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


The latest research report from strategy analytics predicts that ESIM sales for IOT applications will grow to $326 million (about 2.18 billion yuan) by 2025.

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.

According to the official reply, the licenses obtained by the two operators this time are for ESIM technology application services in the Internet of things and other fields, and are only limited to the opening of data services and the related directional voice and SMS services. According to the requirements of the Ministry of industry and information technology, the two operators should strictly comply with the relevant requirements of code number management, and can only use 13 digit Internet of things numbers to carry out ESIM technology application services in the Internet of things and other fields.

At the same time, China Mobile and China Telecom can only handle ESIM technology application services in the Internet of things and other fields through their own channels, and cooperation with resale enterprises to provide relevant services must be separately applied for. The two operators should also take effective measures to ensure the management right of ESIM platform and the card writing right of ESIM terminal, and shall not authorize other enterprises to open relevant permissions and functions in any form.

There are several points worthy of attention about the situation of mobile and telecom obtaining ESIM Internet of things application license. First, the content of this license does not include personal communication services. For example, China Mobile and telecom have experimented with esim-1 dual terminal service in some cities. Based on this service, networking and calling functions can be realized on smart terminals such as applewatch. However, according to the reply from the Ministry of industry and information technology, such ESIM personal communication services of mobile and telecom still fail to break through the limitations of pilot projects, and there is still a long way to go before formal commercial use.

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.

From SIM to ESIM, there have been many iterations and developments. It is understood that since the birth of SIM, it has gone through more than 30 years of development. With the miniaturization and thinness of mobile phones, the size of SIM is also continuously shrinking, from the original standard SIM card to the current nano card. ESIM stands for embedded SIM, that is, embedded SIM card.

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.

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.

Forecast: ESIM sales will reach 326 million US dollars

The reporter learned that at present, the listed companies are mainly involved in the middle reaches of three links, including ESIM platform suppliers, such as Jiede, jinyatuo and Tianyu Information. These companies are responsible for developing and maintaining the ESIM management platform and providing products or services to operators (some operators will independently develop and build ESIM management platform).

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.

In addition, for card operators, it may be difficult for operators to open the application of ESIM in the mobile phone field in the short term, and ESIM will open up incremental markets such as wearable devices for traditional card operators. For smart terminal manufacturers, the promotion of operator ESIM is expected to accelerate the penetration of wearable devices represented by smart watches, which will benefit wearable device manufacturers.

The reporter noted that last month, strategy analytics, a market and consulting firm, released a research report and predicted that the sales of ESIM for Internet of things applications would grow to $326 million by 2025.

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