How Remote SIM Provisioning reshaped the connectivity business (Part II)

In our new two-part series, we explore the impact on Remote SIM Provisioning on every aspect of the telecommunications industry, from personal smartphones to connected industrial machinery.

Part 1 explored the origins of RSP and how SIM provisioning and eSIMs are combining to fundamentally transform the telco industry.

In Part 2, we delve deeper into how eSIMs and RSP have transformed the customer dynamics within the telco space and reveal how different brands are preparing for the increased need for eSIMs.

The eSIM: new customer dynamics

Before the rise of the eSIM, the typical telecommunications model was founded on long-term relationships. Signing a multi-year contract, usually between 12-36 months, was a standard arrangement for new customers with domestic mobile operators. With SIM cards, switching from one provider to another was a time-consuming process, requiring individual agreements from both operators and physical delivery of a new SIM card.

This has all changed with eSIM. With the ability to store multiple eSIM profiles, often from different operators, on the same phone, customers can change between network providers in seconds — for example, connecting to a local provider abroad to avoid roaming fees.

Counterintuitively, this ease of switching can actually lead to stronger relationships between operators and customers.

For consumers, the option to purchase short-term eSIMs and change providers instantly is undoubtedly a value add. A downside is an uneven user experience and inconsistent network performance across different providers. For operators, it provides new opportunities to deliver innovative services that respond to short-term needs and market trends. By bundling eSIM services like short-term travel SIMs or smartwatch plans with their existing long-term domestic plans, operators can supply their customers with products and drive retention by delivering a consistent and familiar user experience across a wider range of connectivity services.

Already, established telcos are harnessing eSIM tech to develop new services for existing and potential customers. In 2024, the traditional telco giant Vodafone launched its own travel eSIM service, offering new and existing customers the opportunity to purchase temporary eSIM mobile data to use when roaming abroad.

The increased availability of eSIM and RSP services has correlated with a sharp rise in the number of connected wearables like smartwatches and fitness trackers, offering a brand-new market for operators to explore. Due to their compact dimensions and focus on lightweight portability, eSIM technology is perfectly suited to wearable tech as it negates the need for a bulky internal SIM tray and card. This growing market has made consumer RSP an increasingly valuable field.

Verizon's wide range of prepaid smartwatch eSIM plans and bundled smartwatch+phone data plans, are examples of how MNOs are responding to, and embracing, the new opportunities the eSIM digital revolution has unearthed.

RSP in action: Freenet travel eSIMs

Freenet AG is one of the largest telecommunications providers in Germany, with over 9.5 million subscribers. In 2024, they partnered with eSIM pioneers and RSP service providers 1GLOBAL to provide their own short-term travel eSIMs, available in the freenet app.

Founded in 2007, freenet are a clear example of how long-established telcos are adapting to the eSIM revolution by integrating innovative eSIM and RSP services into their product suite.

Brands like freenet have shown how much telcos have to benefit from this transition, provided they proactively incorporate new technologies into services, establish a clear and sustainable RSP strategy, and maintain their core service and customer experience.

Forward-looking operators who implement a flexible, scalable RSP structure can leverage this shifting market to integrate new eSIM services into their offering, thereby widening their customer base, driving new customer acquisition, and, crucially, improving customer retention. RSP is a key component of the wider digital transformation strategy.

The end of the SIM card?

Whether eSIMs will totally replace SIM cards is an open question. Traditional chipmakers are racing to Across the industry, SIM card companies are responding in different ways: Giesecke+Devrient, manufacturers of the first ever SIM card in 1991, launched an in-house eSIM services department. Meanwhile, digital-first eSIM experts like 1GLOBAL have have embraced this shift to supply eSIM solutions to dozens of multinational partners.

While the projected rise of eSIM is likely to make the value of the SIM card industry a fraction of what it was a decade ago, there are still specific cases, particularly in the IoT field, where physical SIMs remain the most efficient or cost-effective solution.

• Many IoT SIMs are designed to resist extreme environments and years of constant usage, providing them with greater longevity than a consumer SIM and therefore less incentive to replace them.

• Older devices, including IoT devices retrofitted for SIM connectivity, are rarely eSIM-compatible, and companies with large fleets of these may still find it more efficient to continue using SIM cards rather than replace the fleet.

1GLOBAL IoT solutions provide a range of both pSIM and eSIM solutions for multinational IoT businesses, offering flexible connectivity for a wide range of device fleets. In the long-term, the continuing digital revolution of the telecoms space will make ready eSIM connectivity and scalable RSP services essential to any operator.

The future

So what will the mobile landscape look like as eSIMs continue their progress towards mass adoption? And which other emerging technologies will define the operator-customer relationship?

Already, advances in nascent services like edge computing and enterprise 5G are seeing real-world applications: the low power consumption and latency of private 5G networks makes them ideal for delivering reliable mobile signal in localized industrial areas like ports and factories. The IoT space requires a scalable connectivity strategy: RSP supports this growth by enabling instant worldwide SIM deployment and monitoring at scale. New standards in IoT connectivity, like the GSMA's SGP.32 roadmap, highlight the centrality of the eSIM and RSP to the future of the IoT industry. SGP.32 was specifically designed to accelerate the uptake of eSIMs in commercial devices and adequately prepare IoT industries for the increased demand of the coming years.

The digital revolution is still ongoing, and even the largest and most long-established network providers have demonstrated innovative ways to utilize and incorporate new technologies like eSIM and RSP in their own services. As eSIM pioneers, 1GLOBAL have a proven record of delivering scalable, flexible and highly personalized RSP solutions to multinational organizations across a range of industries. Contact our team directly to learn more.