SIMAlliance: The Evolving Secure Element Conversation

The Evolving Secure Element Conversation Frédéric Vasnier, Chairman, SIMalliance

25 June 2013

Introduction and Welcome Global Market Overview Opportunities and Challenges Recommendations

Securing the Future of Mobile Services 3

Security, Identity, Mobility

SIMalliance: Who we are

SIMalliance members represent approx 90% of the global SIM market and deliver

the most widely distributed secure application delivery platform in the world (UICC/SIM/USIM).



What we do…

SIMalliance is the global, non-profit industry association which simplifies

secure element (SE) implementation to drive the creation, deployment

and management of secure mobile services.

SIMalliance:

> Promotes the essential role of the secure element (SE) in delivering secure mobile applications

and services across all devices that can access wireless networks.

> Identifies and addresses SE-related technical issues, and clarifies and recommends existing

technical standards relevant to SE implementation.

> Promotes an open SE ecosystem to facilitate and accelerate delivery of secure mobile

applications globally.

> Monitors the market and produces market data reports.



Welcome to…



2012: Continued growth globally

SIMalliance 2012 shipments:

4.6 billion

2012 Total Available Market:

5.1 billion*

Growth in SIMalliance

shipments (2011 to 2012):

+6%

TAM Growth (2011 to 2012):

+9%

SIMalliance shipment volumes in M units

*The footprint of SIMalliance members represents

approximately 90% of the TAM. 0

1000

2000

3000

4000

5000

6000

2005 2006 2007 2008 2009 2010 2011 2012

SIMalliance figures

Total Available Market (TAM) figures



Global context

Faltering economic

conditions in many

markets

Mature mass volume SIM

market in many

developed countries

Increased regulation on

basic SIMs and MNOs in

many regions (e.g. India, South America and

Asia)

Increasing demand for

NFC

There is good news…The SIM market continues to enjoy growth of 6%



2011-2012: Growth across most markets

164M to 216m = +32%

North America

440M to 441m = +0.2%

South America

414M to 450m = +9%

Europe

2.417bn to 2.482bn = +3%

Asia

217M to 229m = +6%

CIS

287M to 307m = +7%

Middle East

415M to 499m = +20%

Africa

4.4bn to 4.6bn = +6%

Globally



2012: Market specific growth drivers

Asia

• Strong growth in North America (+32%); transition from CDMA / late migration to LTE SIM-based networks.

• 11.5% decline in Brazil. Impact of regulation: decreased number of handsets per person.

• Growth across several countries led to 3% total growth in region.

India, Japan/Korea, Pacific Asia are all slightly growing in volume.

China has witnessed a decline.

• Country specific growth factors:

Inventory problems in China have resulted in lower SIM card volumes

In India, regulation requires physical proof of ID to be shown to obtain a prepaid SIM. This has impacted uptake. (Effect seen

previously in Indonesia).

70% of Japan/Korea’s shipments are 3FF/4FF. Booming LTE and NFC markets.

• Strongest growth resulting from high-end SIM shipments due to new technologies being launched

(primarily Japan/Korea and Pacific Asia).

Americas



Europe

CIS

Middle East and Africa

2012: Market specific growth drivers

• Healthy growth in Western Europe (11%) considering market maturity.

• Highlights growth in NFC and LTE based shipments within developed markets.

• Sensible growth (6%).

• 20% growth in Africa reflects reliance on phone handsets for access to internet / bank accounts and to

act as a payment vehicle.

• Growth in Africa linked to penetration / subscriber acquisition (Africa still has lowest penetration

worldwide) and prepaid.

• Growth in Africa covers both low end / high volume and more advanced SIMs.



Opportunities and challenges

• The heaviest migration to nano SIMs has been in North America, Western Europe and Asia.

• There has been a sharp decline in the plug-in market in Europe.

Increase in connected smart devices (phones and tablets),

stimulating demand for 4G SIM products, as LTE and NFC drive

mobile services forward. OTA over HTTP now a possibility.

• 30m NFC shipments in 2012; 87% YoY increase (23m Asia, 6.5m Europe, 0.25 MEA, 0.1 North America).

High profile NFC deployments now moving beyond trial e.g. ISIS

launch, Cityzi etc.

• Future mobile subscriber growth will be driven by 1.8bn ‘unconnected’ people in rural areas globally (to 2017).

• Subscriber penetration across developing economies to increase from 39% in 2012 to 47% in 2017. This will be the largest factor spurring global growth of mobile until 2017.

