Mobile phone users may soon be able to change operators on a whim, thanks to embedded SIM, or eSIM cards. Telecom providers will be able to raise their game to retain users, say company executives
and experts.
and experts.
What is an eSIM?
eSIM is a digital SIM card.
Its uses…
Subscribers can use the eSIM to activate a mobile tariff plan without recourse to a physical SIM.
Mobile number portability, which allows consumers to change operators without altering numbers, will become easier with eSIM.
Who or what will suffer…
Carriers will have to work harder to retain or acquire new customers.
This may lead to competition intensifying.
Margins may be hurt as customer cost may rise.
Telcos’ Stance
Vodafone Idea & Bharti AirtelNSE 1.53 % say they are ready to work with eSIMs.
Airtel & Reliance Jio have already partnered with Apple to sell eSIM enabled Apple Watches.
Its current application…
eSIMs are largely being used for IoT and Machine-2-Machine solutions.
Challenges
The handset ecosystem is at a nascent stage.
eSIMs adoption rate among consumers has been slow as it has been introduced only on high-end devices.
Only a few smartphones — iPhones XS, XS Max, XR and Google Pixel 3, which are premium devices — support eSIMs.
Future Outlook
eSIM penetration in India is less than 1%. It is expected to grow to 25% by 2025.
Globally, the eSIM market is estimated to grow to $978.3 million in 2023 from $253.8 million in 2018.
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