SIMless M2M Strategy

For all operators that are counting on selling a lot of SIMs for M2M, they might have to think again. Yes there will be M2M devices that will incorporate a SIM but they probably will be the exception.

WiFi and other free standards are a lot more likely choice for device makers then SIM-based solutions. Costs of incorporating and managing a large SIM-based deployment are high. Industrial, retail, medical, consumer, etc. markets are more likely to accept WiFi-based solutions since they often already have WiFi deployed.

Designing a SIMless M2M Strategy

In addition to any SIM-based M2M strategy, operators should also design a SIMless M2M strategy. Operators are experts at deploying, managing, monitoring and maintaining  millions of data streams and devices. These core competences are not readily available in other industries. Operators should understand the customer pain points and work together on industry-specific solutions. Hosted M2M management solutions, and especially cloud-based, can become a lot bigger revenue stream then selling SIMs at rock-bottom prices. The telecom industry is uniquely positioned to span multiple industries and offer a base platform on which niche players can build up their business. Also the support business (monitoring, call centers, field force management, SLAs, etc.) should form part of the SIMless M2M strategy. Since data volumes are likely to skyrocket over the coming years, network as a service will be vital. Dynamic routing of data, loadbalancing on demand, fail-over, securing access to devices, quality of service, etc. can all be offered as part of a M2M network as a service offering.

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