Embedding SIM cards into cars has had a troubled history. Vehicle manufacturers have deployed overly-expensive systems and services that customers in most markets have so far proved unwilling to pay for.

Much of the attention over the last 5 years has therefore shifted toward ‘brought-in’ strategies that rely on the driver’s smartphone for connectivity, which many within the automotive industry view as the only logical future for connected car mobile services.

A view-with-purchase-only report from ReportsNReports suggests an alternative long-term vision in which major changes within the telecommunications industry could lead to embedded SIMs becoming the predominant communication method for all connected car services.

In fact, by 2025 this research forecasts that ‘Brought-in’ strategies could become increasingly obsolete as every car is sold with an embedded SIM, facilitated by government mandates, new pricing models and a growing reliance on cloud-based content and services.

Of course, the vision for embedded SIMs relies on the telecoms industry embracing radical changes to their M2M business and revenue-stream models. Despite the necessity for these changes, many telecom operators may be reluctant to preemptively risk their existing M2M revenues in order to help turn embedded SIMs into a mass-market success.

The automotive industry would need to step in to help find a win-win solution to the embedded SIM challenge, one that will help bridge the gap between the needs of the automotive industry and those of the telecom industry so that service providers like Truphone and Maxroam can bring cloud-based content and services to their customers wherever they may travel and roam.

Photo courtesy of Automotto

  • Paul578

    Okay, I don’t get it. What would imbedded SIMs be used for?