eSIM

Analysts believe that eSIM will bring the next big wave of disruption in the telecom sector and mobile operators often fear what the change might mean for them. eSIM is a big opportunity that could revolutionize the services MNOs and MVNOs provide to their customers by reducing the dependency on a physical sim card. It also frees up highly valuable physical space on the device making room for advancements in the devices. The implications of eSIM usage is effecting all players within the telecom sector.

The global eSIM market size was valued at USD 8.03 billion in 2019 and is expected to expand at a Compound Annual Growth Rate (CAGR) of 15.8% from 2020 to 2027. The adoption of eSIM in telecom is being further accelerated by Apple’s launch of the dual sim phones that enables customers to carry the physical sim cards as usual and at the same time be able to use eSIM. In this blog we list why mobile networks cannot afford to miss this opportunity while being careful of the risks associated with the adoption on eSIMs.

How eSIM can positively affect mobile network operators

1. Adoption of eSIM for M2M connections is positively affecting the network operators for providing better subscription services, thus offering connectivity services that has resulted in additional revenue generation for the network operators.

2. Increase in customer satisfaction and loyalty. Being seen as a first mover in the eSIM market will help mobile network operators gain a new audience and also increase loyalty with existing customers by expanding the range of services they can provide.

3. eSIM services become a key differentiator for mobile network operators and first movers will sweep the market and increase their customer base significantly.

4. Operators have a huge opportunity to provide better digital services to customers which could be highly relevant and even essential in the current circumstances because of the pandemic. Touchless, hassle-free sim services could be a game changer.

5. Reduce the cost of shipment and distribution of physical sims

The challenges

However, not all telecom carriers are ready with technology to support eSIMs, especially in the developing markets. Absence of technology and support may impede the exponential growth in eSIM that analysts are predicting.

Mobile network operators also see the risk associated with eSIMs as it makes it easier for customers to switch operators. This means mobile network operators will have to work harder to retain customers and strengthen their loyalty programs. To leverage the opportunity eSIM provides, mobile network operators have three main challenges to address.

1. Investment requirement in the technology to ensure networks are ready to support eSIM adoption. eSIM comes with the promise of fewer overheads but the initial investment might be prohibitive for small operators to enter the eSIM market.

2. Educating the customer of the benefits of eSIM to fuel uptake. For less technology savvy customers, it will be a new concept to learn and adapt and it’s in the mobile networks benefit to make the onboarding of eSIM fast and easy. If consumers struggle with the set up and usage of eSIMs, the adoption of the technology will slow down. Hence, education of customers is important.

3. Addressing the challenge that eSIM will empower customers to switch operators at the touch of a button will require loyalty and retention programs to be strengthened. This is probably the biggest fear where mobile operators would have to step up their game to ensure longevity and recurring revenue. Long contracts may become a thing of the past and mobile network operators will have to innovate to ensure customers stick to their network while increasing average ARPU.

To sum up, eSIM technology is set to change the day-to-day working of a mobile network operator but are MNO’s ready? Talk to Oasis Smart sim to discuss your eSIM journey and any queries you have around it.

Oasis Smart Sims’ Provisioning Solution for Consumer Electronics

Oasis Smart Sims’ Subscription Manager and eSIM profile management platform allows OEMs and mobile operators to remotely and automatically provide mobile connectivity to eSIM-enabled devices wherever they are. Located in our Paris based secure data center,  our eSIM Subscription Manager for consumer devices is the one of the most flexible and scalable in the market and fully certified by the GSMA in compliance with the GSMA SGP.23 .

About Oasis Smart Sim

Oasis Smart Sim Europe develops and provides advanced technologies and personalized services to enable the deployment of eSIM (embedded SIM card) and SIM technologies certified by the GSMA.

Our value proposition includes a complete set of GSMA-certified services for mobile operators and device makers to enable 4G and 5G connectivity on IoT, M2M and Consumer Devices.

Click the link below to find out more about us.

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