ACROSS MULTIPLE PERSONAL DEVICES - From eSIM to Digital Persona A Strategy Analytics white paper sponsored by Hewlett Packard Enterprise - HPE.com
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ACROSS MULTIPLE PERSONAL DEVICES
From eSIM to Digital Persona
A Strategy Analytics white paper
sponsored by Hewlett Packard Enterprise
Business white paper TABLE OF CONTENTS 4 INTRODUCTION: EVOLUTION TO SIM AND NOW eSIM 5 Proliferation of diverse device types 6 Mobile handsets will continue to be anchor for multi-device subscriptions 6 eSIM-based devices will grow exponentially 7 RAPID PROLIFERATION OF DEVICES AND DIVERSE CONNECTIVITY DEMAND DIGITAL ID 8 Everyone loves (inter)connected devices 9 New digital id landscape 9 Authentication—definition and typical use cases 10 Entitlement—definition and typical use cases 10 Orchestration—definition and typical use cases 12 SIMPLER ACTIVATION AND SECURE ACCESS AUTHORIZATION ARE ESSENTIAL 12 CSPs are uniquely positioned to deliver digital id 13 ABOUT COMMUNICATIONS AND MEDIA SOLUTIONS, HEWLETT PACKARD ENTERPRISE 13 ABOUT STRATEGY ANALYTICS
Business white paper Page 3
Report snapshot
As eSIM and non-SIM devices proliferate, they require seamless
access to mobile services based on the subscriber’s federated
digital identity (ID) that is anchored by a primary smartphone
subscription.
This report describes the three functions service providers need:
• Authentication to validate devices and subscribers
• Entitlement to ensure that devices are associated with the
right rate plans
• Orchestration to deliver seamless access and delivery across
multiple diverse devices and services
Business white paper Page 4
INTRODUCTION: EVOLUTION TO SIM AND
NOW eSIM
When cell phones first arrived in the early 1980s, the equipment identifier was part of the device hardware. It was
associated with a mobile number and the subscriber’s rate plan through a physical in-store provisioning process by
the service provider. A major breakthrough came with Universal Mobile Telecommunications Service (UMTS) and
3G (GSM) in the early 1990s when the SIM card—a universal integrated circuit card (UICC) was introduced to hold
network-specific information that identifies and authenticates subscribers on the provider’s network. The UICC/GSM
SIM could contain several applications that provided access to both GSM and UMTS networks. In addition, the SIM
card could store a small personal phone book and other applications.
As SIM cards became removable, users found they could switch to new devices simply by swapping the SIM card.
It was also possible to switch service providers and keep the same phone number by swapping the SIM card. Or
users—with the right radio standard on their device, for example, GSM—could roam internationally and pay local
rates simply by buying a separate SIM card for the countries they were traveling to.
But many users found swapping SIM cards difficult to do without help.
The idea of an eSIM or electronic/embedded SIM identifier stored in firmware instead of on a physical card began to
be explored as early as 2010. But it was not standardized until late 2016, in part because service providers feared
that it would be too easy to swap constantly between providers to get the best current service discount.
Most recently, new devices have emerged that only have an eSIM identifier instead of a physical SIM card. This is
especially useful for devices with a limited user interface such as a smartwatch or fitness tracker.
However, even eSIM devices have to be authenticated and validated for rate plans and service access—typically
through a smartphone app or even a web portal. This makes the process seamless not just for devices but also for
roaming between phone and cloud, and even private corporate services—the subject of this report.Business white paper Page 5
PROLIFERATION OF DIVERSE DEVICE TYPES
Last year, Strategy Analytics looked at all its device forecasts to create Figure 1. The figure shows that by 2025, the
installed base of connected and Internet of Things (IoT) devices is expected to reach nearly 40 billion worldwide.
