eSIM (Embedded SIM) Electronic SIM Card

SIM card

Main article SIM card Subscriber identification module

eSIM technology

The standard Mini and Micro-sim function as a unique identifier that allows the subscriber to register with the operator's networks. Take advantage of new tariffs, save on roaming, change the operator - functions that require buying and installing a new piece of plastic in the gadget^[1].

At the same time, the SIM card is capable of opening access to the Network in electronic format. Receiving remotely information, the user downloads the settings of a particular operator to the SIM card built into his phone. First of all, remote identification technologies will affect the organization of the process of selling a SIM card: the subscriber will not need to come to the operator's office, the registration and connection procedure will take place via the Internet. Over time, this will inevitably lead to a significant reduction in retail.

For mobile operators, the introduction of eSIM will simplify interaction with subscribers and increase access to communication services. However, replacing a physical plastic card with an electronic card will facilitate the user and the procedure for changing the operator. It will be possible to switch to a profitable competitor tariff without leaving home. Therefore, mobile operators will be more attentive to their customers and try to keep them in their base even more.

The introduction of eSIM in the world will also change the consumption model of communication services in roaming. Subscribers purchasing a SIM card in the host country will be able to remotely connect to the local operator. The tourist will not have to look for sales offices on the map or express himself in an unfamiliar language to buy. It is enough to scan the QR code or make a couple of clicks.

In general, remote identification technologies will cost less. Operators will not have to spend money on the manufacture of SIM cards, the cost of which can range from 60 rubles, depending on the size, capabilities of the chip, type of networks. In Russia alone, about 100 million SIM cards are sold per year. The economic effect will be tangible, not to mention the environmental component, when the world gets rid of a mass of unnecessary plastic.

Virtual SIM cards will also provide subscribers with new features that simplify the use of operator communication services. Connecting to an operator or changing a failed card still requires a trip to the office. In addition, after the subscriber, there is not the most pleasant procedure for installing a SIM card into the gadget.

The electronic SIM card eliminates the need for any movements and visits to the operator, and in terms of reliability it is an order of magnitude superior to its physical analogue, which can fail or be damaged at the time of installation into the device. There is no difference between using eSIM and a physical card. Even in the smartphone menu, the display will be similar. But it is more difficult to hack and fake virtual cards. A chip replacing a regular SIM card is placed inside the device at the assembly stage. When installing or changing an electronic card, the subscriber will have to contact the operator, who will see the entire "history" of the device. Thus, remote identification technologies will provide the state with closer control over the use of stolen and "gray" mobile phones illegally imported into the country.

2024: In Russia, using eSIM, they began to "steal" phone numbers from ordinary SIM cards

On March 14, 2024, F.A.C.C.T. (formerly Group-IB in Russia) announced the identification of a new scheme for stealing mobile numbers from Russian users to gain access to their online banking. Attackers have learned to "steal" phone numbers using eSIM - a built-in SIM card.

To gain unauthorized access to a mobile number, cybercriminals use the function of replacing or restoring a digital SIM card: they transfer the phone number from the victim's regular SIM card to their own device with an eSIM. To intercept a number using eSIM profiles, fraudsters need a smartphone that supports connecting an eSIM profile, a compromised victim account in the personal account of a telecom operator and/or in a popular government service.

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Having gained access to the victim's mobile phone number, attackers can intercept access codes, as well as passwords two-factor authentications to various services, including, etc banks messengers. This opens up a lot of opportunities for the implementation of criminal schemes and theft of money.

To obtain a QR code or an SM-DP + address activation code, which in eSIM is responsible for generating and protecting profiles, attackers themselves create an application on the website or in the operator's application for transferring a number from a physical card to an eSIM. If the process is successfully completed, the victim is deprived of the opportunity to use his SIM card and loses access to the number.

An attack of this type also allows scammers to compromise accounts in the messengers of the number owner. As a result, attackers are able to send messages to the victim's contact list - for example, with a request to borrow money. The abundance of artificial intelligence tools and the presence of media content in the victim's correspondence help fraudsters mislead gullible users.^[2]

2023

The number of IoT devices with eSIM in the world exceeded 1 billion

At the end of 2023, the number of IoT devices with support for eSIM technology (built-in SIM card) on a global scale exceeded 1 billion. The main application of such products is remote monitoring systems, as stated in the study by Omdia, the results of which were presented on February 14, 2024. Read more here.

