SGP.32 Set to Transform IoT Connectivity

Key Takeaways

The upcoming SGP.32 standard, set to launch in H2 2025, will transform IoT connectivity, creating new roles like the eSIM Orchestrator.
Increased regulations and MNO caution are pushing businesses to adopt more strategic approaches to device connectivity management.
The evolution of IoT connectivity is prompting a shift from traditional MVNO roles to specialized platforms focused on local compliance and efficient management.

Transforming IoT Connectivity with SGP.32

The anticipated SGP.32 standard, scheduled for introduction in H2 2025, is set to revolutionize the landscape of IoT connectivity. As detailed in a report by Transforma Insights, this change is expected to redefine the functions of traditional Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs). Matt Hatton, Founding Partner at Transforma Insights, underscores that businesses must adapt strategically to manage global device connectivity effectively.

The new SGP.32 standard aims to simplify remote SIM provisioning, offering companies the flexibility to manage their device connectivity more efficiently than previous standards, such as SGP.02 and SGP.22. This transition facilitates the management of eSIM profiles via an eSIM Orchestrator (eSO), which utilizes an IoT Profile Assistant (IPA) and an eSIM IoT Remote Manager (eIM) for remote administration. This change comes at a time when MNOs are tightening their regulations surrounding eSIM usage, raising the need for compliance and security around device connections.

In addition to technological advancements, several regulatory trends are reshaping IoT connectivity. Countries like Brazil, India, Turkey, and China are enforcing local SIM profile mandates and tightening rules against prolonged foreign roaming. These changes necessitate the need for localized connectivity solutions to adhere to compliance while maintaining data sovereignty and national security.

Ian Marsden, Co-Founder and CTO at Eseye, emphasizes the need for companies to look beyond technical adjustments like SGP.32 to navigate regulatory complexities and operational strategies effectively. The competitive landscape of IoT connectivity is also evolving, with an increasing pressure to offer not just data resale but smarter connectivity solutions and additional services.

As MNOs favor direct local connections over roaming, the role of Connectivity Resellers is gradually diminishing. The emergence of the eSO is central to this shift, involving the oversight of the entire remote SIM provisioning process. This new role is positioned to handle SIM profile management and integration with existing connectivity platforms.

Moreover, as the cost of IoT connectivity declines, traditional MVNOs face pressure to innovate and create value beyond mere data resale. The application of various cellular technologies, including LTE-M, NB-IoT, and 5G, demands a deeper understanding of each network’s capabilities to ensure optimal connectivity.

Transforma Insights lays out several evolving roles essential for future IoT connectivity:

Mobile Network Operators (MNOs): They will manage local networks and foster collaborations.
Connectivity Resellers: These entities may shift to eSO roles as local connections become the norm.
eSIM Orchestrators (eSO): A critical new role managing the intricacies of eSIM setup and profile switches.
Remote SIM Provisioning Infrastructure Providers: Focused on the operational aspects of managing eUICC chips.
Global Infrastructure Providers: Ensuring seamless deployments across international boundaries.
Connectivity Management Platforms (CMP): Essential for integrating multiple networks and managing diverse requirements.

When evaluating eSO platforms, businesses should consider effective eSIM profile management, lifecycle awareness, customer support, and compliance with local regulations. A consolidated billing process and strategic partnerships with MNOs will also be vital for success.

While the full potential of SGP.32 and eSO platforms may still be unfolding, the road ahead points toward enhanced and compliant IoT connectivity management. The transition promises to reshape how businesses operate in the global market, emphasizing strategic foresight and adaptability amidst ongoing regulatory and technological changes.

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