To design a connected device, you have to consider many variables—including the cost for materials, carbon emissions, and power budgets.
Fortunately, using SoftSIM in place of conventional plastic SIMs and SIM chips can result in new efficiencies.
Turning traditional SIM hardware into software is a part of industry 4.0 (aka the Fourth Industrial Revolution) disruption stemming from IoT. Digitizing cellular network authentication and reducing manufacturing costs, increasing battery life times, and reducing the carbon emissions from producing and distributing SIMs also represent a positive steps for sustainable development.
Let’s take a closer look at the IoT and eco-friendly SoftSIM and how it can streamline your IoT device design.
Table of Contents
What is a software SIM?
The Software Sim (SoftSIM) is a completely software-based SIM with no hardware component. It’s downloaded from the cloud onto an existing module on a device, where it co-exists with other applications.
The Onomondo SoftSIM acts like a SIM card or SIM chip (e.g. eSIM), but carries out the job by running a software program on the device’s existing hardware.
SoftSIM was created in accordance with GSMA guidelines. The SoftSIM is a library that can handle Application Protocol Data Unit (APDU) commands, which usually pass between the module and the physical SIM. In modules integrating SoftSIM, the commands are passed to the SoftSIM component instead. The SoftSIM component then manages access to key material and other files or assets, using the keys to authenticate the network and the device.
The SoftSIM offers many benefits for IoT designers, including the fact that it consumes no physical space, making it a great option for devices that need to be extremely small and lightweight. Not having a SIM on devices also saves power. Additionally, Onomondo SoftSIM gives users access to over 590 local networks worldwide, achieving global coverage without power-consuming eSIM or multi-IMSI logic on devices.
Currently, SoftSIM interfaces with a limited number of hardware configurations (see the current list of devices supporting SoftSIM), but that will c$hange as it goes into wider release.
Learn more: SoftSIM: How software is making the SIM card obsolete.
Reducing device bill of materials
Concern about the bill of materials (BOM) for a new device is top of mind for IoT designers and manufacturers.
The cost of installing a traditional SIM card or an embedded eSIM or iSIM ranges from 1–4€ per device. For large deployments of thousands or millions of devices, that number adds up quickly.
Because the SoftSIM removes the need for a physical SIM and subtracts one component from the manufacturing process, production becomes simpler and less costly. In fact, removing the physical SIM reduces a device’s SIM costs by up to 90%.
Removing the physical SIM from IoT devices reduces SIM costs by up to 90%.
The SoftSIM offers greater flexibility thanks to Onomondo’s commercial model—you won’t have to pay for a SIM until it comes into use. This reduces time spent managing SIMs between testing, deployment, and operation.
Finally, there are no shipping costs for SoftSIM. Digitization means there is one less component to worry about and frees up some of the planning involved for tight production deadlines.
Reducing the SIM card carbon footprint
The SoftSIM not only reduces device costs, but it also takes less of a toll on the environment.
SIM cards and chips are small, but they are produced in massive volumes. In 2022, over 4.3 billion SIM cards were produced globally (source: ABI Research), an astounding number when considering the chip shortage pressures of the time.
2023, on the other hand, will see normal service resume and SIM production topping 5 billion units. That represents a lot of waste when considering packaging on top of the card itself.
So what is the carbon footprint of SIM cards? A recent study from GSMA compared the carbon emissions of traditional SIMs to eSIM (embedded SIMs), providing some interesting numbers on the full lifecycle emissions of SIM cards.

As you can see, eSIMs (MFF2 SIMs) reduce carbon emissions by 46% over the product life compared to traditional SIM cards.
That’s a great result, but let’s see what happens when we add SoftSIM into this equation.
Production of the SIM:
- Traditional SIM = 136g CO2 equivalent
- eSIM = 1g CO2 equivalent
- SoftSIM = 0g CO2
SIM transportation:
- Traditional SIM = 31g CO2 equivalent
- eSIM = 0g CO2 equivalent
- SoftSIM = 0g CO2 equivalent
Usage:
One SIM authenticating a single user on a cellular network, including use for a period of three years.
- Traditional SIM = 15g CO2 equivalent
- eSIM = 1g CO2 equivalent
- SoftSIM = 1g CO2 equivalent
End device hardware:
Including components in the end device that ensure SIM functionality, such as the SIM tray, SIM connector, additional PCB area, and the SIM power supply.
