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How can eSIM technology help operators grow?
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With the number of eSIM-capable consumer and IoT devices growing exponentially and support for the new technology rolling out across markets, many operators are uncertain about the threats and opportunities this new way of delivering mobile subscription brings. On the one hand, it’s a great way to cut operational costs and leverage the benefits of fully digitized retail. On the other hand, it’s an easy way for current subscribers to switch to the services of local market challengers or global disruptors for at least some of their connectivity needs. What should CSPs do to ensure eSIM technology will enable them to provide better service to more customers and mitigate the possible risks?
While the early stage of eSIM adoption adds convenience to existing telco offerings, it’s clear that this can lead to changes in consumption models. eSIM technology is making it easier to deliver temporary subscriptions, that subscribers can switch between as easily as they currently switch between WiFi networks. This will increase the demand for “try before you buy” and “pay as you go” products, so CSPs need to make these kind of offerings available to the market. eSIM technology will also simplify the MNP process, so operators will need to handle such operations in a fully digital manner. In some markets, large operators are evidently reluctant to embrace eSIMs, but in the long term, this is likely to make them increasingly vulnerable to challengers who have taken a more creative approach to adopting the technology.
The same dynamics apply to the b2b segment, but at a larger scale, including not only corporate smartphones, but also a growing number of eSIM-capable IoT devices. Such deployments are challenged by the need to seamlessly switch between networks to provide full national coverage and cross-border operations for mobile clients. Currently, the only solutions are based on individual agreements between operators, but with the emerging open marketplaces for digital products (like the one we are working on in the “Vertical Industry Telcos” Catalyst), this has the potential to evolve into more scalable, standards-based ecosystems. The possibilities of industrial eSIM products are not limited to faster and easier device provisioning. The technology opens up a standard approach to device authentication and management, including firmware updates and application delivery. This will allow CSPs to offer more comprehensive services and get involved in projects that are currently the prerogative of specialised IoT service companies. The new flexibility introduced by eSIM technology will give large customers more confidence in tackling major projects, avoiding the risks of vendor and operator lock-in, and propelling faster growth for the entire market.
Back in the 1990s, the introduction of the SIM card led to a flatter market and boosted healthy competition, resulting in revenue increase for telco operators. Ironically, the next leap ahead will be possible only if we let the good old plastic SIM card go and embrace the post-physical mode for client-side operations. We believe that Nexign can offer the right toolset to enable this kind of future! www.nexign.com Nexign is a silver sponsor of the Digital Transformation World Series. While we can’t meet physically, we’ve reimagined everything you know and love about Digital Transformation World and turned it into a six-week digital event. The Series will offer a varied and engaging content program that will enable our global membership to connect, learn and collaborate, supporting all time zones. Don't miss out on the festival of collaboration! Register today. Note: Communication service providers: you can claim your free pass here.
