IoT Roaming in the 5G Era

Madrid, 29 November 2023.-. – As the market moves into the 5G era, much of the status quo surrounding IoT connectivity is set to be disrupted. Cellular technology convergence with satellite communications systems is now on the horizon, while technology enhancements will change customer expectations of service providers’ capabilities.

A complex IoT ecosystem

IoT has long been understood as a complex environment for customers to navigate. However, it is notable that developments in the market mean that service providers relying on a relatively simple model for supporting IoT connectivity through domestic and roaming coverage will gradually be left behind.

From an enterprise perspective, multi-country connectivity is essential: according to Kaleido Intelligence’s survey data, only 8% of cellular IoT adopters have no need for any international connectivity support.

Figure 1: International Connectivity Requirements among IoT Verticals 2023

Several market forces are coming into play that will alter the IoT roaming landscape: on the one hand, satellite communications are supported natively by cellular devices via the Non-Terrestrial Networks framework established in 3GPP’s 5G Release 17, with enhancements due in Release 18. This will require new wholesale roaming agreements to be established, and heralds a new era for global-scale asset tracking and monitoring applications within domains such as agriculture, logistics and maritime sectors.

Above all, enterprise customers demand flexibility from their connectivity solutions: this means addressing the capability to optimise connectivity based on cost, performance or reliability via roaming agreements, eSIM profiles, as well as local or regional breakout services as required.

eSIM matures

The publication of the GSMA’s IoT specification for eSIM will see initial deployments under the new specification roll out from 2024. This will signal a new era for eSIM, lowering the barrier to entry for mobile service providers as well as OEMs, introducing a new competitive environment. Critically, the specification, in conjunction with work by the Trusted Connectivity Alliance, aims to address the full spectrum of cellular IoT device types via new transport protocol support and ‘lightweight’ eSIM profile types.

Figure 2: IoT eSIM Shipments, 2019 & 2028

This new environment signals an opportunity to scale IoT up based on a standardised solution for long-term risk avoidance, while also offering MNOs the ability to enhance their retail and wholesale IoT offerings, either via direct eSIM support for IoT, or through the distribution of appropriate profiles to partners. In future, many of the features associated with control and flexibility over consumer eSIM profiles will be enabled in the IoT domain, allowing operators to streamline eSIM inventory and management activities.

Market challenges and expectations

While the market is rife with opportunity, there are inevitable pitfalls to navigate in order to deliver best-in-class services. 

The maturation of LTE and 5G networks will signal the end of the road for 2G and 3G networks, meaning that VoLTE roaming capability will be an essential component of the service offering. eCall services in vehicles, in addition to smart building and security solutions rely heavily on voice communication enablement.

The expanding number of cellular IoT devices means that network security will become more important than ever, particularly in the IP, API-driven 5G era. 85% of enterprises view cellular IoT security risks as a pain point for their business, which will require service provider security solutions to mitigate risks: in this context, VPNs and private APNs must be viewed as only a single layer of security, and not a catch-all for cellular IoT security. 

Figure 3: Enterprise IoT Top Security Concerns, 2023

Meanwhile, enterprise sophistication demands transparency for IoT operations, which in turn means that careful monitoring of connectivity management platform performance, roaming partner network performance as well as transparency over any eSIM over-the-air campaigns will become an expectation. Quality of service, at the platform as well as connectivity performance level, will grow in importance during the 5G era.

Finally, monetisation and approaches towards IoT monetisation will change fundamentally as 5G ramps up. Most crucially, BCE (Billing and Charging Evolution) will be required for 5G wholesale roaming monetisation, offering far greater efficiency and flexibility when compared to its TAP (Transferred Account Procedures) counterpart. The need for BCE is already being seen in the market for use cases such as NB-IoT and LTE-M roaming. Meanwhile, some operators currently apply charging models that must be manually added to the TAP framework, but could actually be automated and applied natively within BCE.

Figure 4: Operator Perception on TAP to BCE Migration, 2023

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It is clear that the roaming ecosystem is evolving, with new demands on operators, but with change comes new opportunities too. Currently we see two clear trends in the market where TGS can help our customers.

For those customers looking for a fully or partially hosted solution, our Global Connect Hub solution is a one-stop shop for roaming connectivity – one connection, one platform, global coverage and multiple donors. It enables MVNOs and IoT Providers to quickly, securely and cost effectively increase roaming coverage through a single connection, eliminating the need to sign roaming agreements with multiple operators or to have agreements with different IMSI donors to achieve global connectivity. Importantly it also addresses the specific, and often complex, challenges related to IoT Roaming in different regions across the globe, such as providing permanent roaming options where required, whilst ensuring the best customer experience.

For those customers looking to speed up the service opening in order to be ready on time, we provide our service opening solution, which requires no integration and allows you to radically speed up the process of opening services with your roaming partners.

In both cases, we can take away the complexity of achieving the roaming connectivity you need as well as supporting the demands of your customers’ IoT applications.

At TGS our solutions are already adapted for 5G Non Standalone and we have started to trial 5G Standalone for some of our roaming services, so we are well placed to help you take advantage of the opportunities brought about by the 5G era. We’re also leading the way with IoT Roaming initiatives having participated in a ground-breaking proof of concept with the Global Leaders’ Forum and 3 other carriers, which proved the technical feasibility of low latency data roaming required by critical IoT applications.

Talk to us to discover how we can help you take advantage of the increase in IoT Roaming to boost your business.

Interested in implementing your own proof of concept? Click HERE.

By Kaleido Intelligence