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ESIMs are Driving the Future of Connected Mobile :
Digitalization and virtual reality are two of the buzzwords across all sectors of business today. The trend of digitalization has given rise to embedded SIMs (eSIM) and soft SIMs. eSIMs refer to those devices that have a SIM placed within the phone out of the box, while soft SIMs are devices that do not have SIM hardware in place where the SIM functions are provided virtually or Over The Air (OTA). The advent of these two technologies has made the process of starting up a new device, such as smartphones, simpler and quicker.
In contrast with conventional SIMs, eSIMs and soft SIMs are cost-effective and can easily breakdown traditional geographical barriers. These technologies also open up a new world of possibilities when it comes to performance. When it comes to equipping tech with connectivity, traditional SIM manufacturers face a lot of difficulties. eSIMs and soft SIMs have ensured that this is no longer a barrier to spurring innovation, bringing connectivity to previously unconnected things.
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In most cases, when people travel around the world, they tend to purchase local SIM cards for each nation they stop by. Although this is cost-effective, it can be a very tiring process. Stepping out of the plane and searching for a SIM store at every destination can get annoying. Moreover, some devices may be locked for use in certain regions alone. This makes it problematic for travelers who like to traverse around the globe.
Thanks to global Wi-Fi hotspot devices, people can now stay connected while roaming, without having to worry about changing SIM cards or exponential roaming charges. IoT devices are becoming mainstream at a rapid pace. Soon, there will be billions of IoT devices connected worldwide, and this will lead to eSIMs and soft SIMs becoming an integral part of seamless connectivity.
Here the challenge lies in inserting the eSIMs into IoT devices. Traditional methods like soldering or adding eSIMs by hand can be a time consuming and expensive process. eSIMs enable device manufacturers to embed connectivity into anything without a physical chip and at the same time.
The Future of eSIM with Challenges Ahead:
Though eSIM has been available in smartphones for years now, the technology still hasn’t caught on in the mainstream. Only a few smartphones released each year have eSIM technology, for example, Google Pixel 2, and even fewer carriers support such devices. Moreover, iSIM, the eventual successor of eSIM, doesn’t even appear close to be added in the tech enthusiast’s dictionary, as far as mainstream consumers are concerned.
It seems a long-overdue change from the transformation of an old-fashioned analog SIM card to a smart digital alternative. It is as if the broader industry and consumers aren’t ready yet to move over to an embedded and digital alternative. Here are some reasons why eSIM is taking so long to become mainstream.
Challenges with eSIM
When asked about the challenges with eSIM, consumers say they are concerned with some common questions — Will they be locked to a single carrier? Will it cost more than a standard SIM? Will the details be secure? No doubt the questions are valid; they are needed to be answered. But, the answers are not so persuasive to entice users to switch to eSIM. Though the remote SIM provisioning and tiny chips are supposed to answer the questions, the issue of practicality still hovers.
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There are a number of websites where one can check and compare the data plans, but there’s currently not a single way to apply the plans to eSIM. Consumers can have an eSIM only after popping into stores, scan QR codes, and go through many such messes. This practically is more inconvenient than ordering a standard SIM. Another issue that haunts customers is the breaking down of eSIM phones. With an analog SIM, one can easily change it to another device, but the inbuilt eSIM doesn’t have that option. Carriers need to simplify the experience with eSIM, but it needs a substantial backend investment.
The Future of eSIM
Though eSIM has its standalone issues, it’s likely to be the SIM technology of the future. A survey report says that 80 percent of industry representatives believe the eSIM technology will eventually overtake traditional SIMs. The SIM card market is expected to shrink from 5.2 billion this year to 5 billion in 2024. It’s true that the market will never experience any sharp decline as the average consumers wish to keep their phones for a longer time rather than moving over to integrated SIM technologies.
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