'Indian operators are not aware of SIM security features'

With the GSM mobile subscriber base on the rise globally, SIM
card manufacturers are also bullish in their innovations and technology
developments. Thomas Haering, director business development, Mobile
Communications (worldwide responsibility) Chipcard and Security ICs, Infineon
Technologies shared his views with VOICE&DATA on where the SIM market is
heading in India and globally. Excerpts:

How has the SIM market grown in the past couple of years?

Globally the market has been witnessing a growth in line with
the rising mobile subscriber base. In 2004 almost one billion SIM controllers
were sold. This is expected to go up to 1.2 bn this year. Countrywise, China
hogs almost one-third of the SIMs absorbing almost 320-350 mn. India with 60-70
mn is ranked third. However, with the kind of growth happening here we expect
this number to rise and India being pushed to the number two position in 2006.

Thomas Haering, director business development, Mobile Communications (worldwide responsibility) Chipcard and Security ICs, Infineon Technologies

What is the relation between cost of a SIM and the
features being packed over it?

All SIMs come with some basic feature sets like elementary security and a
few other things. There is a direct relation between cost and features of the
SIM. The less you want to pay the less utilities would be available. However,
with China and India being two main markets globally, semiconductor companies
are under increasing pressure to deliver more features at lower cost. This is an
area where companies have to balance volume, cost, and features and still carry
on with their innovations.

Does this mean in cost-sensitive markets like India and
China low-grade SIMs are being shipped?

I would not say low grade but SIMs with low density and feature sets.
Moreover, India has been traditionally a feature follower rather than innovation
driver. While in other countries high-density cards are popular, India is still
to catch on to the 64 k SIMs. Similarly, in the Western countries SIM security
is a big issue and operators are driving manufacturers to add more security in
their products. India is lacking in operator-driven features. But we should also
keep in mind that all markets would not be the same. Some areas would be early
adopters at higher cost and in some the cost and entry barriers would be there.

How aware are Indian operators about SIM security and
related features?

I must admit that the awareness level among Indian operators is very low
when it comes to security over SIMs. May be because there has been no market and
consumer demand for these things. But they must realize that high-end features
like security are more important today than pricing. With mobile commerce
gaining ground and the handsets becoming more of a mobile office- threats like
fraud, cloning, branding, and IP thefts are high. Globally the market perception
of SIM security is very high but here we have to educate and create awareness in
the fields of certification and high-end security controllers.

What about the new companies entering the Indian market
and playing the price game?

Competition is always good. The Indian market still open and big enough for
all of us. Each company would come with new offerings, and the unique
requirements of this market would determine who stays and survives. However, in
the recent past there are many consumer goods companies who have entered the
market. They are offering chips similar to what are used in washing machines,
toys etc, which can be decoded because enough literature is present in the
market about them. Here again, security would be a key differentiator. Once
operators realize this, they would define the specifications and drive the
market. It is a matter of attitude rather than just cost. You need not go for
full set security features but can negotiate a certain level at the best price
points.

Anurag Prasad