One innovation is transforming how the entire world stays connected — and it can be accessed with just a few quick taps on a screen.
An eSIM is a software-based evolution of the traditional SIM card that demonstrates the next generation of convenience and flexibility in global communication. Unlike a SIM card, an eSIM doesn’t need to be inserted into a phone. It can be downloaded, activated, and provisioned remotely.
A report from GSMA Intelligence projects there will be 1 billion eSIM smartphone connections by 2025 and that 76% of all smartphones will be using eSIMs by 2030. Likewise, Juniper Research projects the value of the global eSIM market to increase from an estimated $4.7 billion at the end of 2023 to $16.3 billion by 2027. As of today, all major smartphone releases support eSIMs.
It’s no coincidence that this surge in use comes when the internet of things (IoT) and 5G networks keep expanding. As enterprises demand additional real-world data and scale their global operations, an eSIM is the solution that makes those endeavors possible — and so much more.
The business advantages of using eSIMs
Your business can quickly and easily adjust to changing needs with an eSIM. Notably, you can change connectivity plans or providers in seconds, and you can ensure your people and devices are always online.
Among the other key benefits businesses can recognize from eSIMs:
— They offer global cellular connectivity. If you’re based in the U.S. but frequently travel abroad for work, you can access the local network with just a few taps on your screen. Some eSIMs even come with regional capabilities, including Europe or Asia-Pacific connections. And, if you’re in an industry that must transport items worldwide, you can interface with a device from anywhere as long as a network operator supports eSIM technology.
— They enable flexible policy management. eSIMs are software-based, so businesses can easily provision employee profiles at the click of a mouse. New hires can have their numbers activated immediately while those exiting the company can have their privileges revoked. If execs land in Spain for an industry conference, they don’t have to find a kiosk selling SIM cards — especially if they arrive late at night. Your business can configure different eSIM profiles with specific network access, countries, and data allotments tailored to each user’s requirements.
— They allow remote data collection and over-the-air updates. Instead of a utility company sending someone to read water meters at every house in a development or to a wind farm 100 miles from the nearest town, that data can be collected automatically at specified intervals through a cellular connection. And, devices can be updated remotely, too, whenever a software upgrade is needed.
— They integrate with the cloud. eSIM profile provisioning and management systems can be hosted in the cloud, enabling automation through APIs and reducing manual processes. An eSIM profile can be stored in a cloud database and assigned to a device once it has been activated. The device’s data usage can then be tracked, and if necessary, a reminder to purchase another data plan can be sent to an administrator.
— They can reduce costs. This will depend on your usage, but eSIMs can provide some level of savings. They may have lower implementation costs since SIM cards don’t need to be purchased and distributed. Remote meter readings mean fewer people must visit sites to collect data. Properly provisioning international access can prevent bill shock and overage charges. How you set up your cellular infrastructure will determine what you pay.
As with any emerging technology, there are bound to be speed bumps, and it’s no different for eSIMs. The good thing, though, is that the hurdles are relatively low, as most involve educating people on eSIMs’ usage and which network operators and devices can support them. It’s only a matter of time before those issues work themselves out.
Which eSIM provider is the best for your business?
You must consider several factors when evaluating which eSIM provider is right for your business needs.
First and foremost is coverage. Access may be spotty if your windmills are in a very rural area, so identify which network is most reliable in that area. Also, there are still countries where no single operator has nationwide coverage, so you may find it beneficial to have an eSIM with access to multiple networks in case your connection to one of them isn’t as strong as you need it to be.
Another major consideration is cost. Generally, the cheaper the service, the lower the coverage quality. If you’re a business traveler, you may be alright with a little bit of an echo on your calls or a half-second delay between what you say and your colleague’s response. But IoT devices often require optimal service, and you’ll pay more for high bandwidth and low latency.
Customer service is also worth evaluating, and it goes hand-in-hand with cost. A mobile virtual network operator (MVNO) can offer eSIMs for a low rate because their support is lacking. If you anticipate needing help from the MVNO when issues arise, you’ll want to find one that’s more responsive than others.
You also can’t forget about security. Businesses must understand the security guarantees an eSIM provider offers. If you’re trying to adjust the brightness of a light bulb remotely, your need for security is low. But if you’re sending medical images to the cloud so other technicians can read them, you’ll need stringent requirements. Researching an eSIM provider’s security features is critical.
Once you have defined your use cases, budget, and security requirements, it’s just a matter of completing the transaction and activating the eSIM in your devices.
A new era of business connectivity
As eSIMs become more commonplace, they’ll continue to be incorporated into all types of devices for countless use cases.
In addition to international roaming use cases, we’re already seeing how eSIMs benefit enterprises that have set up private 5G networks. If you’re moving goods from one warehouse to another, an eSIM can keep your trucks seamlessly connected once they roam off your private network, onto a mobile operator’s network, and back onto yours.
eSIMs will also become even easier to use. The GSMA is continually launching updated technical specifications for eSIMs that further standardize remote provisioning processes and support additional profiles on a single device. And, as more operators enter the eSIM market, economic forces will make them accessible to a wider audience.
Despite the growth of eSIMs, physical SIM cards will not disappear anytime soon. Plenty of legacy devices will continue to use them until they reach end of life. Yet, it’s clear that big changes in connectivity are on the horizon — and it will be much easier to take advantage of them.
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