The government instructed departments to develop a plan for the legalization of eSIM technology in Russia

Deputy Prime Minister of the Russian Federation Maxim Akimov instructed the Ministry of Telecom and Mass Communications, together with the FAS, FSB, telecom operators and the expert community, to prepare proposals on the regulatory framework for the legalization of eSIM virtual SIM card technology in Russia by January 15, 2020. The Kommersant newspaper writes about this.

The eSIM module built into a smartphone, tablet or smart watch replaces the usual SIM card: the owner of the device receives the number by scanning a QR code received from the operator or through the operator’s mobile application. In Russia, smartphones with eSIM support include Apple's iPhone XR, XS and XS Max, as well as, for example, Google Pixel 3 and Pixel 3 XL. Solutions for remote eSIM initialization are being developed around the world by Gemalto, Idemia, Ericsson, GigSky, Samsung, Nokia HPE, Huawei, China Telecom and others.

The FAS confirmed that the government has sent an instruction to study the eSIM issue. “We consider the introduction of eSIM to be very important and timely; it will be a significant tool for developing competition in the market, and therefore improving conditions for consumers,” said Elena Zaeva, head of the FAS Communications and Information Technology Regulatory Department.

Maxim Akimov’s order is based on a report prepared by the Internet Research Institute (IRS) together with the Ministry of Telecom and Mass Communications, the Federal Antimonopoly Service and operators in June of this year. It said that eSIM chips are produced abroad, and profile loading platforms are also exclusively foreign. This means that eSIM cryptographic keys are stored outside the Russian Federation, and their safety cannot be guaranteed. According to the authors of the report, the initialization of eSIM chips should be carried out in Russia. In addition, it is necessary to place servers of platforms for loading eSIM profiles on the territory of the Russian Federation, and manufacturers of devices with eSIM and platform developers should open representative offices in Russia and obtain the necessary licenses.

As MegaFon noted, the introduction of eSIM in Russia is problematic without solving organizational, legal and technical problems, as well as security issues. Tele2 clarified that one of the main issues is the ability to remotely connect subscribers using eSIM technology. VimpelCom pointed out the need to legislatively work out the issue of remotely concluding an agreement with a subscriber. MTS reminded that it is necessary to determine the rules for changing the profile as part of the number transfer procedure and ensure the import of certified devices with eSIM to Russia.

According to III CEO Karen Kazaryan, to solve problems with eSIM, first of all, it is necessary to solve the problem of interaction between telecom operators and manufacturers of devices with eSIM and owners of identification platforms. This will remove the issues of applying security standards and cryptographic protection. Kazaryan added that the use of domestic cryptography in eSIM is hardly feasible, but it is necessary to localize identification systems in Russia.

Let us recall that in March the Ministry of Telecom and Mass Communications reported that they were developing the necessary regulatory framework for the introduction of virtual mobile card technology in Russia, but in early April it became known that the FSB was opposed to the introduction of eSIM in Russia (due to difficulties with the use of domestic cryptography), and operators The Big Three (MTS, MegaFon and VimpelCom) are wary of the technology due to a likely decrease in revenue due to its launch. Later, the media reported that Rostelecom, Tele2 and other operators are testing or preparing to test eSIM.

At the end of April, Tele2 announced the introduction of eSIM into pilot commercial operation. 5 thousand special QR codes were issued for subscribers who wanted to test the new technology, but their first batch ran out in several Moscow Tele2 stores in a matter of hours. In mid-May, it became known that the company had suspended issuing QR codes to interested subscribers for testing the technology at the request of the Ministry of Telecom and Mass Communications, and a few days later a message appeared that Tele2 and Rostelecom would continue to test eSIM in Russia.