- Traditional SIM = 15g CO2 equivalent
- eSIM = 1g CO2 equivalent
- SoftSIM = 0g CO2 equivalent
End of life (EoL):
- Traditional SIM = 8g CO2 equivalent
- eSIM = ~1g CO2 equivalent
- SoftSIM = 0g CO2 equivalent
Total lifecycle carbon emissions:
- Traditional SIM = 229g CO2 equivalent
- eSIM = 123g CO2 equivalent
- SoftSIM = 1g CO2 equivalent
Using similar logic as the original study, SoftSIM would reduce carbon emissions by more than 95% over its product life compared to traditional SIM cards.
The carbon efficiency gains of SoftSIM represent a strong advance in the possibility of producing CO2-neutral IoT products.
Reducing device power consumption
Power consumption is another concern for IoT designers. For example, devices that are deployed in remote areas without access to a direct power source, such as agricultural sensors and asset trackers, need to be able to extend battery usage as much as possible.
The group that defines cellular standards, 3GPP, acknowledged the need for low-power capabilities when it introduced Low-Power Wide-Area Network (LPWAN) protocols in its release 13. Standards such as LTE-M and NB-IoT are designed with IoT applications in mind and emerged in response to low-power solutions such as SigFox and LoRa, which run on unlicensed frequencies.
The new standards have enabled the production of more cost- and power-efficient devices that have the benefit of globally standardized cellular coverage. Among other power-saving features, devices using LTE-M or NB-IoT can implement Power Saving Mode (PSM) and Extended Discontinuous Reception (eDRX) to extend the lifetime of their batteries. Primarily utilized on devices that send data infrequently, PSM puts the device into a low-power mode for an extended time, only waking periodically to receive data or send a status update.
Adding SoftSIM to the equation can reduce a device’s power consumption even more dramatically. When we put a SoftSIM on a Nordic Semiconductor device, we reduced its power consumption by 90% (from 75 µA to 5 µA) in idle mode.
In active mode, removing the physical SIM didn’t make much difference in power consumption as an overall percentage—but for the many use cases where devices spend the majority of time in idle mode, SoftSIM can have a significant impact on power budgets.
You can read our full low-power IoT white paper here: Low-Power IoT Device Design: How to Optimize Connectivity.
SoftSIM use cases
SoftSIM can be used in practically any device that requires a SIM, but will produce more dramatic efficiency gains in devices that need to be extra small, power efficient, and able to be deployed in remote areas for long periods of time without human intervention. Let’s consider a few example use cases:
- Smart tracking labels
Tracking labels need to be especially compact and long-lasting as they must adhere to a pallet or package and stay in place as it travels through shipment and delivery. The latest smart asset tracking labels are only a few millimeters thick and can send instant alerts when triggered by an event, such as tampering. While their use is promising, smart tracking labels are currently too costly to make them scalable—a challenge that SoftSIM is helping to resolve by reducing the BoM on such devices.
- Micromobility
Fleets of micromobility vehicles such as e-scooters and e-bikes often use built-in GPS-enabled tracking devices, allowing businesses to see where their vehicles are and whether they’re in need of service or retrieval. Micromobility provides convenient transportation options in urban areas, but for operators, the industry can be a difficult one in which to succeed. The costs of hardware, maintenance, insurance, and connectivity add up quickly—making it difficult to achieve more than a slim profit margin. SoftSIM can help micromobility operators reduce BoM and optimize power consumption in their fleet, reducing the cost per unit.
- Smart agriculture sensors
On farms, devices such as soil or irrigation sensors are often deployed far afield and must continue to operate for long periods of time without human oversight, even in adverse weather conditions. Cellular LPWAN technology is a great fit for smart agriculture use cases where available because it reduces power consumption and allows devices to send and receive data across significant distances. The addition of SoftSIM can make LPWAN smart agriculture sensors even more cost-effective, power-efficient, and resilient by reducing the BoM and reducing power consumption in idle mode by up to 90%.
- Automotive and fleet tracking
Automotive and fleet tracking devices are constantly on the move, making connectivity a top concern for device designers. SoftSIM provides access to Onomondo’s global connectivity—630+ RANS in 180+ countries—on the same core network. Because it’s not a physical component, operators can reduce BoM costs and stay flexible during manufacture, shipment and deployment, as they’ll only need to pay for a SIM when it comes into use—and there are no fees when a SIM needs to be activated or deactivated.
By reducing BoM, adding more power efficiency, and reducing the carbon footprint of connectivity, SoftSIM opens the door to new IoT innovations. Learn more on the SoftSIM product page.