The Top 5 Embedded Telco Trends for 2026

2025 was the most successful year on record for the eSIM industry. Notable developments included the release of the eSIM-only iPhone Air, which underlined Apple’s push for global eSIM adoption; the ongoing rollout of 5G data networks, spurring further demand for easy-to-use mobile data plans; and a sharp increase in the number of non-telecoms companies branching out into mobile data services.

This latest development is made possible through the emerging connectivity-as-a-service industry, where specialist eSIM providers like 1GLOBAL enable other brands to resell connectivity products through their own digital platforms and branding.

Here are (according to us) the Top Five trends that will define embedded telco in 2026.

1. The eSIM goes global

2. More eSIM-enabled hardware

3. Super apps

4. Banks as telcos

5. MNO eSIMs

Many of these trends overlap to some degree: eSIMs have led to a convergence of digital products among previously siloed industries. Embedded telco, or the discipline of incorporating telecommunications products and services into an existing digital platform, is a clear example.

While embedded telco products were previously the domain of the Internet of Things (IoT) and specialist telecommunications providers, they can now be found on the websites and apps of diverse industries, from supermarkets to airlines.

Embedded telco, also known as embedded connectivity, is set to play an increasingly important role in shaping the telecommunications industry. And as the technology continues to gain traction, we look at some of the most likely growth areas that will define the sector in 2026.

1. The eSIM goes global

The widespread adoption of eSIMs and the simultaneous decrease in physical SIM card usage have been clearly observable trends for years. Late 2025, however, provided the largest indication yet of the technology’s mass adoption. Counterpoint Research predicts that by 2030, almost 70% of all smartphones will support eSIM technology.

In September, Apple officially launched the next generation of iPhone, debuting the iPhone 17, 17 Pro, 17 Pro Max, and Air models. While each of these smartphones boasts a raft of new cosmetic and performance upgrades over the previous generation, the most significant change concerns their connectivity.

The 17, Pro, and Pro Max are available as eSIM-only variations. The Air, meanwhile, is only available with eSIM connectivity, regardless of location. This commitment to eSIM by the world’s most popular hardware manufacturer was a clear message to the telecommunications world: physical SIM cards are no longer a necessity, or even desirable.

Most notable is the release of the Air, which is already responsible for global change. For years, the sale of eSIM-enabled smartphones in mainland China has been strictly prohibited on a number of economic and security grounds. Such is the influence of Apple, and the worldwide demand for the latest iPhone, that the Chinese government relaxed its own legislation to allow the Air into the domestic market.

The eSIM landscape in China is changing fast – according to a recent YouGov poll, the country is one of the largest travel markets for eSIMs in the world, boosted by vast outbound flight numbers, while per-capita demand for travel eSIMs has overtaken the US and the UK. The release of the iPhone Air and the subsequent government response marked a turning point in global eSIM adoption rates.

2. eSIM-enabled hardware

Just as the public demand for eSIMs is causing governments to reconsider their mobile policies, manufacturers are also changing tack. Until very recently, eSIM smartphone connectivity was largely reserved for top-of-the-line models.

Starting this year, eSIM connectivity, whether dual-SIM (simultaneous support for eSIMs and SIM cards) or solely eSIM, is an increasingly common feature in mid-range and budget handsets.

In the wake of the iPhone 17 and Air, expect this feature to permeate further through the hardware market. Currently available examples include the Motorola Edge 50 Neo (a budget-friendly version of the Edge 50 Pro) and the Japanese market release of the Nothing Phone (3a), itself a takedown model of the Nothing Phone (3).

2026 will see a key shift in consumer perception of eSIM technology: it will become a standard expectation, rather than a premium feature. This pattern is expected to be amplified worldwide, as the increasing availability and affordability of eSIMs spreads.

As mobile hardware becomes more accommodating towards eSIMs, software and apps are following suit.

3. Super apps

The mass adoption of eSIMs sits at the heart of the embedded telco sector. Once a large enough portion of their customer base becomes familiar with eSIMs, digital platforms are incentivized to offer them eSIM-based services and embedded connectivity. Now that mobile connectivity is no longer determined by chipmakers and physical SIM cards, nearly any brand with a digital presence has the potential to offer white-label eSIM connectivity plans to its customers.

The degree of control and customization these eSIM plans have varies greatly: some companies simply resell eSIM services from a mobile operator under their own branding. While this allows rapid market entry, with minimal technical know-how, it limits brands’ ability to control the coverage, pricing, and connectivity of their eSIM plans.

Others partner with “full” MVNOs like 1GLOBAL that own a large portion of their own network infrastructure, allowing the resellers to define the connectivity, coverage, and pricing of their white-labelled eSIM plans. These multifaceted digital platforms, or "super apps", offer diverse services, from shopping to banking and connectivity.

