Transforma Insights Study Provides a Reality Check on the SGP.32 Standard

Transforma Insights has published its free Transition Topic Position Paper, sponsored by Eseye, ‘Key considerations for Enterprises looking to adopt SGP.32’. The SGP.32 (IoT) standard for Remote SIM Provisioning was unveiled in May 2023, promising a more streamlined and user-friendly mechanism for enterprises to manage the connectivity on their cellular devices.

However, as explained in the report, it is not, on its own, a magic wand that can be used to provide unlimited access to every network seamlessly. The truth is more complicated.

The key findings of the report are:

• SGP.32 as a standard will be widely adopted. As an evolution on the previous SGP.02 ("M2M") and SGP.22 ("Consumer") standards, SGP.32 (“IoT”) certainly represents several steps forward, resolving many of the technical limitations on supporting constrained devices and offering a simplified mechanism for handling switch-over of connections between operators. But that is just one element of the story.
• True SGP.32 capability will be available from 2025. Any nominally SGP.32 solution today is not based on fully interoperable standards, and pre-standard versions will only be of limited appeal due to a lack of universal support.
• SGP.32 does not solve all the challenges of deploying multi-country IoT connectivity. Commercial contracts need to be negotiated with network operators, and back-end processes and settings need to be updated to reflect a change of connectivity provider. It's not as simple as flipping a switch and changing from operator A to operator B.
• SGP.32 will generally have to be offered as a managed service as part of a portfolio of offerings. Very few enterprise customers will be inclined to try to manage the functionality of SGP.32 themselves. Therefore the SGP.32 functionality will be accessed via an orchestration layer provided by connectivity providers. It will most obviously be offered as part of a range of options that also include roaming, multi-IMSI, and SGP.02.
• A roadmap to SGP.32 is required for implementation today. Because the technology itself is not available for deployment until 2025, potential users will want to make use of an alternative (such as SGP.02) until SGP.32 is available and will need to rely on a connectivity provider to provide a seamless migration.

Commenting on the report, author Matt Hatton said: “The SGP.32 standard has a lot to recommend it. It irons out many of the creases from the prior standards. However, there is a very significant risk with SGP.32 that the real (and perceived) benefits will blind enterprises to the realities of the intricacies of managing the overall IoT solution deployment and the requirements for a migration path to get there.”

Nick Earle, CEO of Eseye who sponsored the Position Paper, says “Enterprises still have a lot of key considerations to make before deciding how and when to adopt SGP.32. The transition will take time and there are many factors to take into account to deliver 100 percent global connectivity. With Eseye’s deep understanding of the RSP landscape, we know how important it is, as underlined in Matt’s report, to offer customers a choice of SGP.02 as well as SGP.32. Plus a managed service to help with the transition, orchestration, and MNO management as soon as the GSMA ratifies the SGP.32 standard.”

About the Position Paper

The Transforma Insights Position Paper, sponsored by Eseye, examines the new SGP.32 ("IoT") standard for Remote SIM Provisioning (RSP) and how enterprises should be considering its use. This report starts with a brief background on eSIM and remote SIM provisioning, with a particular focus on how SGP.32 is an improvement on previous standards, and an examination of the key features of an SGP.32 solution.

The main focus of the report is on addressing some of the myths and misunderstandings associated with the technology. It provides a much-needed reality check on the limitations and availability of SGP.32 and considers how SGP.32 fits into a portfolio of managed connectivity.

The report is free to download here: ‘Key considerations for Enterprises looking to adopt SGP.32’.

Transforma Insights has published a range of reports looking at the eSIM and remote SIM provisioning landscape, including the following report available to subscribers to our Advisory Service: ‘What does SGP.32 ‘IoT’ remote SIM provisioning mean for how cellular IoT connectivity is delivered?’.

About Transition Topics

Transforma Insights has identified a series of aspects of the Internet of Things that are going through a period of fundamental transformation. These IoT ‘Transition Topics’ are the subject of Position Paper reports and Virtual Briefings identifying the key aspects of change and how organizations should position themselves to be best placed to realize the opportunities generated.