Keep IoT costs down with SGP.32

Businesses launching IoT solutions must manage total cost of ownership (TCO) carefully. Technology and process choices made early on can minimise costs or cause them to spiral. eSIM has capabilities that help with TCO, particularly for international deployments, but it has never really taken off for the IoT. Much of that is down to standards but SGP.32 is different. It is a new standard, built specifically for the IoT that supports eSIM profile management across millions of IoT devices, keeping costs and complexity down and minimising risk.

Top 3 takeaways on SGP.32 and cost of ownership

1. SGP.32 is the latest GSMA standard that makes eSIM more accessible for the IoT
2. SGP.32 eSIM can have a positive impact on IoT total cost of ownership by reducing stock keeping unit (SKU) proliferation, site visits and the risk of device recalls
3. SGP.32 eSIM can be a game changer, particularly for complex and international IoT, but OEMs and enterprises should still consult an IoT solutions provider to get the most benefit from it.

eSIM has a lot to offer, but in the IoT it is mainly used in automotive. That sector accounts for half of all non-consumer eSIM shipmentsⁱ. COVID-19, supply chain issues and a chipset shortage contributed to eSIM’s slow start, but so too have standards. They have worked for consumer and automotive but haven’t been so successful for IoT devices deployed in massive numbers or devices with limited memory or power.

What is SGP.32 and why is it important?

SGP.32 is GSMA’s eSIM standard for remote SIM provisioning (RSP). It is designed specifically for the IoT and enables lightweight, scalable and low-power IoT deployments so that RSP is practical across millions of devices.

This matters because the shortcomings of the previous standards (SGP.02 and SGP.22) made it difficult to manage eSIM profiles across IoT device estates.

To begin with, mobile network operators (MNOs) and mobile virtual network operators (MVNOs) had to maintain extensive interconnections to offer RSP. This added cost and complexity. Plus, it wasn’t easy for solutions providers like Wireless Logic to manage eSIM profiles because they were controlled by the network. Now, control resides in the device, so profile switching is simpler, making multi-region IoT deployments quicker.

SGP.32 was released in May 2023 although devices and SIMs are still being certified, so it is far from ubiquitous yet. However, the many benefits it offers are expected to stimulate the eSIM market and drive an estimated 195 million SGP.32 profile downloads in 2029—70% of all IoT[i].

Want to know more about eSIM? Read our guide

How does SGP.32 eSIM affect IoT total cost of ownership?

Single SKU

eSIM has always appealed because it offers simpler global deployments. The same SIM can go into all devices - they needn’t be specific to each destination – and the relevant network profile activated through RSP when products reach their destinations.

That means fewer stock keeping units (SKUs) to manage inventory, which has a huge impact on costs. Managing multiple SKUs to meet regional or other requirements increases inventory carrying costs by a considerable 20-30% annually[ii]. It also makes testing, certification and support more complicated, further adding to TCO.

Fewer site visits

Software updates can also be made over-the-air (OTA), reducing the need to send technicians to swap out SIM cards manually. When you consider this can cost more than $1,000 per visit[iii], it is clear how remote management can lower operational costs. When IoT deployments are vast and/or geographically spread, these costs can escalate quickly.

Reduced risk of device recalls

IoT devices can also receive software fixes and security updates OTA. In extreme situations this could avoid the need to recall devices and the significant costs involved there. Shipping, repair and replacement costs of recalls can be prohibitive, not to mention the often-unquantifiable cost of reputation loss. By one estimate, device recall costs can exceed $10m[iv].

OTA updates help resolve coverage, performance and compliance issues, including those around permanent roaming. This simplifies logistics, enhances resilience and ensures long-term operational efficiency for international IoT deployments.

By making the technological and process benefits of eSIM more accessible to companies designing and implementing IoT solutions, SGP.32 helps manage TCO for the long-term value and viability of IoT initiatives.

 

 

How to get started with SGP.32 – what OEMs and enterprises need to know

eSIM can be a game changer, particularly for complex, international IoT and SGP.32 makes it more possible. But eSIM at scale isn’t quite as simple as it may first appear. For starters, enterprises can’t just download any network profile they want. Profiles must be licensed. There are carrier agreements to put in place, contracting and authorisation to be done.

eSIM requires secure RSP infrastructure, lifecycle management and integration with device manufacturing.

Original equipment manufacturers (OEMs) should select SGP.32-compatible modules and chipsets then work with an IoT solutions provider early on to integrate eSIM into hardware and firmware. They will need to test extensively to validate connectivity across multiple networks during design and perform end-of-line testing at manufacture. They should plan for lifecycle management through RSP, security updates and network migrations.

Enterprises should engage with an IoT solutions provider to source SGP.32-ready devices that will work with the RSP services that will keep them connected. The solutions provider will provide the secure backend infrastructure so enterprises needn’t build it themselves, but they must future-proof their deployment through migration paths so that devices stay connected as networks evolve.

Enterprises planning IoT deployments, particularly multi-region ones, can enjoy the benefits of eSIM with the latest standard built for the IoT, supported by their solutions provider. eSIM isn’t just convenient to avoid SKU proliferation, provision SIMs remotely and make software updates OTA, it is potentially transformative for TCO. To find out more:

• see Wireless Logic’s free guide to TCO
• discover eSIM
• contact us to discuss.

[i] ABI Research – see https://wirelesslogic.com/blog/why-its-time-to-look-again-at-esim-for-the-iot

[ii] NetSuite – see guide to TCO

[iii] Sightcall – see guide to TCO

[iv] Insurance Edge – see guide to TCO