Value networks of embedded SIM-based remote subscription management

Rapidly growing cellular machine-to-machine (M2M) communications face new challenges, which do not exist in the conventional consumer mobile communications. With widely and remotely deployed M2M devices, the traditional way of changing a mobile operator by swapping SIM cards becomes problematic and expensive, or even impossible if the SIM card is soldered to the device. In order to address this problem, a standard for over-the-air subscription management called Embedded SIM has been developed. The standard is likely to bring significant, but not well understood changes to the current technical and business processes of M2M communications. Moreover, if embedded SIM is adopted in mobile handsets and tablets, this can potentially disrupt mobile operators' business. In order to better understand possible business architectures of embedded SIM, this paper analyzes alternative value network configurations (VNCs) that can emerge around the remote subscription management. The VNCs are constructed by identifying important roles, actors serving these roles, and business links between the actors. In particular, the research defines three alternative configurations driven by three different actors: a SIM card vendor, a mobile operator, and a third-party M2M connectivity provider.