The Internet of Things will be transferred to Russian chips
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Russian telecom operators have begun testing domestic M2M SIM cards for IoT (Internet of Things) – their mass production, including chips, intends to begin in 2024 by Zelenograd Mikron, and in the future by 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 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 IoT devices of the smart home, 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 government subsidies.
Micron will produce chips for SIM cards; the plant intends to begin selling them in 2024, in quantities of “at least several hundred thousand.” The Ministry of Industry and Trade clarified that it is also planned to package SIM cards at Mikron, but “other enterprises are also possible.” In 2024, certification of a means of cryptographic information protection for microcircuits in a SIM card will begin, the ministry added.
Mikron did not respond to Kommersant’s request. Kommersant’s interlocutor, close to the management of the enterprise, 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 Deputy Head of the Ministry of Industry and Trade Vasily Shpak: “They plan 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 Digital Development, telecom operators and Russian semiconductor enterprises 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: “Currently MegaFon uses M2M SIM cards from several manufacturers, and 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 states that at 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. (24% year-on-year growth). At 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), Yuriy Shvydchenko, suggests that in 2024 the growth of the segment will be about 20% in physical terms: “One of the possible new incentives could be the distribution and use of M2M SIM cards by individuals, for example, in smart home systems.”
Director of the telecommunications services department at J’son & Partners Consulting, Kirill Kucherov, 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 “road map” of the national project “Data Economy”, the authorities have truly ambitious plans for the implementation 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 roads, medicine and weather monitoring.
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