Why eSIM could destroy the operator market
Posted: Thu Dec 05, 2024 9:33 am
Many have heard about the advantages of an embedded SIM card (eSIM): the technology promises a revolution in all segments of the telecom market, from smartphones to IoT devices.
Despite the fact that the eSIM market is young and is only just forming, there are already some first experiences of implementation. Thus, last year Google Pixel 2 became the first smartphone with eSIM, which was offered by the virtual operator Project Fi in the USA.
The technology is also being implemented by other major smartphone united kingdom phone number library manufacturers: Apple is embedding eSIM in some of its iPads and iWatches, and Samsung is not far behind. Therefore, experts believe that the widespread implementation of this technology is a matter of the near future.
Leaden clouds
However, eSIM could become a potential threat to mobile operators. This technology will completely destroy the traditional relationship between operators and subscribers, since the former are accustomed to selling their services through retail chains and communication stores.
If the user has the opportunity to dynamically select an operator without being tied to a specific one, will he visit communication shops? Unlikely. The subscriber will easily "change" his mobile operator, for example, with an MVNO or another mobile operator.
"Mobile operators have been making money selling physical SIM cards for years, and it's been a reliable source of income," says Wally Swain, an analyst at 451 Research. According to him, subscribers will be able to buy a phone with a built-in SIM card directly from the manufacturers of subscriber terminals, bypassing the operators. And this is a real challenge for mobile market players.
However, not all mobile players see eSIM as a threat to their business. For example, Philippe Lucas of Orange is unperturbed: “From the point of view of a mobile operator, eSIM will simply take the relationship with users to a new level – digital,” he is sure. He does not think that digital retail will “go away”, and many users will continue to buy mobile phones through communication shops or order services online.
Advantages and barriers
For virtual operators, eSIM technology will open up new growth opportunities.
When traveling abroad, users can easily switch to a virtual operator offering more favorable rates compared to their “home” operator.
Importantly, eSIM allows storing multiple operator profiles on one terminal. Therefore, switching from one operator to another takes a few seconds. Thus, subscribers-travelers are another interesting target audience for MVNO.
Despite the fact that the eSIM market is young and is only just forming, there are already some first experiences of implementation. Thus, last year Google Pixel 2 became the first smartphone with eSIM, which was offered by the virtual operator Project Fi in the USA.
The technology is also being implemented by other major smartphone united kingdom phone number library manufacturers: Apple is embedding eSIM in some of its iPads and iWatches, and Samsung is not far behind. Therefore, experts believe that the widespread implementation of this technology is a matter of the near future.
Leaden clouds
However, eSIM could become a potential threat to mobile operators. This technology will completely destroy the traditional relationship between operators and subscribers, since the former are accustomed to selling their services through retail chains and communication stores.
If the user has the opportunity to dynamically select an operator without being tied to a specific one, will he visit communication shops? Unlikely. The subscriber will easily "change" his mobile operator, for example, with an MVNO or another mobile operator.
"Mobile operators have been making money selling physical SIM cards for years, and it's been a reliable source of income," says Wally Swain, an analyst at 451 Research. According to him, subscribers will be able to buy a phone with a built-in SIM card directly from the manufacturers of subscriber terminals, bypassing the operators. And this is a real challenge for mobile market players.
However, not all mobile players see eSIM as a threat to their business. For example, Philippe Lucas of Orange is unperturbed: “From the point of view of a mobile operator, eSIM will simply take the relationship with users to a new level – digital,” he is sure. He does not think that digital retail will “go away”, and many users will continue to buy mobile phones through communication shops or order services online.
Advantages and barriers
For virtual operators, eSIM technology will open up new growth opportunities.
When traveling abroad, users can easily switch to a virtual operator offering more favorable rates compared to their “home” operator.
Importantly, eSIM allows storing multiple operator profiles on one terminal. Therefore, switching from one operator to another takes a few seconds. Thus, subscribers-travelers are another interesting target audience for MVNO.