In recent years, eSIM technology has emerged as a game-changer, offering a range of benefits for both consumers and businesses. One area where eSIM is making a significant impact is in the realm of Mobile Virtual Network Operators (MVNOs). This post delves into the advantages of eSIM technology and how it can help MVNOs expand their offerings and reach customers more effectively.
eSIM Technology: the Basics
eSIMs, or embedded SIMs, are digital SIM cards that are embedded directly into a device’s chipset. Unlike traditional plastic SIM cards, eSIM profiles can be remotely downloaded and managed, eliminating the need for physical SIM card swaps. eSIMs offer several key benefits:
- Remote Provisioning: eSIM profiles can be downloaded over the air, enabling seamless and immediate activation of mobile services.
- Multiple Profiles: Devices can store multiple eSIM profiles, allowing users to switch between carriers and plans effortlessly or to maintain multiple phone numbers.
- Space Efficiency: By eliminating the need for a physical SIM card slot, eSIM frees up valuable space within devices so manufacturers can make thinner, lighter and more flexible devices.
How eSIMs Benefit MVNOs
eSIM technology presents a range of advantages for MVNOs, making it easier for them to enter the market and compete with established carriers:
- Reduced Operational Costs: eSIM eliminates the need for physical SIM card production, distribution, and inventory management, significantly reducing operational costs for MVNOs.
- Faster Time to Market: With eSIM, MVNOs can launch their services more quickly, as they don’t have to wait for physical SIM cards to be produced and shipped.
- Enhanced Customer Experience: eSIM enables a seamless and convenient onboarding experience for customers, as they can activate their service instantly without visiting a store or waiting for a SIM card to arrive.
- Increased Flexibility: eSIM allows MVNOs to offer a wider range of plans and services, as customers can easily switch between them without changing SIM cards.
- Global Reach: eSIM facilitates international expansion for MVNOs, as they can offer international roaming without having to work through their host operator.
eSIM Use Cases for MVNOs
eSIM technology can be leveraged by MVNOs in various ways:
- Consumers: eSIM enables consumer MVNOs to offer a seamless and convenient onboarding experience, with instant activation and easy switching between plans or operators if the MVNO supports multiple host networks.
- Enterprises: eSIM can be used by MVNOs to better serve enterprise customers. Today, most large enterprises gravitate towards the major mobile operators, ignoring the cost saving options available from MVNOs. Being able to push new MVNO eSIMs to an entire workforce will put MVNOs in a more competitive position against large operators.
- IoT: eSIM is ideal for IoT, as it allows for remote provisioning and management of SIM profiles in IoT devices, enabling seamless connectivity and deployment. The limitation is the lack of IoT devices that support eSIM. Most IoT devices are targeted at low price services and the addition of a more expensive eSIM module can make the chipset too expensive for the IoT deployment.
The Future of eSIM for MVNOs
As eSIM technology continues to mature and gain wider adoption, it is poised to play an increasingly important role in the MVNO landscape. The underlying cost of eSIMs will continue to drop enabling device manufacturers to include them in lower tier phone models. MVNOs will be able to remove the plastic SIM from their supply chains and allow immediate download and activation for new customers.