How eSIM are Shaping the Future of MNOs

Share:
- Copy this linkLink copied to clipboard
Share:
- Copy this linkLink copied to clipboard
Revolutions are transformative and unpredictable. As progress redefines the status quo, new opportunities are sure to appear for those visionaries and trailblazers with the foresight to break new ground.
When a major technological advancement disrupts an industry, it's good news for those who are willing to take the lead.
The embedded SIM (eSIM) has proven to be exactly this kind of game-changing development, as it continues to reshape the mobile industry. The impact of this new technology has been felt by everyone involved, from consumers to chipset manufacturers to everyone in between.
The Revolution Continues
It's no longer a matter of if eSIM catches on, or even of when, but of who is best taking advantage of it.
An eSIM is a rewritable chip, soldered directly onto a device's motherboard. Essentially, it made the older style removable SIM cards obsolete, although they do still have relevance in the IoT market. With an eSIM, plans and contracts are downloaded directly, so connecting your device and getting online takes just seconds once you've bought your device. This saves time for consumers and has opened up a variety of possibilities for everyone else in the value chain.
One group that took the advantages of eSIM seriously from an early stage are mobile network operators (MNOs) and mobile virtual network operators (MVNOs). According to a popular study by ROCCO, 80% of MNOs see eSIM as the replacement for removable SIM card and more than 20% are developing new eSIM-related projects to bring to market.
Smooth Operators
There are a range of specific benefits that MNOs and MVNOs enjoy with eSIM. A major driver has been the scope for new and dynamic partnerships within the manufacturing chain itself.
In an industry where connectivity is key, separation and isolation are still all too common, but the smart MNOs have moved to form more profitable and fruitful bonds with other essential industry elements, from OEMs and ODMs to fabless chipset manufactures and software designers. MVNOs have already demonstrated how effective an industry-dependent strategy can be.
For example, as eSIM became the industry standard, MNOs sought deals with chipset companies to guarantee that specific networks were the recommended or even exclusive connectivity option on the hardware.
Upstream Partnerships
Alternatively, MNOs cut similar deals a few steps further along the supply line by working directly with the OEMs and incentivizing the pairing of their devices with certain operators, making every device produced a win for the MNO before it even hits the stores. With the old removable SIM cards, this just wouldn't have been an option.
Because operator models are built around customer service, they tend to be primed to own more of the customer experience, more so than other players in the value chain. So, while the natural succession of the customer relationship has often fallen into the laps of OEMs, it's worth noting that many of them have little idea about how to engage with their customers post-sale, much less the business ecosystem in place to provide an as-a-service model for their devices.
Operators, on the other hand, have been capitalizing on the opportunity to create new products which demonstrate their commitment to hassle-free device management and customer service beyond what most other companies could offer.
The Future
There are still major rewards waiting to be realized from the advancement of IoT technology. Embedded SIMs were the missing piece in the Internet of Things and, as they became increasingly widespread, so too did IoT-enabled devices. An ever-expanding IoT means an a constantly growing need for stable network connectivity.
To really optimize the strengths of IoT, smart devices need to be able to communicate continuously, without losing signal when they leave Wi-Fi zones and hotspots. With an eSIM in anything from your shoes to your wallet, network operators have an even more essential role to play. It’s not just about keeping phones on the grid. Careers, exercise, recreation and entire digital lifestyles increasingly depend on constant connectivity, and the embedded SIM allows MNOs to offer that in ways they never could before.
For MNOs and MVNOs, the direction that the IoT and eSIM tech continues to grow in is good news. Innovative new deals to be struck, unprecedented IoT opportunities, and the chance to cement their place in consumers' lives for many decades to come.
Find out how 1GLOBAL is building a better future, here.
About 1GLOBAL
1GLOBAL is a distinguished international provider of specialty telecommunications services catering to Global Enterprises, Financial Institutions, IoT, Mobile Operators and Tech & Travel companies. 1GLOBAL is an eSIM pioneer, a fully accredited and GSMA-certified telco, a full MVNO in nine countries, fully regulated in 42 countries, and covers 190+ countries.
It delivers comprehensive communication solutions that encompass Voice, Data & SMS - all supported by a unique global core network. It’s constantly expanding portfolio of advanced products and services includes White Label eSIMs, Connectivity Solutions, Compliance and Recording, Consumer & M2M SIM Provisioning and an Entitlement Server.