Russians for 3 years connected 3 million eSIM. Why the demand for such SIM cards has revived sharply

From the moment of the official launch of eSIM RUSSIAN FEDERATION in 2019 to July 2023, Russians connected about 3 million such SIM-cards, a third of which (1 million pieces) fell on the 12-month period July 2022 - July 2023. Such data "" Sheets were cited on August 24, 2023, citing sources in the telecom.

According to them, a sharp revival of interest in eSIM technology is associated with a compromise between law enforcement agencies, the Ministry of Digital Development and telecom operators, who were allowed to use remote registration of SIM-cards and confirm the identity of the subscriber on Public services and through Goskliuk. By August 2023, the total number of SIM cards of the Big Four telecom operators - Tele2, Beeline, Megafon, MTS - is, according to the companies themselves, 255 million (14% of them are Internet of Things devices).

For 4 years, Russians connected 3 million eSIM

Activation of SIM cards through government services facilitates the way for the client, because it translates connections into a convenient remote format, Tele2 explained. The technology is in demand precisely for remote connection, the representative of "" confirmed.MegaFon

The press service of the Megafon mobile operator told TASS at the end of August 2023 that they have not yet observed a significant change in the dynamics of eSIM connections after the introduction of identification through Goskey, and communication salons are still the main and most prevalent way to obtain a virtual SIM card.

At the same time, the technology is designed to be in demand precisely for remote connection due to the lack of a plastic carrier. Therefore, we believe that the methods for remotely connecting e-sim need to be developed or, at a minimum, made the same as for ordinary SIM-cards, the cellular company added.

In the Russian market, eSIM support is provided mainly by, and Apple Google. Samsung According to Skoltech internet of things Alexander Sivolobov, deputy head of the NTI Competence Center based on "" wireless communication technologies, this technology is rare in Chinese smartphones - most often in premium models.^[3]

The Russian government has started creating a Russian analogue of eSIM

At the end of March 2023, it became known about the work on the creation of a platform in Russia, which will allow connecting SIM cards (eSIM) built into the device to domestic operators. The project was taken up by the Ministry of Digital Development together with the Research Institute of Radio (NIIR) and the FSB. The ministry confirmed to Izvestia that a pilot zone will be deployed on the territory of the NIIR to test the technology.

Elements are Russian developments. We are talking about hardware and software complexes, a national root certification center and a cryptographic information protection system. Domestic equipment will be tested on the platform (first of all, various sensors, meters, tablets, etc.). Either our eSIM chips or foreign ones that meet our information security specification can be built into it, "the Ministry of Digital Development said.

Domestic sensors, meters, tablets and other equipment will also be tested on the platform launched on the territory of NIIR. Russian telecom operators will be able to connect to the project.

The Russian system provides, among other things, the connection of new virtual SIM cards to cellular networks, a source in the communications market told the newspaper. He explained that by March 2023, foreign software is used for this, to which developers can revoke certificates under pressure from restrictions or on their own initiative.

One of the market participants doubted that the Russian system would be able to be deployed until 2025-2027. He explained his skepticism by the lack of Russian communication and subscriber equipment and the state of the production base.

Most Russian subscribers still use devices with a physical SIM card: some duplicate eSIM, some do not, says Yuri Fedyukin, managing partner of Enterprise Legal Solutions. Obviously, the inability to connect a number via eSIM is not the biggest hypothetical problem for users, the lawyer argues.^[4]

2022

A service for the distribution of travel virtual SIM cards has been launched in Russia

A service has been launched in Russia that provides tourists with easy access to mobile Internet from world operators. This became known on July 1, 2022. Read more here.

By the end of 2025, a quarter of all IoT devices in the Russian Federation will be connected via eSIM

On July 5, 2022, MTS PJSC shared the results of the IoT market research and identified the trends and industries that will most actively use the Internet of Things in the next three years. According to the MTS forecast, by the end of 2025, about 25% of all IoT devices in Russia will be connected through eSIM, by the end of 2022 this share will be only 7%. Read more here.

2021

Global electronic SIM card market up 9%

In 2021, the volume of deliveries of digital SIM-cards increased by 9% compared to 2020 and reached 337 million units. Such data were published in early April 2022 by analysts from the Trusted Connectivity Alliance. It data follows that the number of profile transactions eSIM increased by 54% due to the large functionality of the technology.

