IoT/M2M SIM vs Normal SIM for GPS Tracking: What’s the Difference and Why It Matters

IoT/M2M SIM vs Normal SIM for GPS Tracking

As the demand for reliable GPS tracking and fleet management solutions grows, so does the need for the right connectivity. One of the most important and often overlooked components of any GPS tracking system is the SIM card inside the device.

Recently, one of our new partners in Angola asked, “Can I just use a normal phone SIM card in my GPS trackers?”

The short answer: You can, but should you use it? Probably not.

In this article, we’ll break down the key differences between IoT/M2M SIM cards and normal consumer SIM cards for GPS tracking, explain where each is appropriate, and introduce the growing role of eSIMs: a future-ready connectivity option for vehicle and asset tracking.

What Is an IoT/M2M SIM Card?

An IoT (Internet of Things) or M2M (Machine-to-Machine) SIM card is a special type of SIM designed to connect smart devices like GPS trackers, security cameras, smart meters, and other IoT equipment to the internet or private networks.

Unlike normal SIM cards made for mobile phones and tablets, IoT SIMs are optimized for small, frequent data transmissions and can roam across multiple networks seamlessly, which is a critical feature for vehicle tracking in regions with inconsistent coverage.

Normal SIM Cards

Normal SIM cards, also known as, are designed for high-data, voice, and SMS traffic typically used by mobile phone subscribers. They prioritize voice calls and large data sessions (like streaming or social media) rather than the small, consistent data packets sent by GPS tracking devices.

While you can use a normal SIM in a tracker, there are significant limitations that could affect the reliability and security of your tracking system, especially if your fleet operates across different regions.

Key Differences: IoT/M2M SIM vs Normal SIM for GPS Tracking

FeatureIoT/M2M SIM CardNormal SIM Card
Designed ForIoT devices: GPS trackers, smart meters, sensorsPhones, tablets, and personal devices
Network RoamingSeamless multi-network roaming for better coverageLimited or expensive, often restricted
Data BehaviorOptimized for small, frequent data packetsBuilt for heavy, burst data and voice
Remote ManagementFull control via IoT SIM management platformsManual SIM management
SMS/USSD Command SupportSometimes restricted; may require platform-based commandsFull SMS capability for direct diagnosis
Phone NumberTypically no phone number (uses device ID)Has a phone number for calls/SMS
Data Bundling Across SIMsEasily pool and share data across fleet SIMsData isolated per SIM card

Common Pitfalls with IoT SIMs

While IoT SIMs offer superior functionality for fleet tracking, it’s important to be aware of a few operational considerations:

  • Some IoT SIM providers disable SMS functionality or limit it to their management platform, which can make diagnosing offline devices more challenging.
  • No phone numbers on IoT SIMs means you may need to rely on device IDs and management portals for command and control.
  • Offline troubleshooting often requires accessing the SIM management dashboard rather than sending a simple SMS.

Common Pitfalls with Normal SIM Cards in GPS Tracking

While normal SIM cards might seem like a simple, low-cost option for GPS tracking, they come with several limitations that can negatively affect the performance and scalability of your tracking operation. Here are some of the common pitfalls to be aware of:

  • Single-network coverage without automatic roaming, leading to offline devices in poor coverage areas.
  • Expensive roaming charges often lead to high costs or disconnections when vehicles cross borders.
  • No centralized SIM management portal for monitoring, bulk actions, or remote control.

For professional, scalable fleet tracking, IoT/M2M SIM cards are specifically designed to avoid these issues and deliver reliable, always-on connectivity across regions and networks.

What About eSIMs for GPS Tracking?

eSIMs (Embedded SIMs) are programmable, built-in SIM chips soldered directly into the GPS tracker’s hardware. Instead of physically swapping SIM cards, you can remotely load, switch, or manage network profiles on an eSIM, making it ideal for global tracking operations or devices deployed in hard-to-reach areas.

Benefits of eSIMs for GPS tracking:

  • Enhanced security (can’t be removed)
  • Reduced mechanical failure risk
  • Simplified network management for large fleets
  • Remote profile switching without physical access to the tracker

Many modern GPS devices from manufacturers like Teltonika and Queclink now support eSIM technology.

Which SIM Type Should You Use?

If you need…Use
Simple, small-scale, or test trackingNormal SIM
Reliable, scalable fleet trackingIoT/M2M SIM
eSIM profile management and securityeSIM-compatible devices and profiles

In conclusion

Choosing the right SIM card type is one of the most important decisions in any GPS tracking deployment.

When that conversation in the boardroom about IoT SIM vs Normal SIM for GPS Tracking comes up, remember IoT/M2M SIM cards offer better network reliability, data efficiency, multi-network roaming, and centralized management, making them the preferred choice for serious fleet operators and GPS tracking companies.

As the tracking market evolves and demand for cross-border, always-on fleet management grows, eSIM technology is becoming an essential tool for forward-thinking providers.

Bonus Tip

Regardless of the type of SIMcard you have chosen for your client’s needs, you will occasionally encounter connectivity issues that will require troubleshooting. Here’s a guide on how to troubleshoot SIM Card connectivity issues.