Global connected and IoT devices installed base forecast
45
40 Enterprise IoT**
35 Smart home devices
30 Wearables
Billions
Connected vehicles
25
Smart TVs
20
Smart speakers and screens
15
Other internet media devices*
10 Tablets
5 Smartphones
0 PCs
10
11
12
13
15
16
18
19
20
22
23
24
25
14
17
21
07
08
09
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
* Includes audio systems, Blu-ray disc players, digital media access (home entertainment device that can connect to a home network to retrieve
digital media files), games consoles, digital camera, e-readers, portable music/CD players, portable games consoles, network attached storage
(NAS), set top boxes (STB), and DVRs.
** Includes IoT interconnection of embedded devices within internet infrastructure—machine-to-machine (M2M) communications, low-power
local-area (LPLA) and low-power wide area (LPWA), Narrowband-IoT (NB-IoT), LoRa, Wi-Fi HaLow, along with mesh-networked devices.
Source: Strategy Analytics
FIGURE 1. The proliferation of diverse device types1
Many of these devices do not have a programmable user interface and, in most cases, users will want to add them
as additional devices on their current communications rate plan rather than buy a separate plan. And most of them
will require internet, as well as phone access, so that by 2022, we estimate there will be four devices per person on a
global basis. In North America and Western Europe, we project over 10 devices per person.
1
Global Connected and IoT Device Forecast, Strategy Analytics, May 2019Business white paper Page 6
MOBILE HANDSETS WILL CONTINUE TO BE ANCHOR FOR MULTI-DEVICE
SUBSCRIPTIONS
In an analysis of subscriptions by device type, it is clear that handsets will continue to be the anchor, as shown in
Figure 2.
10000
9000
8000
Million subscriptions
Other subscriptions (M)
7000
Table subscriptions (M)
PC/Modem subscriptions (M)
6000 Handset subscriptions (M)
5000
4000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Source: Strategy Analytics
FIGURE 2. Subscriptions by device type2
Handsets will still account for 91% of user-linked subscriptions (excluding M2M) by 2024, even as PC/modem
connections are projected to grow at a compound annual growth rate (CAGR) of 2.7% through 2023. Tablet
subscriptions will grow steadily at a CAGR of 4.3% through 2024 and subscriptions for other connected devices
will grow at a CAGR of 26% through 2024, driven in part by connected cars and wearables.
eSIM-BASED DEVICES WILL GROW EXPONENTIALLY
eSIM-only smartphones such as Apple and Google™ will play an increasingly important role over the next few years,
as they grow from over 75 million per year in 2019 to nearly 300 million in 2024. Even more importantly eSIM-based
devices are projected to reach nearly 2 billion units by 2025, as shown in Figure 3.3
Global eSIM device shipments: 2018 vs. 2025 Variety of 2 billion eSIM shipments by device type in 2025
2.0
eSIM-based device
2 Billion shipments in 2025
Billions of eSIM shipments in 2025
Billions of eSIM shipments
Total = 2 billion
27%
R:
CAG
0.364 364 million
0 2018 2025
Source: Counterpoint Research
FIGURE 3. Shipments of eSIM-based devices forecast to reach nearly 2 billion units by 2025
2
Worldwide Cellular User Forecast 2019-2024, Strategy Analytics, May 2019
3
Shipments of eSIM-based Devices to Reach Nearly 2 Billion Units by 2025, Counterpoint, July 2019Business white paper Page 7
RAPID PROLIFERATION OF DEVICES AND
DIVERSE CONNECTIVITY DEMAND DIGITAL ID
In parallel with the proliferation of devices, we have already seen a dramatic evolution in connectivity since 2010, as
shown in Figure 4.
Independent, often unconnected devices evolve to connected, cloud synchronized devices and services.
Technology introduction Year
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
iPad, Instagram
Spotify
Apple Watch
Amazon Echo, Alexa
Pixel 2 with eSIM
2018 iPhone XR/XS with eSIM
Disney+, Apple Watch ECG
5G
FIGURE 4. Connection evolution from 2010 to 2020
In 2010, the iPad, Instagram for images, and Spotify for streaming music were brand new. In the middle of the
decade along came the Apple watch and smart speakers such as Amazon Echo. By 2017–2018, we had eSIM devices
and media was moving to the cloud with Disney+ and 5G arriving at the end of the decade.