Vast potential for market growth in developing countries

(Source: GSMA Wireless Intelligence research, October

2012):

New applications and use cases




Growth in OTT players in the mobile payments space are seeking and deploying MNO independent and alternate SE Form Factors e.g. Google Wallet (eSE).

Established M2M market with steady growth and no saturation point; not limited by population penetration.

Increasing range of M2M applications across verticals.

Many customers are using standard SIM cards; specific products needed designed to be in line with market needs.

IDC predicts the worldwide smart connected device space will continue to surge with shipments surpassing 2.2 billion units in 2017.

5 million SIMalliance MFF2 shipments in 2012 (42% year on year growth).

New players / comers

The rise of the machines: ‘Internet of Things’ (IoT)




Likely changes to the market in the foreseeable future?

– Rapid development of potential secure applications / use cases in line with progression of

LTE and NFC; SE enables secure ID provision.

– Utilising NFC beyond payment : retail, access, transport etc.

– Operators will continue to deploy high-end SIM products and an advanced SIM-based

infrastructure (LTE SIM card and OTA platform over HTTP) as they migrate to LTE (to take

advantage of the opportunity to offer upgraded services).

– Continued growth in number of connected smart devices driving high-end (nano) SIM

shipments.

– More specialist products will cater for the growing M2M market.

• Potential for increased rate of growth of M2M market in coming twelve months.

• Smart cars and smart grids driving growth of M2M.

– Battle of the wallets:

• Driving growth in alternate SE form factors.

• Diversity and high number of payment schemes available on mobiles is a technical challenge for wallet

providers (integration) .



SIMalliance: Creating opportunities for market growth

UICC LTE Profile

• A collection of requirements for optimal support of LTE/EPS networks by UICC.

• Widely utilised by North American MNOs.

UICC Device Implementation Guidelines

• Outlines fundamental and optional UICC features device vendors need to support to optimise UICC interoperability in future devices.

Stepping Stones Documents

• Best practices for development of interoperable applications (USIM, NFC, SE).

SIMalliance members are well placed to deliver key services associated with eUICC deployment (e.g. data

preparation and subscription management services).



> Open Mobile API

– Standardised way to connect mobile apps with all SEs on a

device (SE form factor neutral) including a service layer to

provide a more intuitive interface and increasingly powerful

functionality.

– Enables delivery of highly secure business and consumer

mobile applications across all SE form factors.

– Referenced by GSMA (NFC Handset & APIs Requirements).

– Open Source implementation (Seek-for-Android).

– Implemented in more than 100 models of Android (NFC) Smartphones

Open Mobile

API

A

P

P





GlobalPlatform Collaboration

– Combine the filtering technology of GlobalPlatform (known as SE access control) with the

Open API, to deliver a complete solution for handset manufacturers.

GSMA Collaboration

– Promote an open and interoperable eUICC.

– Work to define not only the eUICC but the whole infrastructure (relevant to M2M) and the

different roles in the (open) ecosystem.

IEEE Collaboration

– Mobile and internet authorities working together to promote development of an open

ecosystem that will support future industry convergence.

– Potential opportunities for secure connections in Internet of Things (IoT), MobileHealth and

mobile ID markets are vast.



Key recommendations:

SE’s capability relative to post-

issuance activation and updates;

Highly secure platform provided by the latest generation

of SE;

Capabilities offered by LTE and NFC;

Growing ubiquity of connected smart

devices (tablets and phones);

The combination of the:

…results in vast potential for the exponential development of applications and use cases which

utilise the SE, across all sectors (not just payments).

SIMalliance members are well positioned to provide both the physical

token (SE) and support the whole infrastructure and associated services.



Key recommendations:

To optimise growth of the market:

Application and OS developers, handset vendors, MNOs and all players

within the ecosystem MUST work together in an open environment.

We look forward to furthering these efforts here at SIMposium Global!

SIMalliance is working to facilitate this by:

Documenting interoperability

Engaging in industry collaborations

Encouraging global promotion and debate



Website resources

www.simalliance.org/resources

* • UICC LTE Profile

* • UICC Device Implementation Guidelines

* • Open Mobile API

* • Stepping Stones Documents

Thank You and Q&A

@SIMalliance

www.simalliance.org

[email protected]

http://twitter.com/simalliance

http://www.linkedin.com/groups?gid=2175999

http://www.simalliance.org/

mailto:[email protected]

SIMAlliance: The Evolving Secure Element Conversation

Technology

Transcript of SIMAlliance: The Evolving Secure Element Conversation