The development of eSIM technology has become one of the drivers of the IoT market, both in Russia and around the world. The network of IoT devices, which have a traditional or built-in virtual (eSIM) SIM-card, differs from GSM, 3G and 4G networks by its lower power consumption. For this reason, this network is optimal for smart city systems.

According to GSMA, the number of new types of eSIM equipment in the world is increasing by 50% annually and by the end of this year, the number of IoT devices with eSIM and with conventional SIM cards will be the same.

The lack of equipment and regulatory framework to regulate eSIM slows down the implementation of eSIM, so customers deliberately do not purchase IoT equipment with eSIM. In addition, the government plans to oblige Russian companies and departments to use only Russian IoT solutions in housing, fire and other security.

However, according to experts, this restriction prevents the introduction of IoT, because now there are no ready-made Russian platforms for virtual SIM cards on the market.

It is interesting to note that against the background of the development of the Industrial Internet of Things (IIoT) there is an increase in the introduction of private networks in the world. However, the market in Russia is still at an early stage of development compared to the world market. According to TelecomDaily the Russian market volume of private LTE-networks now amounts to about 21 million dollars, and about 30 public projects operate in the country.

Private LTE is implemented in places where for technical or other reasons there is no possibility to introduce fixed-line communication. For example, these are quarries, mines or enterprises, located in inaccessible areas. In Russia, the leaders in the introduction of pLTE technology are primarily large industrial enterprises.

Experts agree that private LTE networks will be more and more in demand among industrial enterprises and in the future, they will be more and more often used for the implementation of smart cities projects.