These use cases and new devices have changed the nature of connectivity from one-to-one device to network
connectivity, in 2010, to multiple devices connected to each other and to multiple networks, in 2020. Today,
smartphones share a federated digital ID with eSIM wearables or tablets via a cloud account or connected services;
and multiple cloud services are accessed across multiple devices from smartphones, PCs, or tablets. The identity
associated with a phone number now connects to any device with that digital ID.Business white paper Page 8
EVERYONE LOVES (INTER)CONNECTED DEVICES
Devices that connect to a network plus also interconnect and synchronize with one another along with common
service access, as shown in Figure 5, are highly desired.
SIM
Same ID across
all your experiences
Wi-Fi
eSIM
FIGURE 5. Seamless interconnection makes multiple devices easier to manage
When devices are quick and easy to onboard and seamlessly interconnected over Ethernet, Wi-Fi, 4G, and soon 5G,
so that they appear to work as one, they will significantly enhance the customer’s experience.
For service providers, supporting clusters of diverse devices makes it quicker to launch common services and add
personalization features that persist across all of them. Digital ID should significantly accelerate the speed, with
which new services are launched, and enhance the stickiness of the service providers who offer.
For device manufacturers, digital ID that is integrated with device management, for example, in an enterprise
environment, can make it much easier to deploy software upgrades or download new software features. It may even
help sell additional devices.Business white paper Page 9
NEW DIGITAL ID LANDSCAPE
Digital ID is, therefore, not only a necessity to support the exploding number of eSIM devices, but it is also
a burgeoning opportunity in its own right. GSMA has endorsed estimates that by 2024, the opportunity for
mobile operators to enable digital ID for over 3 billion subscribers is worth $7 billion.
Therefore, service providers must meet the needs of subscribers who want to:
• Have multiple connected and interconnected devices
• Access multiple platforms and services on those multiple devices
• Get secure, consistent access to their services and information across their connected devices
To deliver this, the service providers need:
• Tools to connect their subscribers’ devices and platforms
• Identity federation to manage digital ID
Specifically, there are three capabilities required to meet those requirements. They are:
• Authentication
• Entitlement
• Orchestration
We describe each of these below. The related white paper Digital ID—Functions and Building Blocks describes the
technical implementation.
AUTHENTICATION—DEFINITION AND TYPICAL USE CASES
There are two types of authentication.
The first is for SIM- and eSIM-enabled devices, which leverages the embedded EAP-AKA capability. The EAP-AKA
protocol was developed by 3GPP for authentication and session key distribution, and uses the AKA mechanism. The
mechanism is based on symmetric keys and runs in SIM or eSIM module. EAP-AKA includes optional identity privacy
support, optional result indications, and an optional fast re-authentication procedure.
The second approach is for non-SIM clients that cannot access AKA functionality on the device and can use
network access with:
• OAuth 2.0: an authorization framework that enables a third-party application to obtain limited access to an
HTTP service
• OpenID Connect: an identity layer on top of the OAuth 2.0 protocol that allows clients to request and receive
information about authenticated sessions and end-users
Typical use cases that require authentication are:
• Companion device activation
• On-device plan purchase
• Account takeover protection (prevent bank fraud due to SIM cloning)Business white paper Page 10
ENTITLEMENT—DEFINITION AND TYPICAL USE CASES
Based on GSMA TS.43, entitlement is defined as the applicability, availability, and status of a service, needed by the
client before offering that service to end-users.