The increase in the volume of eSIM implementation in 2021 was provided by a well-developed global infrastructure, which as of April 2022 is widely and increasingly actively used by all major operators of the first and second level. Members of the Trusted Connectivity Alliance (TCA) have seen significant investment in eSIM Subscription Manager (SM) platforms that provide remote provision and eSIM lifecycle management. Building on this investment, operators are now increasingly activating and managing eSIM to authenticate and connect customers.

Global electronic SIM card market grew by 9% over the year

{{quote 'Despite considerable uncertainty, the latest TCA data clearly shows that market demand for both eSIM-enabled devices and functionality continues to grow. As the market gains momentum and evolves, facilitating the adoption of secure, scalable, and compatible eSIMs that meet user requirements spanning the connected ecosystem remains a strategic priority for TCA. We will continue to work closely with key industry stakeholders to develop and promote favorable specifications and initiatives that support reliable connectivity, "said Trusted Connectivity Alliance Chairman Klaus Dietze. }} The growth in eSIM deliveries was mainly due to the use in the automotive industry and in the Internet of Things (IoT). TCA members reported a 38% increase in eSIM deliveries for machine-to-machine (M2M), which indicates an acceleration in cellular adoption in various areas of IoT use. The consumer market segment also saw a steady growth in technology, but supply volumes were restrained by the impact of economic sanctions and broader geopolitical trends on the global market, as well as the delay in the release of devices.^[5]

Start of sales of virtual SIM cards for trips abroad to the Russian Federation

In early October 2021, virtual SIM cards for travel abroad began to be sold in Russia. Such a service was launched by the Russian company Telwel in cooperation with the British telecom operator Truphone. Read more here.

In Russia, you can now issue electronic SIM cards through face and voice recognition

From June 1, 2021, it became possible in Russia to issue electronic SIM cards through face and voice recognition. We are talking about connecting eSIM with identification through the Unified Biometric System. The first such service was offered by the mobile operator Tele2.

For remote conclusion of the contract, the client needs to have a confirmed account on the public services portal and registration in the Unified Biometric System. The device with eSIM support should have My Tele2 and Biometrics applications from Rostelecom installed.

In the Russian Federation, you can now issue electronic SIM cards through face and voice recognition

To activate the card, the new subscriber needs to go to the "My Tele2" application and select the "Become a Tele2 subscriber" option, then - eSIM. Then the application will invite the client to connect the optimal tariff plan and phone number for him. The current subscriber selects the item "Order SIM" in the application, the phone number, tariff and card type - eSIM.

After that, the menu will invite the client to pass identification in the Unified Biometric System. The user must agree to the provision of passport data from the ESIA after a seamless transition to the Public services portal, and this information will automatically be registered in the communication service agreement.

If you have registration in the Unified Biometric System, confirmation of identity through the Biometrics application takes place in a few seconds: the user only needs to point the camera at himself and pronounce a combination of numbers indicated on the screen. A copy of the contract is sent to the subscriber by e-mail. After that, the "My Tele2" application downloads the eSIM profile to the subscriber's device. All registration will take a few minutes.

On June 1, 2021, a law came into force securing remote identification using the Unified Biometric System as one of the ways to remotely conclude agreements on the provision of communication services.^[6]

They plan to create a state platform for eSIM in Russia

On January 12, 2021, it became about the proposal of the Central Research Institute of Communications (TsNIIS, part of Rossvyaz) to create a single platform for remote loading and storage of eSIM subscriber profiles with support for domestic cryptography.

According to Kommersant, there is no legislative regulation of the use of eSIM in Russia. Domestic mobile operators use various solutions for storing virtual SIM-card profiles, including foreign ones. TsNIIS, which is responsible for maintaining a database of transferred mobile numbers, proposes to create a single platform at the expense of the budget, which will be managed independently.

For eSIM in the Russian Federation are going to create a state platform

The Ministry of Digital Development told the publication that the department has a positive attitude towards the creation of such a data storage system, but stressed that the contractor for such a project needs to be determined using an open competition.

The creation of the TsNIIS platform, according to one of Kommersant's interlocutors familiar with the situation, is, in principle, supposed to be financed from the state budget, but the specific source of funds is not specified in the concept itself. This means that there is a risk that the costs can be passed on to telecom operators and, as a result, to subscribers, he warns.

