Unleashing the power of eSIM

Sponsored: Bringing big benefits to mobile service providers

As the mobile industry evolves, operators are constantly seeking solutions to enhance their service offerings and improve operational efficiency. One solution that has garnered significant attention is eSIM – this is what it brings to mobile service providers (SPs).

Consumer eSIM technology has been around since 2016, but recent device changes mean that awareness and adoption will accelerate exponentially over the next few years. The US version of iPhone 14 was released in September 2022, and came as the first eSIM-only model from Apple. Rumours are already flying around that the next iPhone will not only be eSIM-only in the US, but in Europe too.

What does this mean? For SPs that want to offer services for those using the most popular device on the shelves, it means having some form of eSIM offering available is an absolute essential. While Apple’s shift has put the pressure on SPs to adopt the technology, there are a wealth of benefits to doing so too.

Seamless operations

eSIM technology offers SPs the opportunity to streamline their operations and achieve substantial cost savings. With eSIMs, SPs no longer need physical SIM cards to onboard new customers. This eliminates the associated manufacturing, logistics and packaging costs entirely, resulting in significant operational cost savings.

Being able to onboard remotely simplifies the process for customers too. Remote provisioning and activation of eSIMs means there’s no need for physical SIM swaps or visits to retail stores. This streamlined activation process reduces operational overhead and increases customer satisfaction by providing instant access to services.

Enhanced customer experience (CX)  

eSIM technology is significantly better suited to the desires of the modern consumer, thanks to its fully digital nature. Customers want digital, and ultimately, SPs need to match their products and services to customer preferences in order to reduce churn and keep customers satisfied.

According to Verint’s State of Digital Customer Experiencereport, 75 per cent of consumers deem their digital experience with a company as extremely important or important. eSIMs, and in particular, eSIMs that are activated using a mobile application, offer a fully digital onboarding experience, where customers can activate their mobile subscription fully remotely.

Additionally, eSIMs enable seamless device integration, removing the barriers to entry for new customers. Customers can activate their eSIM through their SP’s mobile application in just one tap with all of the stages of subscription activation handled automatically.

This frictionless onboarding experience ultimately enhances customer experience. But this benefits SPs too. By offering seamless CX through eSIM, SPs are better positioned to increase customer loyalty and retention, while also creating the opportunity to increase the average revenue per customer.

Enhanced service offerings

The adoption of eSIM technology brings forth new revenue streams and business growth opportunities for SPs. It allows them to offer enhanced, multi-device and multi-user subscriptions, which drive higher average revenue per user (ARPU) and attract high-spending customers.

It also provides an opportunity for international roaming and travel products tailored to those looking for a roaming package. With eSIM-enabled devices, SPs can cater to customers from around the world without the limitations of physical SIM cards, allowing them to tap into new markets and offer uninterrupted connectivity to international travellers.

SPs can leverage partnerships with global carriers to provide attractive roaming packages and ensure customers stay connected while abroad without costly charges. eSIM technology also enables dynamic network selection, ensuring users are always connected to the best available network, even in remote locations.

Diversified revenue streams

The ability to remotely provision and manage eSIMs allows operators to offer value-added services, such as data plans tailored to specific customer segments or even Internet of Things (IoT) deployments. SPs could offer unique services to meet the increasing demand for connected devices in industries such as healthcare, logistics, manufacturing and smart cities.

Take the example of manufacturing. The industrial IoT is becoming increasingly popular as it enables machine-to-machine (M2M) communication, making manufacturing facilities smart and digitalised, supporting greater operational efficiency. eSIMs directly feed into these IoT applications, and allow for the remote maintenance of devices connected to the network. For SPs, this fosters partnerships and collaborations across a variety of industries, creating a vibrant ecosystem of interconnected devices and services and additional, specialist revenue streams.

Futureproofing

By embracing eSIM technology, SPs futureproof their business. As arguably the industry leader, Apple’s eSIM-only shift will undoubtedly be the first of many. As the industry moves towards a more connected and IoT-driven world, eSIMs provide a foundation for seamless integration and management of a multitude of devices.

eSIM technology enables operators to remotely update and manage profiles, ensuring compatibility with emerging network technologies and standards. This flexibility allows operators to adapt to changing customer demands and industry trends without requiring physical infrastructure changes or device replacements.

With the iPhone 15 and its eSIM-only approach, the telecoms industry must prioritise digital-first services to meet the needs of an increasingly connected world. As a result, operators must invest in digital infrastructure, including user-friendly mobile apps and digital platforms that facilitate plan selection, activation, account management and easy cross-sell of third-party digital products and services. This shift will help telecoms operators reduce their reliance on physical retail stores, leading to potential cost savings and increased operational efficiency.

The rise of consumer eSIM technology is transforming the telecoms industry, offering numerous benefits to both operators and users. While Apple’s decision has ultimately put pressure on SPs to adopt eSIM — and do so quickly — there are a host of additional benefits that the technology brings to SPs and their customers alike.

About Mobilise: Mobilise is a leading provider of SaaS solutions to the telecommunications industry. Focused on delivering highly engaging digital-first service propositions with excellent customer experience, Mobilise has a proven track record, deep industry knowledge and a team of specialists to support clients to building and executing transformational strategies.

Clients range from large corporate organisations with over 100,000 employees to small enterprises with under 20 employees. Mobilise has a deep knowledge of the telecoms business model and our experience includes working with over 40 service providers across eight markets for brands including Virgin, Dixon’s Carphone, Red Bull Mobile, Manx Telecom and Freenet. Learn more about the latest activities and news from Mobilise by visiting mobiliseglobal.com/insights/