Data-only solutions recommended for smart devices due to regulations

It is no secret that the Internet is being used more than ever. In 2012, the percentage of daily Internet use in the Netherlands was still 76% according to Statistics Netherlands (CBS), more than ten years later this has risen to 90%. The increasing popularity of smart devices that work exclusively via the Internet contributes to this. Due to certain developments, it is becoming increasingly logical to use a data-only solution for such smart devices.

06 numbers not allowed for M2M purposes

One of the main reasons why data only solutions, such as data SIM cards, are becoming more popular is the ACM (Consumer & Markets Authority) regulations regarding the use of 06 numbers for smart devices. The regulator has confirmed that standard mobile telephone numbers (06 numbers) may only be used for devices that enable mobile telephony. In fact, these numbers are limited to use for telephones. Providers must therefore clearly inform customers of this. The use of a SIM card received via a mobile subscription or prepaid connection in an M2M device is therefore not permitted, for both business users and consumers. This applies to both the B2B sector (including smart meters, security systems and sensors) and the B2C sector (including MiFi routers, smart watches and car systems). The ACM also specifically mentions tablets as an example of devices for which a 06 number may not be used. Using a mobile subscription or standard prepaid SIM card for an iPad or other tablet is therefore not allowed. This can result in a SIM card or number being blocked, or it not functioning properly. In a fact sheet for telecom providers, the regulator gives the shortage of 06 numbers as the reason for the above regulations. These are running out and choices must therefore be made. The use of 06 telephone numbers (and associated SIM cards) in devices that work exclusively via the Internet is seen as unnecessary.

Data only SIM card providers

Providers of data only solutions, such as XIPO CONNECT, offer data SIM cards that do not have a 06 number linked to them. Such SIM cards may therefore be used for devices that do not use mobile telephony, including M2M devices. It is not possible to make mobile calls and send text messages with these SIM cards. They have therefore been developed purely for internet use and are therefore suitable for all smart devices, and can also be used in smartphones.

Costs for calling and texting

Another logical reason for not using a standard connection (such as a mobile subscription or standard prepaid SIM) in smart devices is that people often pay unnecessarily for calling and texting. This is especially the case with subscriptions. A bundle of calling minutes and text messages is taken out, while smart devices such as dongles, tablets and MiFi routers can only be used for the Internet. Usually it is simply cheaper to use a data SIM card or other data-only solution. The only costs incurred are for the data bundle itself. In the case of prepaid, it is then possible to purchase separate prepaid internet bundles. With a subscription you receive a monthly bundle with only internet.

SIM cards for MiFi routers and other smart devices

One of the most popular devices for an internet connection is a MiFi router. This is a good example of a device suitable for a data SIM card, while a standard SIM card (with a mobile number) is not, because a MiFi router is specifically designed to enable an internet connection. Calling and texting are irrelevant, and so is a phone number. That's why a data-only SIM card is often used as a MiFi SIM card. This prevents unnecessary charges for calls and texts, and data bundles offer greater cost control.