Activating an eSIM on the same day as purchase is a small but significant triumph for the mobile market. Additionally, simple network switching and multiple eSIMs on one device could radically change consumer behaviour and improve our lives.
That said, there is more to eSIMs than ease of use and low costs. One of the biggest winners in the eSIM revolution could be the environment.
First, let’s look at what’s contributing to the growth of eSIMs and some of the problems with them.
MNOs are better positioned than MVNOs to capitalise on critical and logistical communications concerned with IoT. MNOs can prioritise their traffic above that of MVNO traffic. Thus, they can establish a strategic advantage, providing critical and logistical communication assurances that MVNOs can’t.
Thanks to lower overheads, MVNOs can offer cheaper contracts to customers than some MNOs can. However, the proliferation of eSIMs in IoT devices could negate the impact of the lower costs offered by MVNOs.
Trouble securing eSIMs
Most consumers don’t understand the risks of eSIMs, as it is a nascent technology. The ease of scanning a QR code and linking your device to a network raises a considerable risk. Bad actors could put QR codes where they are likely to be scanned, gaining access to your device. Similarly, eSIM profiles could be configured to track you or exfiltrate data.
The real hidden benefit of eSIM market expansion relates to the environment. Increasingly, consumer segments may value the lower environmental impact of eSIMs. In addition to less plastic SIM card waste, eSIMs generate 46% less carbon emissions across their lifecycles compared to physical SIMs. Furthermore, they can extend the lifespan of devices.
For operators, consumers and businesses, the best eSIM benefit is their efficiency and money saving, while reducing environmental impacts. However, studies show that unless consumers see a product’s direct environmental benefits, they typically choose the cheapest product. Thankfully, eSIMs cost less and offer better features than physical SIMs. Operators just need to increase consumer awareness about the myriad benefits of eSIMs.
‘Operators could pass savings from the lower eSIM operating costs onto customers or reinvest them in infrastructure and device engineering. Whatever operators choose, the future is clear. The eSIM market is going to massively expand; it’s just a question of how soon.’
Douglas Bryce, Marketing Communications Specialist at Squire Technologies