VimpelCom In "," they believe that the creation of a centralized base will lead to the monopolization of the market, so it is better to use different suppliers. MTS They agree: distributed storage is the most secure.

Denis Gudtsov, senior consultant on operator solutions at Jet Infosystems, believes that the system will help track, control and protect profiles, and nothing will change for operators - even without this, they do not independently serve eSIM subscribers. Therefore, for them, TsNIIS, in fact, will act simply as a new supplier of SIM-cards, the expert added.^[7]

2020

SberMobile launched eSIM in the Sberbank Online mobile application

Virtual Carrier SberMobile, part of the ecosystem, Sberbank has launched a virtual SIM card that eSIM can be issued and used entirely online in the mobile version. SberBank Online Sberbank announced this on November 18, 2020. More. here

Electronic SIM-cards in Russia began to connect completely remotely

On November 5, 2020, MTS announced the start of a completely remote connection of electronic SIM-cards. The service is available in all regions of the operator's presence. Read more here.

M.Video and Eldorado launched sales of virtual sim-cards throughout Russia

On October 23, 2020, the M.Video-Eldorado group announced the start of sales of eSIM cards from Tele2 in more than 1,000 stores. Read more here.

Electronic SIM cards began to be sold throughout Russia

On October 23, 2020, the M.Video-Eldorado network announced the start of selling digital SIM cards throughout Russia. The retailer began to cooperate with the operator Tele2, which had previously sold eSIM in salons in some regions. Read more here.

The Ministry of Telecom and Mass Communications demanded that operators certify biometric systems for the sale of eSIIM

At the end of July 2020, the Ministry of Telecom and Mass Communications demanded that telecommunications companies obtain certificates from the  Federal Service for Technical and Export Control (FSTEC) and the Federal Security Service (FSB ) for a biometric identification system that is used for the remote sale of electronic SIM cards (eSIM).

This requirement was announced at a meeting on the implementation of eSIM technology held on July 24, 2020, Kommersant writes, citing two sources who attended this event. It was conducted by the deputy head of the Ministry of Telecom and Mass Communications Oleg Ivanov, who said that the launch of operator systems was not agreed with the ministry, and to identify subscribers, they need to connect to the Unified Biometric System (EBS) developed by Rostelecom.

The Ministry of Telecom and Mass Communications demanded that telecommunications companies obtain certificates from the Federal Service for Technical and Export Control (FSTEC) and the Federal Security Service (FSB) for a biometric identification system that is used for the remote sale of electronic SIM cards

According to Ivanov himself, the ministry believes that in order to use biometric identification systems for operators, it is necessary to certify them, while the EBS meets the existing information security requirements.

In addition, according to the Ministry of Telecom and Mass Communications, a simple electronic signature will be enough for identification when using eSIM, provided that information about the subscriber is confirmed using the Unified Identification and Authentication System (ESIA) and the EBS.

Representatives of operators who were present at the meeting asked the Ministry of Communications to consider the possibility of a transition period during which the EBS will develop and increase the number of users, and the business could use its developments.

Certification will not be a guarantee of security, but a necessary minimum, says Qrator Labs technical director Artem Gavrichenkov. He recalls that mobile operators have repeatedly got into incidents when, for example, in cell phones, a person's SIM card was "taken away" and then used it to steal money from bank accounts.^[8]

Rossvyaz for 15 million rubles will develop a plan for the implementation of eSIM

On March 31, 2020, the Federal Communications Agency (Rossvyaz) announced a tender for the development of a concept for the use of eSIM technology in Russia. The maximum contract value is 15 million rubles. Read more here.

Tinkoff began selling virtual SIM cards. Connection takes place remotely

On March 18, 2020, Tinkoff Mobile announced the start of sales of virtual SIM cards - eSIM. Connection takes place remotely, and only clients of the Tinkoff group can use the service.  During the first week, new subscribers of the operator can call and use the Internet for free. Read more here.

Legalization of eSIM in Russia is postponed due to unreliable remote identification

On February 6, 2020, it became known about the postponement of the legalization of eSIM technology in Russia. The reason is unreliable remote identification in such SIM cards.

