Interpretation of eSIM China Development Report

　　On February 27, 2019, during MWC19 Barcelona, the GSMA released the eSIM in China, co-authored with the Telecommunications Terminal Industry Association (TAF) : The Road Ahead (eSIM in China: the road ahead report, based on a survey of 19 enterprises * in China, including mobile operators, SIM card suppliers, device manufacturers, Internet of Things enterprises, technology companies and vertical industry organizations, Demonstrate China's current support for eSIM functionality in consumer electronics (wearables, tablets, and laptops), Internet of Things (IoT) devices, and smartphones.

　　At the media conference, Si Han, president of GSMA Greater China, first thanked the 19 companies participating in the survey of this report, and she pointed out that China, as the world's largest iot market and the most complete iot terminal manufacturing center, has been the focus of work in the region to advocate and promote eSIM technology in line with GSMA specifications. GSMA hopes that through close cooperation with TAF, it will continue to promote the development of China's eSIM mobile industry ecosystem towards a unified, practical and standardized direction, solve the problems of industry fragmentation and interoperability, and provide more convenience and choice for consumers.

　　Xie Yi, chairman of the Telecom Terminal Industry Association, said that TAF has always been committed to combining the industrial chain and GSMA based on national conditions, jointly promoting the steady development and landing of eSIM in China, and promoting the benefits of global industries. China is seeing more and more technological innovation in eSIM and is becoming a leader in testing and implementing new technologies.

　　At the press conference, Pablo Iacopino, Project leader of GSMA Intelligence, and Pontze, General Manager of GSMA China Strategic Cooperation, interpreted the important conclusions of the research report.

　　Consumer electronics: Smartwatches dominate eSIM technology development in China

　　At present, smartwatches equipped with eSIM technology are developing rapidly in China. Although eSIM smartwatches still account for only a small portion of the total number of smartwatches, their share is likely to increase in the future. To drive adoption, Chinese carriers are also enabling consumers to share a number between their smartwatches and their phones. In addition, when it comes to devices such as laptops and tablets, the way to purchase traffic data online, rather than in-store, provides greater flexibility and streamlines the purchase process.

　　Smartphones: It will take time for eSIM to gain traction. Although China manufactures a large number of smartphones for the global market, eSIM technology has not been formally adopted in the domestic market, which requires proper regulation and new manufacturing, logistics and supply chain processes. Globally, more than 50 mobile operators support smartphones with eSIM capabilities. Chinese ecosystem companies say smartphones will be the key to driving eSIM scale and cost reduction, and expect the market to gradually ramp up from 2021.

　　Internet of Things: China's eSIM application space is huge, and the automotive industry is leading the way. Chinese companies generally view the adoption of eSIM technology as critical to driving the iot market in the next 5-10 years. It also performs well in three verticals: automotive, logistics and energy utilities.

　　China is laying the foundation for eSIM ecological development and transition

　　China is currently in the early stages of eSIM development, where proprietary solutions and GSMA based solutions coexist, and although the GSMA specification is widely expected to become the de facto choice, at this stage, more experience and process optimization are needed to gradually meet local solutions and specifications suitable for short-term market needs. During the transition period, there will be a dual approach, with global standards for international cross-border business and simpler, cheaper standards for domestic business.

　　Streamlining rules is a key factor driving the large-scale development of China's eSIM ecosystem. Survey participants believe that streamlining processes, clarifying eSIM requirements for consumer and industrial equipment, and clarifying uniform rules for certificate management, root certificate issuance, security, and cross-border connectivity are important factors to accelerate eSIM deployment, and that the government is piloting eSIM services. It is also important to advocate for an open eSIM ecosystem, especially in the emerging field of industrial iot.

　　It is worth mentioning that TAF published the eUICC and eUICC ID (EID) implementation guidance documents respectively in December 2018, and is committed to finalizing a unified certificate issuance (CI) management framework in China, including implementation guidance across different applications.

　　Creating a unified and friendly technology, market and regulatory environment will directly determine the speed of adoption and adoption of eSIM in China and around the world. The GSMA will also continue to bring together global mobile industry stakeholders to drive the further development of eSIM in terms of standards, technology development and market deployment, and continue to monitor the adoption of eSIM in the consumer electronics and industrial sectors.