Typical entitlement functions are to:
• Provide overall status of the service to the client
• Offer status of activation procedure of the service to the device
• Manage web views presented to users by the client during activation and management of the service
Typical use cases that require these entitlement functions are:
• VoLTE calling
• VoWiFi calling
• SMSoIP (SMS Over IP)
• On-device subscription activation (ODSA)
ORCHESTRATION—DEFINITION AND TYPICAL USE CASES
Orchestration simplifies and streamlines the processes required for subscription activation and post-activation; and
enables intelligent user transparent management of connected devices such as smartphones, wearables, and tablets.
From the user perspective, orchestration provides a single-entry point for all on-device administrative procedures
and makes interactions with different independent systems at the operator or service provider level fully transparent
to the subscriber. This is essential for seamless enablement of the subscriber’s federated identity that needs to:
• Link multiple devices with device-specific authentication
• Use the device associated with the primary identity to trigger each additional device-specific authentication
• Link each device to the primary digital ID
Key use cases for orchestration are:
• ODSA
• Temporary eSIM subscription activation
• Other use cases beyond consumer eSIMBusiness white paper Page 11
Here we describe each of these orchestration use cases.
On-device subscription activation
This is the use case for straightforward on-device activation, where there is no need for QR codes, customer service
calls, or visits to the service provider’s point-of-sale.
Orchestration makes any new subscription activation dramatically simpler for both the carrier and the consumer.
Most importantly, it makes eSIM activation easy by creating one nearly continuous flow and helping eliminate
the need for the subscriber to perform double logins, use QR codes, open a new browser on a PC, or follow
complicated instructions on the phone with customer service. The whole process is performed with an app on the
device—typically, a smartphone—that is easy to use and that can be carrier-branded to reinforce a long-term sticky
relationship across all of a subscriber’s devices.
And the app is extensible to support additional use cases.
eSIM subscription activation
On-device eSIM subscription activation is useful in several situations, but one of the most common is setting up a
new device. That device may need a new subscription or may get a subscription transferred from an old device. In
both cases, the subscriber can activate the eSIM on the device using an on-device app, avoiding trips to a shop or
calls to customer service. The entire process is facilitated on the device thanks to a carrier’s orchestration platform.
The on-device app provides a carrier-branded experience right on the device thus allowing the carrier to maintain
brand presence even though the consumer has not gone into a shop.
Consumers benefit from ODSA by
• Having the ability to set up a new device right out of the box at home
• Being able to transfer an old subscription and profile or set up a new one easily
By making the process user-friendly, the carrier’s app can increase subscriber satisfaction and reduce costly churn.
Other cases beyond consumer eSIM
Increasingly digital identity business models are emerging that go far beyond consumer eSIM. Additional use cases
that extend the services of the primary phone via a federated digital identity are proliferating everywhere including:
• Non-SIM devices, for example, smart speakers.
• New kinds of SIM/eSIM devices such as connected cars.
• Enterprise domains, where employee bring your own devices (BYOD) or eSIM devices are subject to mobile device
management (MDM) and need to have a digital identity that can be associated not only with a primary device but
also with other devices and security parameters, available services, and so on.Business white paper Page 12
SIMPLER ACTIVATION AND SECURE ACCESS
AUTHORIZATION ARE ESSENTIAL
As eSIM devices proliferate with clusters anchored to every mobile handset or smartphone subscription, the need
for simple activation will become overwhelming. In parallel, there will be increased awareness of the need to secure
every personal subscriber ID and control every associated application access. eSIM offers robust on-device security
since the eSIM can be used as a root of trust that is automatically authenticated and authorized for valid applications.
Authentication, entitlement, and orchestration for every device type is needed not only for subscriber ID authentication
and rate plan authorization but also for secure access to the relevant device associated applications—wherever they are
on the internet, in the cloud, or on a private portal. And subscribers will soon demand to be able to independently:
• Provision new devices and applications through a smartphone app or client that interfaces to complex device APIs
• Set up every device-type both locally and when roaming globally via Telco cloud
• Activate (or cancel) services anywhere on-demand
Digital ID delivers these capabilities
Communications service providers (CSPs) need to see digital ID as the key to turning eSIM from a threat to an
opportunity.