The Ministry of Telecom and Mass Communications indicated the need to postpone until the end of 2020 the preparation of documents necessary for the implementation of eSIM. The department was supposed to prepare proposals for legal regulation by January 15, 2020, Kommersant writes with reference to the report of Konstantin Noskov, who served as Minister of Communications, addressed to Deputy Prime Minister Maxim Akimov at that time, sent to the government at the end of 2019. 

] The Ministry of Digital Development, Communications and Mass Media of the Russian Federation asked to postpone until the end of 2020 the preparation of documents necessary for the implementation of eSIM

As reported in the document, the problem for the introduction of eSIM technology is the biometric system, which was proposed by operators for remote identification of subscribers. It itself is still outside the legal field, in addition, it raises questions about the level of its security, which may be lower than, for example, an electronic signature.

Oleg Ivanov, deputy head of the Ministry of Telecom and Mass Communications, reminded the publication of the state system for collecting biometric data, but said that first it is necessary to resolve the issue of introducing biometrics into the system of public services, and only then distribute it to eSIM. The same opinion is shared by the Minister of Communications Maksut Shadayev.

Rostelecom supports the legalization of eSIM and believes that the delayed implementation will worsen Russian positions in the innovation market. Tele2 The publication said that they are already using the application for remote connection of customers. MTS But the believes that the remote identification mechanism needs to be improved.

Security problems can arise both in the electronic signature system and in biometrics, says Qrator Labs technical director Artem Gavrichenkov. At the same time, in the case of a biometric base, an "unprecedented level of protection" will be needed to prevent leaks, he added.^[9]

Ministry of Digital Development is preparing amendments to the current legislation for the implementation of eSIM

The Ministry of Digital Development communications and Mass Media () Ministry of Digital Development, Communications and Mass Media is preparing amendments to the current legislation for the introduction of virtual SIM card technology (eSIM) following a discussion with telecom operators. This became known on January 14, 2020 with reference to the press secretary of the department Yevgeny Novikov.

In 2019, the ministry held three meetings with leading telecom operators, industry scientific institutes and interested departments. In particular, they considered the operators' proposals for the use of biometric subscriber identification systems and assessed the feasibility of amending the legislation for the use of eSIM.

The main problem of the introduction of eSIM in the Ministry of Communications is considered legitimate remote identification of subscribers.

If it (the problem) is solved, there are no other obstacles to the implementation of the technology, said Evgeny Novikov

The Ministry of Telecom and Mass Communications also stressed that as of January 14, 2019, a preliminary list of five by-laws has already been formed, to which changes must be made. The agency has prepared a draft amendment to the Government Decree "On the Procedure for the Provision of Telephone Services." Amendments to the rest will be prepared during 2020^[10].

2019

Apple and MTX Connect eSIM collaboration

On December 19, 2019, it became known about the start of cooperation between MTX Connect and Apple on eSIM technology. This is the second partner of an American corporation with Russian roots in this sector after Truphone, which sells virtual SIM cards to which several foreign phone numbers can be linked using a special application, which allows you to use local fares when traveling. Read more here.

The FSB allowed eSim to be sold. The technology works in networks of several operators

On October 23, 2019, it became known that the FSB issued permission to the virtual operator Easy4 (Sonnet LLC ) to sell communication services using eSim and identify subscribers by electronic signature through public services. Read more here.

Identification of mobile subscribers by face and voice for the development of eSIM will appear in Russia

On September 24, 2019, it became known about the creation in Russia of a system for remote identification of cellular subscribers by face and voice. It is assumed that this technology, which is being developed by Rostelecom, will contribute to the spread of eSIM electronic SIM cards. Read more here.

The Ministry of Telecom and Mass Communications allowed Tele2 to continue the experiment on issuing eSIM

According to Deputy Minister of Communications Oleg Ivanov, the Ministry of Telecom and Mass Communications allowed the Tele2 operator to continue the experiment on issuing an eSIM. This became known on September 20, 2019.

Tele2 began issuing eSIM subscribers in several Moscow salons from April 29, but the next day suspended the issuance, explaining the lack of virtual SIM cards. On May 14, Tele2, at the request of the Ministry of Telecom and Mass Communications, "until all security issues are resolved," stopped the issuance of eSIM. Read more here.

The Ministry of Communications, FAS and FSB instructed to work out the legalization of eSIM

In early September 2019, it became known that Deputy Prime Minister Maxim Akimov instructed the Ministry of Telecom and Mass Communications, the Federal Antimonopoly Service and cellular operators to prepare proposals for a regulatory framework for the legalization of  eSIM virtual SIM card technology in Russia. The FSB will also be involved in the discussion of the issue.

