esim Covering the Last Mile to Internetbased
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1 esim Covering the Last Mile to Internetbased Telecom Services Zhang Yunyong, China Unicom Research Institute
2 SIM is Fundamental,but the Media is Evolving SIM card is the cornerstone of secure mobile communication and Internet services. It carries mobile industry from 2G to 4G, but no longer fits the era of Internet of Everything. Internet 2G 3G 4G Mobile Data Total Connections (Include IoT) 8.57 Billion Unique Subscribers 5.08 Billion Source: GSMA, Jun million Era of Internet of Everything Mass Devices Differentiated Applications Intelligent Demands Source: Gartner Ovum M2M Connections CAGR 36% Connection of People CAGR 2.7%
3 esim:driving the Evolution of Telecom Services Openness Intelligence User-experience Security Digitalized Procedure Leads Internet-based Services Beyond embedded SIM, BUT electronic Services Good for cellphones and IoT devices; Dynamic loading through OTA; Free replacement of SIM cards. Online Self-service Contracting Global Service Customized Pricing for Different Device Internet service upon Start Intelligent Management of Connections
4 Controversies over esim Different demands on esim Operators 'Concerns Demand MNO OEM Customer Space О Lifetime of Product Remote Update Crossborder Coverage Ecofriendly О OTA on first use Shifting between operators during usage Cross-border sales of products Х О О О Cross-border use of devices О О Operator s global services О О No operator involvement in production Х О Reform in business model Х Losing customer stickiness? Drifting apart from customers? Overthrow of current business model?
5 Fast Growing esim Industry Industry Chain Supported MNO CA UpStream Card Chip Manufacturer SoC Manufacturer System & Service Provider esim System Device Manufacturer EUM MNO OEM Customer Cosumer Enterprise Source: GSMA
6 M2M:Early Application BUT Slow Promotion GSMA SGP.02 Global SIM Business Model Auto Manufacturer Telematics Commercial Launch Tier 1 MNO X Tier 2 MNO Y Tier 2 MNO Z Auto Customer R&D Stage X SIM Y SIM Z SIM Tier1 MNO Tier2 MNO NB-IoT/eMTC Quartet Business Relationship Country A Country B Country C
7 Consumer IoT:Ready for Proliferation GSMA SGP.22(RSP) esim isimportant for devices management, but should be invisible to user. Commercial Use Smart Watch Other Products Coming Soon Laptop Tracker Bracelet Smart Home MiFi Connection Cloud
8 Cellphone:Will not be the Exclusion OEM MNO Proprietary Solution GSMA Solution Under R&D Stage Shipped: >100M Pixel 2 / Pixel 2 XL
9 esim Standard Remains to be Developed Un-unified Standards Issue of Openness Lagged behind Application Solutions Lacking Diversity in Hardware Vectors SGP.02 SGP.22 SGP.02 is not an open structure Non-standard solutions in all SGP.22 cases euicc does not fit all devices
10 Customer First. Openness, Cooperation & Innovation Standard Embracing & Open Transform and Reform Cover the last mile with esim, realizing system restructure & process optimizing Security Boundaries& Responsibiliti es Integrated standard API based on RSP Reduce limitation on Applications Support more hardware vectors Internet-based Services Set clear boundaries for openness Clarify security responsibility Strengthen esim management
11 Practice of China Unicom Build esim Ecosystem. Launch esim Open Enabler Platform. Promote esim Industry Growth Building IT System Capability Innovative Service Solutions Support and Drive esim Ecosystem Independent development of esim service system& restructuring of IT system esim Consumer IoT Solution High security, intelligence & onestrop provisioning Initiated esim industry alliance & built esim developer service community esim Server Open core func CA esim Server Core Network Back End Front End Developer OEM esim Device euicc LPA APP M2M Solution Cellphone Solution Developer Site Document,SDK esim Test Env. Platform,Resource esim Factory Env. Manufacture Support esim+it+network Covers multiple application scenarios One-stop Technical Support
12 China Unicom to Transform Together with esim China Unicom:introduced new DNA from leading Internet companies, improved corporate governance mechanism, and accelerated Internet-based new operation. Focus Data services company based on network operation New Manage ment New Driving Force New operation New Ecosy stem New DNA
13 Jointly Build a New Foundation & Create New Value To Be a Promoter for Digital China
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