have selected. I think that's probably where the voting is going to conclude so very soon in terms of project deployment although obviously some are more mature with solutions already deployed that's about a quarter of respondents. So let's close the poll there and move on to the audience Q&A. We've had a lot of responses from the audience so I'm very grateful to you for that. The first question is to Denny and the question is how can I assess ECM versus ICM? Denny over to you. Okay thanks it's really a good question. First the embedded SIM solution and the integrated SIM solution are really two different solutions exactly like a SIM card and embedded SIM solution and from a point of view this is a different offer. As you might know the with integrated solution you don't have any more dedicated secure elements all SIM functionalities are directly integrated in the MCU usually a cellular modem and in fact several points on the integrated solution are still under discussion regarding the personalization process security certification. Several GSM groups are working on this integrated SIM. So I would like to say for now we see more demand on the embedded SIM solution. Great thanks Denny. Let's move on to the second question and this one will be for Robbie. Robbie please can you tell us about the availability of ECMs through electronics distributions channels such as Digikey? Oh absolutely yes it is available today on digikey.com and just for your reference let me flip back I think it was slide number eight that had the part number as well but easier than all of that just go to digikey.com and on the search bar just type in eSIM and the ST SIM card eSIM will come up as the first selection and we also have links to the Truphone activation portal right on digikey.com trying to bring all the elements together. Great that's really simplified it. Excellent let's move on to the next question this is a question from Tom. Tom how do we incorporate eSIM into wearables? Yeah great great question and also I was going to say in the poll that first option not considering eSIM I didn't think we'd have anyone say that so it's good great attendance and great great collaboration here thank you everyone. Yeah with wearables wearables are one of the best use cases for eSIM. We've already successfully rolled out eSIMs with several like the Apple Watch, the Samsung smartwatch, the management of the connectivity in wearables it's done just like any consumer device where the final the end customer can choose the best connectivity provider where they're located and what works best for them. Definitely due to the design and size of eSIM in the MFF2 or WL-SCP formats you'd use a SIM card would be used eSIM would be used it's no longer a blocker for the device size and all the functionalities for the carriers this also means the use of entitlement servers to manage the services and all these types of devices so wearables is an ideal use case for eSIM and we're seeing as we mentioned a couple times during the presentation we're seeing the adoption in wearables happening like crazy starting with Apple and the Samsung but going into the PERS mobile PERS all the different security verticals and tracking devices and so forth so really really great question and we're seeing that adoption rate accelerate like crazy. Great thank you Tom let's move on to another question this one will be for Denny the question is what BPM processes are involved in eSIM and what EUICC subscription management is required for IoT connectivity Denny over to you. Yeah so in fact our business model is really simple we want to provide the best solution and the best support to the customer so that's why I show in my slide one slide where you can find ST provide the ST for SIM solution directly to the customer through DGK website in this case we are able to support the customer to integrate the ST for SIM solution to the device okay this is our day-to-day job and on the other side we let the partner because they are experts on this on this point through phone provide the network connectivity and all platform services. Great thanks Denny we've got loads of questions coming in it's very very very responsive audience the next question is to Robbie Robbie the question is will eSIM devices be cost competitive with existing data SIM devices? I would say a most definite yes I mean it's a silicon-based device and the cost curve on integrated circuits you know is coming down year over year and I think cost parity will be achieved in the next year or so as production volumes increase but really the benefits to the user you know owning and being in control of the connectivity on their own devices I believe far outweigh any component cost differences that there may be so it's really about added features and functionality that's brought on by eSIM and EUICC I think that's the game changer especially in IoT. Yeah interesting great let's move on I think we've got time probably for one more question and this is a question to Tom. Tom how will large telcos react to increased eSIM adoption given the inherent conflict it put it prop it poses to their traditional businesses by lowering barriers to people switching out clients switching out switching operators once things are deployed. Yeah great great question as you saw in the in the first slides and we talked about the the growth in IoT with eSIM enabled devices will be in the billions and as this world is is evolving and growing and revolutionizing the mobile carriers need to read they really need to rethink their business models in order to survive this global adoption of IoT. Carriers they need to target OEMs and IoT enablers to sell mobile data by bringing a new flavor of the B2B model to their existing B2C modeling the ability to switch between carriers well I mean this helps negotiate better rates and improve services for all the end users so this will help the carriers to bring innovative ways of keeping and building the trust of their existing base of customers and it creates you know real positive competition across the carriers so you know the telcos and the M&Os they must evolve and get on the train or it'll pass them by. Great thank you Tom I think actually Freud can squeeze one more question and we've had so many questions come in so you know that's that's great what what I will say is after the session DigiKeyTrue phone and ST are going to collaborate to come up with a kind of frequently asked questions sheet so we can answer some of the many questions that come in after the live event but let's take this as the final question this is a question I think that Denny's best place to answer the question is what certification processes are involved before going to markets so Denny over to you on that one. Yeah so if I take the ECM GSM the GSM association define a specific certification process a security process with a dedicated protection profile to guarantee two things one is about the security because inside the embedded team we have the credential from the M&O so for sure we have to guarantee the security of this access so and on the other side we have functionality tests and with both security and functionality we have the certification stamp from GSMA just to guarantee this this one is interoperable and we can we can download a profile on this on this one. Great thank you sorry Denny. And by the way you are able to see the certification under the global platform website. That's great to get that resource we've reached the point where we're going to have to end today's session I'm afraid but many thanks to Denny Dubois from ST Robbie Paul from DigiGee and Thomas Mason from TrueHome. As I said just now we're going to collate responses to some of the questions that we've come in there's been requests for information and specific questions that come in from multiple different people but so we're going to be able to package that up into a into an FAQ for all the attendees so that will be very useful but I'm very grateful to the audience for your attendance and all the great questions we've received today and of course to the panel for for their answers to them that we've had just now. We look forward to welcoming you to another IoT webinar again soon and thanks again and goodbye.