Demand for additional memory creates opportunities for HC SIMs
“With more memory, there will now be new services to offer to the end-user and MNOs will need to have the right content,” notes Frost & Sullivan research analyst, Nikita Seth. “At the same time, the market will have to be ready with handsets that support such cards.”
HC SIMs are crucial for the success of MNOs and their services, he adds. They are the technological innovation that is expected to offer much more than the conventional SIM card, he says.
The features and functionalities of the traditional SIM card have evolved over the time. With higher memory to offer, the SIM has now become an indispensable token for mobile network operators (MNO). While the hype for such cards has been on for a while now, it might be a slightly longer wait before mass-market deployments appear.
Replacing SIM cards with HC memory cards involves huge costs. The extra memory capacity on the multimedia SIM card will directly affect the SIM card pricing. The cost of flash memory ranges from $5 to $15 depending on the memory size, and, additionally, securing and personalising the flash memory will be cost-effective, he states.
“In such a situation, MNOs will need to be confident about the return on investment through this product,” says Seth. “Clearly, it will be a worthwhile consideration only if it is able to drive the usage of content and new services as well as increase their ARPU amounts.”
The different participants in the ecosystem will need to work together in order to promote and develop this new product, he adds. Deployment of this solution is certain, however, the exact time and mode remain a question at present.
MNOs should have clear tariff models designed for such cards and decide whether they will charge end-users a one-time payment or adopt monthly tariffs or supplementary fee for additional downloads, he concludes.
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