Proposals for changing the regulatory framework must be prepared by January 15, 2020. Specialists of the Ministry of Telecom and Mass Communications should find out whether domestic cryptographic information protection tools can work on modern gadgets with eSIM. It is also necessary to clearly spell out the rules for remotely concluding a contract for communication services for subscribers and changing the profile password when transferring a number to another device.

Deputy Prime Minister Akimov instructed to work out the legalization of eSIM by January 15, 2020

We consider the introduction of eSIM to be very important and timely, this will be a significant tool for the development of competition in the market, and therefore for improving conditions for consumers, "Elena Zaeva, head of the FAS communications and information technology regulation department, told Kommersant.

According to her, the main approaches to regulating eSIM should appear before the end of 2019.

Electronic SIM cards are not approved by the Big Three operators. They believe, firstly, that the ability of the subscriber to change the communication service provider at any time will lead to an aggravation of competition and price wars. Secondly, eSIM technology in the current configuration can threaten the security of communication secrets for Russian subscribers.

The Institute for Internet Research (III) proposed to oblige manufacturers of devices with electronic SIM to place servers in Russia for subscriber profiles and cryptographic keys. Storing this data abroad may raise questions for the Russian security services.

Specific parameters for the use of eSIM in Russia (in particular, the procedure for connecting and disconnecting subscribers) have yet to be determined.^[11]

eSIM technology contradicts the initiative to introduce domestic cryptography

This conclusion was made in a report prepared by the Institute for Internet Research (III) following meetings with representatives of the Ministry of Telecom and Mass Communications, the FSB, the Federal Antimonopoly Service (FAS), VimpelCom, MTS, MegaFon and Kryptonit NPK ^[12].

In particular, the document says that if the production of chips for eSIM and profile loading platforms are located abroad, then the cryptographic keys of virtual SIM cards are also located. The authors warn that in such conditions it is impossible to guarantee their safety, and this directly affects the protection of the secrecy of communication.

According to the authors of the report, the initialization of eSIM chips should be carried out on Russian territory with the fulfillment of special conditions. They indicate the need for mandatory placement of servers on the territory of the Russian Federation for eSIM profile loading platforms and equal access to the technology of operators and manufacturers. Another requirement is that the smartphone interface should not allow predetermining the subscriber's choice of operator or platform.

According to the director of the IIA for strategic projects Irina Levova, on June 3, the report should be sent to the Deputy Prime Minister of the Russian Federation Maxim Akimov.

Tele2 was the first to launch eSIM in Russia

On April 29, 2019 Tele2 , the company announced that, under the "Other Rules," it had implemented the first of the "Big Four" eSIM on its network. The Tele2 project on the use of eSIM fully meets the requirements safety and legislation RUSSIAN FEDERATION in the field of service provision. communications More. here

Tele2 and Rostelecom are testing eSIM

Tele2 and Rostelecom have completed testing and are ready to introduce eSim technology while the Big Three operators oppose the technology. Experts believe that "big" operators see eSim technology as their "enemy," so it is likely that their interests will be lobbied at the legislative level in the form of a delay in the adoption of the necessary regulatory framework.

"The new technology expands the possibilities of connecting subscribers: they do not need to go to the operator's communication salon, it will only be enough to provide the device with access to the Internet. At the same time, the eSim will not break or get lost, as can happen with a physical SIM card. The main requirement for connection security - subscriber identification - will also be met, as in the case of a physical SIM card. The technology will also allow the use of two or more SIM cards in devices that previously supported only one physical SIM card (for example, devices based on iOS), "a representative of the Tele2 press service told ComNews.

Tele2 is confident that the introduction of the technology will have a positive effect on the telecom market, as it will contribute to the development of healthy competition and work in the interests of the client. "Also, eSIM greatly facilitates the transition to another operator via MNP. For virtual operators, the technology is attractive in that it does not bind customers to the points of sale of physical SIM-cards. For example, Sber Mobile and MVNO Rostelecom are interested in legitimizing and implementing eSim. This technology removes many barriers to virtual operators, simplifies and cheapens customer acquisition "

MTS, MegaFon and VimpelCom opposed eSIM. FSB supported their position

Russian mobile operators MTS, MegaFon and VimpelCom in April 2019 at a meeting on the prospects for using built-in SIM cards (eSIM) opposed the introduction of this technology in Russia^[13].