Figure 6 indicates how digital ID allows CSPs to address each eSIM threat and turn it into an opportunity.
eSIM threats to CSPs Digital ID enables positive CSP response
Loss of loyalty that used to come from SIM lock-in Increased loyalty with the simplicity of user-controlled multidevice
enablement
Increased churn, as switching service providers becomes too easy Profile stickiness with multidevice enablement
On-device promotion and eSIM activation triggers: On-device promotions and cloud apps easily leverage CSP digital
• Cloud player control through apps ID management to:
• Commoditization of services • Help ensure regulated data storage and security requirements
• Race to the bottom on pricing • Meet personal and government privacy requirements
• Allow users to have multicloud access
Loss of customer relationship Service features or apps instantly enabled for every device to:
• Upgrade service(s) rapidly
• Instantly extend/synchronize apps to other devices
• Enhance CSP brand awareness
Source: Strategy Analytics
FIGURE 6. eSIM threats become digital ID opportunities
Specific opportunities created by the adoption of digital ID process are summarized in the right column of Figure 6.
Not only does digital ID enhance customer loyalty through its simplicity, thereby creating a sticky service for
multidevice subscribers, but it also discourages the cloud hyperscalers from going over the top (OTT) by resolving
regulatory and privacy issues. And it reinforces the customer relationship with responsive service upgrades and
application synchronization that simultaneously reinforce CSP brand awareness.
CSPS ARE UNIQUELY POSITIONED TO DELIVER DIGITAL ID
As eSIM devices proliferate and OTT cloud competition heats up, CSPs should consider early adoption of digital
ID solutions to enhance customer loyalty, reduce potential churn, and ensure they capture the types of on-device
promotions that allow them to maintain close customer relationships with minimal churn.Business white paper
If implemented well, digital ID can allow CSPs to be viewed as fully trusted neutral third parties that comply
automatically with regulatory and privacy controls on the user’s behalf, while the cloud hyperscalers continue to
evade regulation and leverage private consumer data as an inherent part of their business model.
CSP digital ID software platforms must also meet zero-trust requirements to protect every item of user data and
applications throughput with:
• Authenticated user device and service access
• Entitlement validation of subscription and rate plan
• Seamless, user-transparent orchestration of complex administrative processes
Any digital ID solution needs to be built on those three essential building blocks—authentication, entitlement, and
orchestration.
The next white paper Digital ID: Functions and Building Blocks describes how these can be implemented.
ABOUT COMMUNICATIONS AND MEDIA SOLUTIONS, HEWLETT PACKARD
ENTERPRISE
HPE has over 30 years of experience in the telecom industry, with more than 300 telco customers across 160
countries. In the core, more than 700 million subscribers across more than 80 carriers depend on HPE Mobile
Core software. HPE’s open telco solutions help operators evolve their networks and services to a 5G-ready, cloud
native, service-based architecture. As the edge-to-cloud platform-as-a-service company, our experience in hybrid
cloud allows us to bring the cloud transformation and secure, carrier-grade, standards-based infrastructure to
telecommunications networks. HPE was recognized by Frost & Sullivan with the 2019 Leadership award for
Global 5G Infrastructure Enabling Technology.
Hewlett Packard Enterprise is the global edge-to-cloud platform-as-a-service company that helps organizations
accelerate outcomes by unlocking value from all of their data, everywhere. Built on decades of reimagining the future
and innovating to advance the way people live and work, HPE delivers unique, open, and intelligent technology
solutions, with a consistent experience across all clouds and edges, to help customers develop new business models,
engage in new ways, and increase operational performance.
ABOUT STRATEGY ANALYTICS
Analytics provides strategic and tactical support to global clients across the market and product lifecycle including
consulting projects and white papers. Feel free to contact the author srudd@strategyanalytics.com with any questions
on this report or for further details on how we can assist you.
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