How eSIM Technology is Pushing the Boundaries of Telco Connectivity (Part II)

The invention of the eSIM has proven to be one of the most significant developments in the history of telecommunications. In Part 1 of our guide to the eSIM transformation, we revealed why eSIMs are supplanting SIM cards and examined the initial industry reaction to eSIM in both Internet of Things (IoT) and consumer mobile spaces.

Here, we explore how eSIMs have altered the traditional operator-customer model, how established telcos and innovative new startups are exploring the full extent of the technology, and what the future of eSIM means for individuals and businesses.

Today's mobile landscape

Some 34 years after the first SIM card appeared, the way we use mobile devices and data networks has transformed completely. Mobile internet, rather than calls or SMS messages, now accounts for the majority of mobile data usage. A portable internet connection has steadily become near-essential to many aspects of modern life. Everyday tasks, from personal banking to hailing a taxi or viewing a menu, increasingly take a portable internet connection for granted. In this era of the “always online” consumer, worldwide data demands have skyrocketed. The average smartphone user consumes more than twice as much mobile data as they did just five years ago – by 2030, this is predicted to double again.

Mobile operators must be able to cater to this demand and have a framework in place that allows for rapid growth while maintaining a high level of service, security, and customer privacy. eSIMs are a potential key to this.

New format, new opportunities

As with any transformational market shift, the eSIM era brings opportunities as well as challenges. New ways of using mobile data, such as travel eSIMs, allow mobile operators the ability to offer their customers a wider range of services and develop sustainable new revenue streams.

Initially, some industry figures feared that the simple network switching eSIMs enable may impact their customer relationships and increase churn: traditional mobile operators build their model on lengthy, reliable customer relationships spanning 24 or 36-month agreements. Breaking free from a long-term mobile contract and SIM card was often a lengthy process, with devices “locked” to specific providers.

The instantly switchable capability of eSIM profiles has the potential to upend this dynamic. In an evolving market, many forward-thinking network providers have found that the new eSIM landscape instead offers new ways to strengthen brand loyalty and increase retention. The added flexibility and wide range of uses have led to new eSIM-based products, services, and payment plans that benefit both customer and operator.

A 2024 survey of mobile network managers identified five key revenue benefits to eSIM adoption for mobile operators:

1. Reduced churn rates

2. An increase in IoT business volume

3. More personalized services

4. An improved customer onboarding experience

5. Increased roaming revenue

The variety of these potential benefits and the degree to which they appear throughout the customer-operator relationship illustrate the long-term advantages to pivoting towards increased eSIM adoption.

While eSIM isn’t yet poised to totally replace the SIM card (in the short to mid-term, most experts expect to continue to offer a hybrid “long-tail” model of eSIM and SIM card options), the technology is becoming increasingly viable as a long-term connectivity solution and an integral part of a sustainable and scalable mobile industry.

The hidden benefits of eSIM for mobile operators

While eSIMs make it easy for users to switch between operators, by the same token, they make it simple to install and access a new operator’s network. This has enabled the rise of short-term eSIM products, such as travel eSIMs to avoid roaming fees in specific countries, or shareable mobile data packages. Operators can diversify their offering by integrating these eSIM products into their regular, longer-term domestic plans, encouraging both customer acquisition and retention.

Currently, eSIM functionality is still perceived as a premium smartphone feature, associated with recent high-end models. As previously mentioned, manufacturers are partially responsible for the new eSIM demand: by ensuring a viable, scalable RSP and eSIM service, mobile operators can ensure new and existing customers have access to these eSIM-enabled handsets through their own eSIM mobile plans.

RSP and eSIM technology have also allowed a new branch of telecoms to flourish: digital-first eSIM experts like 1GLOBAL have leveraged their knowledge of the emerging technology to deliver flexible, easily implementable eSIM services with rapid go-to-market times to partners across varied industries. 1GLOBAL alone has helped dozens of telcos, financial institutions, airlines, and more to implement their own eSIM products.

Ultimately, eSIMs make it easier to get online anywhere in the world. For digital-first brands like telcos, this means increased customer engagement: the easier it is to get online, the easier it is to access the operator’s website or app or download add-ons like streaming services or travel eSIMs that are available as part of a regular mobile phone subscription.

This “bundling” of digital services is a new phenomenon, driven in no small part by eSIMs. Increasingly, operators are providing services and products outside of traditional telecommunications as part of their offerings.

For operators, this helps safeguard customer retention and offers an important value add for prospective new clients. For customers, it offers many of the advantages of short-term eSIM profiles within a familiar UI and a trusted provider.

The eSIM knowledge gap

As the standard SIM format for over 30 years, the plastic SIM card is often conflated with the digital SIM data it stores. Public awareness of eSIM and alternative SIM formats has doubled in the last two years, aided by events like the eSIM-only iPhone launch. Despite this growth, the mobile industry body GSMA has identified raising the public profile of eSIM as a key goal for the telecommunications industry.

A report on UK smartphone owners in 2025 exposed this knowledge gap, revealing that only 18% of respondents had used an eSIM, although most were interested in using one after learning more about the technology.

While the advantages of eSIM are clear to operators and manufacturers, public awareness must increase to deliver the global potential of the technology. eSIM-only products like travel SIMs or cellular smartwatches are fast-growing markets that have helped to advertise the profile and potential of eSIM to a wider public: telcos must capitalize on this shift to deliver viable, secure eSIM services to new and existing customers.

Together with standards like SGP.32, the GSMA’s roadmap to accelerating eSIM adoption, and eSIM-first innovators like 1GLOBAL, the IoT and consumer mobile industries can build on the emerging popularity of eSIM and prepare for the predicted spike in global mobile data requirements in the coming years.

1GLOBAL eSIM services

1GLOBAL is a digital-first telco and eSIM pioneer that has distributed over 50 million eSIM profiles worldwide. We’ve helped a wide range of clients, from MNOs to financial institutions and global enterprises, prepare for their digital future. Find out how your business can integrate 1GLOBAL eSIM solutions and speak to our team today.