Big news from MIIT! Small chip drives 2.2 billion market: these stocks soar

category:Finance
 Big news from MIIT! Small chip drives 2.2 billion market: these stocks soar


In terms of information, the Ministry of industry and information technology has agreed that China Mobile and China Telecom will carry out ESIM technology application services in the Internet of things and other fields. At the same time, the service is only limited to the opening of data services and the related directional voice and SMS services.

Mobile and telecom obtain ESIM license

According to the reply of the Ministry of industry and information technology, in order to meet the needs of accelerating the transformation from consumption oriented to production-oriented application of Internet of things, China Mobile and China Telecom are agreed to carry out ESIM technology application services in the Internet of things and other fields nationwide in principle. It is worth mentioning that this reply was published on October 19, but it was actually issued to operators on September 24.

The reporter noted that China Unicom was not included in the licensed operators. In fact, the Ministry of industry and information technology approved China Unicom to carry out ESIM technology application services in the Internet of things and other fields nationwide in mid December last year.

Second, China Unicom has always been more aggressive in ESIM business, whether it is the pilot and promotion of personal business, or the first to obtain the application license in the field of Internet of things. From the perspective of personal business, China Unicom is still in the leading position. On January 1 this year, China Unicoms ESIM wearable No.1 dual terminal service has successively opened a national service test. However, from the application of ESIM in the Internet of things, the three operators have entered the stage of competition on the same platform.

Third, with the further popularization of ESIM technology, it is conducive to the further development of the Internet of things. The core of the Internet of things is to realize the information interaction between things, and there are various information transmission technologies, including SIM, ESIM, Nb IOT, EMTC, etc. the application scenarios of each technology are different. The approval of ESIM provides a new technology choice for the development of the Internet of things.

ESIM gives users more autonomy

Speaking of SIM card, I believe everyone is familiar with it. The full name of SIM is subscriber identity module (user identification module). Because it exists in the form of card, it is used to be called SIM card. Its main functions include storing data and completing user authentication and user information encryption under secure conditions.

The concept of ESIM is to embed the traditional SIM card directly into the device chip, instead of adding it as an independent and removable part. Users do not need to insert a physical SIM card. In the product form, it becomes a son8 packaged IC and is directly embedded into the circuit board.

ESIM is programmable. It supports remote configuration of SIM through OTA (over the air card writing). It can download, install, activate, de activate and delete the configuration files of operators. It is similar to ordinary sim in product function.

It is worth mentioning the function of writing cards in the air. In the past, telecom operators could tie users with their physical SIM cards. However, ESIM has given users greater autonomy and can change the services of operators more conveniently. This is also an important reason why operators are more conservative towards ESIM in the early stage. It should be noted that according to the requirements of the Ministry of industry and information technology, ESIM devices should not be restricted to be used on the networks of other operators.

Compared with SIM card, ESIM has many advantages, one is virtualization, the space occupation is greatly reduced, which is in line with the trend of miniaturization of terminal equipment; the second is to remove the link of external connection and enhance the adaptability to external environment; the third is to use and configure more flexibly. However, compared with traditional SIM, ESIM also faces many challenges in terms of security.

With regard to the development status of ESIM, Huatai Securities pointed out that the maturity of ESIM remote configuration technology and inter terminal interoperability system indicates that it has the ability of large-scale commercial application in the Internet of things industry. In China, the formulation of ESIM related standards led by CCSA is also in continuous progress. It is expected that the relevant standards will not be completed soon, laying the foundation for the large-scale commercial use of ESIM in China.

From the perspective of industrial chain, ESIM can be roughly divided into three major links: upstream, midstream and downstream. Among them, the upstream links include CA institutions, card chip manufacturers and terminal chip manufacturers; the midstream links mainly include ESIM platform suppliers, telecom operators, euicc manufacturers and ESIM terminal / module manufacturers; and the downstream links are mainly terminal customers, including enterprise customers and consumer users.

Telecom operators mainly provide mobile communication services, produce and manage ESIM electronic cards. Related listed companies include China Unicom listed in Hong Kong stock and a share, China Mobile and China Telecom listed in Hong Kong stock market. Euicc manufacturers are responsible for the development of COS and the production of eiicc hardware products. They do not issue certificates from euicc, which involve Jiede, Tianyu information, Hengbao shares, Dongxin Heping, etc.

In addition, Ziguang Guowei also involves ESIM business. According to public information, in 2019, Ziguang Guowei and Unicom Huasheng signed a strategic cooperation agreement to cooperate on ESIM business; meanwhile, Ziguang & Unicom Internet of things joint innovation center was established to promote the comprehensive innovation and safe landing of the Internet of things.

Regarding the possible impact of the development of ESIM, Huatai Securities proposed that the promotion of ESIM may reduce the purchase cost of operators. Under the traditional SIM mode, operators purchase SIM cards, while in ESIM mode, intelligent terminal manufacturers purchase SIM cards. On the other hand, ESIM may become the starting point for operators to develop innovative business.

Andrew brown, executive director of enterprise and Internet of things services at strategy analytics, said the need to replace SIM cards for millions of IOT devices was unrealistic, and ESIM brought a powerful and scalable solution to meet the challenges posed by SIM cards. The growth of ESIM and ISIM is critical to driving seamless connectivity to as many devices as possible over the next few years.

Source of this article: Yang Qian, official micro editor of E Company_ NF4425