IoT Devices to Have Permanent Roaming Capability: A Regulatory Hurdle Overcome?

In the rapidly evolving world of Internet of Things (IoT) connectivity, understanding and complying with regulations has become a crucial aspect for providers and enterprises alike. Transforma Insights, a leading research and consulting firm, has been at the forefront of this exploration, delving into the intricacies of various standards and their implications.

In their June 2024 Position Paper 'Key considerations for Enterprises looking to adopt SGP.32', Transforma Insights provides a comprehensive analysis of the capabilities and considerations of this standard, which allows for easier recredentialling of SIMs to local profiles, facilitating compliance with permanent roaming regulations.

Permanent roaming, or the use of E.164 numbers in multiple countries, is a relevant set of regulations for IoT connectivity. However, the compliance landscape varies across regions. In the EU and US, compliant connectivity is universally available, while in Brazil, China, India, and Turkey, regulators have introduced or enforced rules against permanent roaming, often due to market protection and local rule enforcement.

For instance, Turkey's strict rules about localisation are causing significant friction, making it hard for many providers to support connectivity in that country. As of July 2024, there are no publicly available indications that any Cloud Service Providers (CSPs) have developed compatible solutions to circumvent these rules for IoT devices permanently located in Turkey.

On the other hand, Brazil is now well addressed by almost all Communications Service Providers (CSPs) regarding permanent roaming regulations. China continues to present some challenges, but CSPs can work with Chinese Mobile Network Operators (MNOs) to support compliant connectivity. The compliance situation in India is in flux due to ongoing changes to eSIM localisation requirements.

In July 2024, Transforma Insights published a report analyzing the capabilities and strategies of 25 leading IoT connectivity providers, assessing their approach to providing compliant connectivity for permanently located devices in six countries/regions.

However, the provision of compliant cellular-based IoT connectivity will need to be delivered as a managed service, with a focus on removing localisation and compliance friction. Enterprises may still need someone to negotiate commercial relationships with appropriate network operators for connectivity and act as a single point of contact.

Moreover, commercial equivalents, such as operator prohibitions in the US and Canada, also exist to limit permanent roaming. The Transforma Insights report 'Regulatory landscape for the Internet of Things' analyzes regulations affecting IoT deployments and connectivity in detail.

In conclusion, IoT connectivity providers have made significant strides in addressing the challenge of permanent roaming over the last decade. Yet, the ever-changing regulatory landscape necessitates continuous monitoring and adaptation to ensure compliance and smooth operations.