According to sources in the telecommunications market, a representative of the Center for Information Protection and Special Communications of the Federal Security Service agreed with them. The department explains its position by difficulties with the use of domestic cryptography in this product.

As for telecom operators, they are concerned that the introduction of the technology will lead to increased competition and reduced revenue.

"eSIM eliminates the need for operators to open communication salons and sell physical SIM cards. This will increase competition from virtual mobile operators and reduce barriers to market entry for foreign vendors, "the source emphasized

A top manager of another operator clarified that eSIM will allow foreign companies to "supply smartphones and other devices with their communications contracts," which could lead to an outflow of money from Russia abroad. Another source added that the introduction of eSIM could lead to price wars between telecommunications companies, as subscribers will easily be able to change operators.

result, operators will lose a significant part of cash flows, and communication prices in Russia are already among the lowest in the world," he said

The press service of MegaFon stressed that "it is too early to put eSIM into commercial implementation, since solutions are required on a number of issues."

According to the deputy head of the Ministry of Telecom and Mass Communications Oleg Ivanov, solving security issues for the operation of eSIM in Russia should be a priority task before introducing this technology.

2016-2018

• The eSIM standard appeared in back in 2016, after which the first devices that support the technology began to appear.
• Operators in Europe and the United States launched the technology at the end of 2018.

Global eSIM Chip Market Growth by 63% to 364 Million - Counterpoint

In 2018, 364 million devices (including cars) with support for eSIM technology were released worldwide, which is 63% more than a year earlier. This is evidenced by data from analysts at Counterpoint Technology Market Research, released on July 11, 2019.

According to the results of 2018, Gemalto was named the largest manufacturer of eSIM chips, which supplied about 65 million chips. Giesecke + Devrient (64.5 million) is located in close proximity to the leader, and STMicroelectronics (57.5 million) closed the top 3.

Biggest eSIM chip makers, data from Counterpoint Technology Market Research

Experts explained the leadership of Gemalto and Giesecke + Devrient by an extensive partner channel, GSMA certification and the creation of comprehensive  eSIM solutions.

According to Counterpoint analyst Satyajit Sinha, the growing penetration of eSIM will revolutionize how connections in devices will be activated and controlled.

The compact eSIM form factor provides significant space reduction for device manufacturers, along with potentially higher security, reprogrammability, and power efficiency compared to traditional SIM card solutions. Thanks to eSIM, operators can significantly reduce the cost of distributing and activating SIM cards, as well as increase roaming revenues. In addition, eSIM offers huge benefits for consumers and corporate customers, making it easy to select, activate, connect and manage connections on their devices, Sinha reported.

The study indicates that by July 2019, eSIM solutions fall into three main categories:

• software eUICCs;
• hardware MFF2;
• hardware WLCSPs.

The latter two are GSMA certified and meet the safety standards set out in the SGMA specifications SGP.01/ 02/21/22

Gemalto embeds eSIM into Qualcomm processors

On May 28, 2018, Gemalto announced the embedding of a SIM card in Qualcomm processors. Thanks to this collaboration, eSIM technology will be widely used in the market, as it will find application in various laptops, tablets and Always Connected computers.

Integration of the SIM card chip directly into the single-chip system was made possible thanks to eSIM technology, which, in addition to saving space, provides a number of other advantages, including "seamless" access to LTE networks and fifth-generation networks in the future, extends the life of autonomous electronics and creates the basis for the development of new consumer applications in the field of online payments, authorization in cloud services and fares in public transport.

eSIM technology will be widely used in the market as it will find application in various laptops, tablets and Always Connected computers

The press release notes that we are talking about the first implementation of eSIM in processors developed for Always Connected PC and other similar consumer devices.

Gemalto says that due to eSIM, electronics manufacturers will be able to optimize the cost of purchasing components and organizing supplies, since the solution allows you to configure devices during or after production.

The technology also brings great benefits to mobile operators: they will have access to a large database of connected devices and a platform for protecting services.

The first Always Connected PC products powered by Qualcomm Snapdragon chips with built-in Gemalto technology will hit the market in early 2019.^[14]

Notes