What is eSIM, and why is everybody talking about it?

Author: Ulrike, Senior Brand Marketing Managerin at TDSoftware

That the eSIM is on its way is no longer a question, it’s a fact. eSIM is already shaping the future of embedded connectivity. The GSMA predicts that by 2025, 35% of all smartphone network connections will be made using eSIM technology and even in just two years’ time, 10% of those connections will be via eSIM.

After more than 25 years on the market, SIM cards are about to disappear. Currently, a cross-industry transformation is taking place due to the eSIM revolution. The future of SIM cards lies in embedded SIMs. Is there anyone nowadays who has never had to fumble about for a paper clip to help them open the SIM card socket? Or they had to borrow nail scissors to cut the micro SIM down to nano format? These fiddly tasks are about to become a thing of the past. The replacement: eSIM – a chip soldered directly into the smartphone, rightly deserves much more than a simple upgrade. Yes, it allows you to connect a device without a paperclip, but that is only one of the advantages. eSIM brings wide-ranging benefits to consumers, companies, and mobile operators.

The new normal of remote working, social distancing, and needing everything to be readily available has increased exponentially. With a traditional SIM card, you had to switch out the SIM if you wanted to change carriers. Because eSIMS are digitally downloaded within a few seconds of users signing-up with their favorite mobile service providers, allow for an entirely seamless experience anywhere in the world. Users can also switch between multiple data subscriptions in their phone, for example, personal, travel, and business subscriptions.

eSIM cards are integrated permanently and are smaller than standard nano-SIMs. They can even fit into wearables, such as smartwatches and fitness bands. They are rewritable, compliant with all operators, and can be activated and managed anywhere using remote SIM provisioning.

It’s not only consumers who benefit – eSIMs are particularly beneficial for enterprises as they offer flexibility and convenience for organizations managing hundreds or thousands of mobile devices for their staff. Reduced costs, e.g. by saving expansive roaming fees and data packages, are only one benefit.

Why eSIM is the talk of users, company’s and the mobile industry today?

• Convenience: Networks can be switched easily and without physical handling, anywhere in the world.

• Seamless mobile experiences: Several devices such as wearables, tablets, and maybe even laptops can remotely and seamlessly connect to a network operator.

• eSIM isn’t easy to hack: Hackers must pivot through a billing-process security feature and the cloud to intrude into your phone details while in a roaming situation.

• Manageable devices: Because eSIMs are about half the size of Nano SIMs and no longer require a socket, they easily fit within tiny devices.

• Competitive market: Shifting to a competitive mobile network operator with better services is a tap away.

• User Experience: The onboarding into a new network has gotten more straightforward and faster, thus improving the user experience. Also, because the eSIM is rewritable, changing an operator is as effortless as a phone call.

• eSIM is easy to locate: Network providers can control eSIM over the air, which makes your location easier to find in case your phone becomes lost or stolen.

• Durability: Because eSIMs aren’t removable, losses due to damage, vibration, and extreme temperature are eliminated.

• Innovate: The design problem of managing a SIM card slot no longer applies, thus giving the manufacturers a window to innovate and bring forward applications they could never have considered before

The TDSoftware team is very proud to have been part of this journey from the very beginning. Our partner, DENT Wireless Limited, became the world's first digital and mobile operator during this past year. By collaborating with a world leader in eSIM management and together with DENT we will continue to build and create products for the future!

The next article is about how eSIM works in detail and will include some eSIM market trends and insights for 2021. Stay tuned!