Russian telecom operators have started testing domestic M2M SIM cards for IoT (Internet of Things) - Zelenograd Micron intends to start mass production of them, including chips, in 2024, and in the future — NM-Tech.
According to Kommersant, Russian telecom operators have begun testing domestic M2M SIM cards for IoT (Internet of Things) - their mass production, including chips, is going to begin in 2024 by Zelenograd "Micron", and in the future — "NM-Tech". Micron expects a market of "several hundred thousand" cards, while the total fleet of such cards in the Russian Federation is 35.5 million units and is growing. Experts believe that demand will be stimulated by government projects, including the use of domestic SIM cards on networks where data security is important.
In December, MegaFon, MTS, Vimpelcom, as well as "a number of specialized companies" will receive samples of Russian M2M SIM cards for testing, the Ministry of Industry and Trade told Kommersant. We are talking about SIM cards for machine-to-machine interaction used in smart home IoT devices, industry, ATMs, etc., which are characterized by low power consumption and low data transfer volume. The ministry clarified that the SIM cards were developed using state subsidies.
Chips for SIM cards will be produced by Micron, the plant intends to start selling them in 2024, in the amount of "at least several hundred thousand".
The Ministry of Industry and Trade clarified that it is also planned to package SIM cards at Micron, but "other enterprises are also possible."
In 2024, the certification of cryptographic information protection tools for chips in a SIM card will begin, the ministry added.
Micron did not respond to Kommersant's request. An interlocutor of Kommersant, close to the company's management, explained that the plant had to "adjust existing technological processes" to organize the production of chips and SIM cards. NM-Tech will also produce chips, said Vasily Shpak, Deputy head of the Ministry of Industry and Trade: "It is planned to develop a wide range of microelectronic products there. We want to do a lot of things, including SIM cards."
The fact that the Ministry of Finance, telecom operators and Russian semiconductor companies are discussing the prospects of launching the production of chips for SIM cards became known in the spring (see Kommersant on May 12). MegaFon confirmed to Kommersant that they have already received samples of M2M SIM cards and are testing them: "Now MegaFon uses M2M SIM cards from several manufacturers, while we are open and ready to consider proposals from domestic enterprises." MTS, Tele2, Rostelecom, Er-Telecom and Vimpelcom declined to comment.
Analysts call the M2M SIM card market small but growing.
Thus, a March study by TelecomDaily says that by the end of 2022, the four largest telecom operators — MTS, MegaFon, Vimpelcom and Tele2 served 35.5 million such SIM cards (an increase of 20% year-on-year). Experts estimated the market volume in money at 11 billion rubles (an increase of 24% year-on-year). By the end of 2023, TelecomDaily predicts a slowdown in growth to 11% in units and 9% in money.
Director of the Technology Practice of Trust Technologies (formerly PwC) Yuri Shvydchenko assumes that in 2024 the segment will grow by about 20% in kind: "One of the possible new incentives may be the distribution and use of M2M SIM cards by individuals, for example, in smart home systems."
Kirill Kucherov, Director of the Department of Telecommunications Services at J'son & Partners Consulting, believes that "if the state subsidized R&D in this area, then it also counts on the appearance of SIM cards that can be used on networks where information security is important." Judging by the preliminary roadmap of the national project "Data Economy", the authorities really have large-scale plans for the introduction of IoT technologies. In particular, it is planned to expand and centralize intelligent video surveillance systems throughout the country, create a predictive IoT platform for managing production processes at enterprises, introduce Internet of Things devices in housing and communal services, as well as develop and launch similar projects in the field of road management, medicine and weather monitoring.