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eSIM: Transforming Mobile Communication

25 years after the birth of the removable card, the eSIM or virtual SIM arrives at the market, which brings about a revolution for the user and a considerable challenge for CSPs. Embedded SIM cards are replacing traditional removable ones.…

By Gustavo Adrian Garcia

TL;DR

25 years after the birth of the removable card, the eSIM or virtual SIM arrives at the market, which brings about a revolution for the user and a considerable challenge for CSPs. Embedded SIM cards are replacing traditional removable ones. What will this disruption mean for the industry?

Key takeaways

  • Present and Future of eSIM Nowadays, the SIM card is working as a microcomputer capable of accommodating all credentials and keys required to authenticate a user and connect it to a network.
  • Since its creation in 1993 until now, this technology exists in physical format.
  • But with the arrival of M2M (Machine to Machine) and the Internet of Things (IoT), a new need came into place.

Present and Future of eSIM

Nowadays, the SIM card is working as a microcomputer capable of accommodating all credentials and keys required to authenticate a user and connect it to a network. Since its creation in 1993 until now, this technology exists in physical format. But with the arrival of M2M (Machine to Machine) and the Internet of Things (IoT), a new need came into place.

With expectations of 50B IoT devices connected, on-demand remote provisioning and mobile connectivity are going to be key factors in this business. Find out more about the future of telecoms in Intraway’s Vision for 2020 and beyond.

According to Ericsson Mobility Report, almost half of the 28,000 million of devices that will be connected in 2021 will be part of IoT, so they will need an eSIM. This forecast has made GSMA, the largest organization of telecommunications operators, work on the development and implementation of the eSIM, thanks to Over the Air technology, which allows moving data from one operator to another through the cloud or via Wi-Fi.

Benefits for MSOs and End Users

The deployment of the virtual SIM Cards scheduled for the next few years represents a great impact on MSOs, as they are integrated into the device, it will be much easier to subscribe or unsubscribe at the very same time of purchase.

On the other hand, the constant growth of interconnected devices, such as cameras and watches, opens up new market opportunities to lead the telecommunications industry, as they will have to strive to be the ones to connect them.

From the user’s point of view, the benefits are considerable. In the first place, since it is a card that is already embedded in the device, it will no longer be necessary to request any physical card when acquiring a service or changing operator.

Secondly, the virtual SIM will allow many devices to operate autonomously and independently, without having to connect to via Bluetooth or to a Wi-Fi network.

In turn, the eSIM allows storing different device profiles of different operators, which can be changed depending on the needs of the user. This is an interesting fact in the case of roaming in foreign countries, where the user can change profile depending on the country they are traveling.

End users will enjoy a seamless experience on a plethora of devices, knowing they are securely connected to ubiquitous mobile networks.

Operators will gain new business opportunities from a world of intelligently connected services and devices, reduce the logistical costs associated with handling traditional SIM cards and retain existing SIM security levels, all with minimum impact to their current network infrastructure, and minimum cost of integration and testing.

It will also be easier for companies to manage clones, perform format changes (microsim, nanosim, and dualsim), and even streamline the logistics in the event of a change of operator.

eSIM is part of a variety of future technologies that will transform the telecom landscape by 2020 and beyond. Learn more about the future of telecommunications and be ready to embrace the digital transformation with Intraway’s Vision for 2020 and beyond.

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