eUICC disruption: adjusted SIM shipments to remain strong
The eUICC concept consists in replacing the detachable SIM that has been present since the inception of mobile communication by a chip soldered on the handset motherboard performing the same functions. Such a technology evolution may trigger changes in the whole mobile communication ecosystem, as the customer relationship management may shift from the mobile network operator to the handset vendor.
The report highlights that MNOs are believed to resist the transition from removable SIM to an embedded module, which eventually may negatively impact their core business. However, the consultancy has conducted a field research, which founds that some MNOs do believe in business opportunities that come with eUICC adoption and thus come out for its implementation. Handset makers alike other third parties are also expected to take advantage of the eUICC opportunity.
The Smart Insights Report “eUICC, a disruption in the SIM market” includes a series of adoption scenarios for eUICC, depending on which entity in the ecosystem is the most active in supporting the new technology. According to these scenarios, the adoption of eUICC as a replacement for the detachable SIM will not have a significant impact on the SIM market over the forecast period (2013 – 2018). The Smart Insights Report “eUICC, a disruption in the SIM market” concludes that a wide adoption of eUICC is not foreseen in the scope of the covered period, but rather in the long-term future. The report provides forecasts on eUICC shipments and adjusted removable SIM card shipments in volume. More information about Smart Insights Report “eUICC, a disruption in the SIM market” is available at www.smartinsights.net.