Super apps are a relatively new digital service that gained traction throughout 2025. The super app format is expected to become a regular aspect of the 2026 digital experience, as embedded telco services continue to grow in sophistication and eSIM adoption rates climb further.

Examples like WeChat in China or Grab in Southeast Asia have enormous regional user bases – as the model continues to gain prominence, these brands could go global in the near future. Key to this growth is the integration of eSIM-based connectivity services like travel eSIMs and domestic mobile plans.

Telecommunications was previously a ring-fenced industry, isolated by the wealth of specialist knowledge and physical infrastructure required to manufacture, configure, and distribute SIM cards. Now, the market is open to nearly any brand with a digital presence. Embedded telco will likely become part of everyday consumer mobile behavior, and a familiar sight in bundled super apps.

One of the most significant offshoots of the super app space is the world of digital-only neobanks.

4. Banks as mobile providers

In the last decade, digital banks have evolved from providers of user-friendly, feature-light current accounts to fully-fledged financial service platforms, acting as serious alternatives to brick-and-mortar institutions.

In 2026, these “neobanks”, or app-only financial service providers, are projected to continue their rise at a compounded annual growth rate (CAGR) of 46%.

Much of this success has to do with their ability to rapidly incorporate and offer new digital products within their ecosystems.

The majority of neobanks were initially conceived as an accompaniment to a traditional bank account, targeted at a digital-savvy audience. As smartphone sophistication and public familiarity grew, neobanks began to challenge the old guard, offering analogous services, from savings accounts to investment portfolios, loans, and mortgages.

Now, their ability to rapidly roll out new digital services and features can make them a more attractive option than legacy banks. Many neobanks claim to combine the flexibility of a tech brand with the stability of a traditional bank.

Some, like the UK-based Starling Bank, have even white-labelled their own banking systems, allowing other brands to offer banking services through their own channels, a process known as Banking as a Service (BaaS).

Like many tech brands, neobanks face significant challenges in profitability and security, though their customer numbers are still projected to climb throughout 2026. Globally, the digital-only banking sector is projected to show sustained growth over at least the next five years. The value is being recognized by the traditional banking sector too – as of 2025, over three-quarters of Americans use mobile banking apps (both from traditional and digital-only services).

In such a crowded field, different brands are rushing to innovate and employ new features to stand out from the competition. Embedded connectivity plans play a key role in this strategy.

Many are drawing from the super app model and offering features outside of traditional financial services, like embedded telco. The German digital bank N26 recently embedded 1GLOBAL connectivity services within its offering, allowing account holders to purchase travel eSIM data within the N26 app. Soon after, they expanded their service to include domestic data plans. In 2026, more banks and fintechs will likely offer branded mobile connectivity, powered by partnerships with MVNOs and eSIM providers. Much like super apps, this bundling of previously disparate digital products will become increasingly common.

Addressing security and privacy concerns while continuing to deliver a smooth customer experience and incorporating new services will be a key challenge for the digital finance industry in 2026.

5. MNO eSIMs

In the same ways that brick-and-mortar banks are adapting their services to challenge neobanks, legacy MNOs are adopting more digital services in response to the rapid rise of MVNOs and embedded telco.

• Unlike a traditional mobile network operator (MNO), a mobile virtual network operator doesn’t own the infrastructure and mobile masts that grant them access to the wireless spectrum – instead, they lease this access from an MNO. This allows MVNOs the ability to provide telecommunications services without the investment required to build a physical network.

• Mobile virtual network enablers (MVNEs) are specialist telecoms companies that enable MVNOs by providing technical support and handling specialist tasks, from negotiating roaming agreements to customer service. By working with an MVNE, nearly any digital brand can become an MVNO.

These two factors are responsible for the recent proliferation of MVNOs – analysts estimate there are around 2,000 active MVNOs. Between 2024 and 2029, the industry is predicted to undergo a 40% increase. For traditional telco operators, it’s essential to adapt to this new market landscape, working with the new brands and offering their own customers similarly tech-forward and innovative solutions.

One of Germany’s largest mobile operators, freenet, joined forces with 1GLOBAL in 2024 to launch its own in-house travel eSIM offering.

freenet customers can now purchase 1GLOBAL-powered eSIM plans directly in the freenet app, rather than turning to a distinct travel eSIM provider. For customers, this provides a familiar, trusted, and straightforward way to access travel data. For freenet, the service boosts customer retention and reinforces their brand perception as a progressive mobile provider.

This is just one example of how MVNOs and embedded telco can benefit, rather than challenge, larger network operators. Going forward, it’s likely that traditional operators will continue to incorporate agile MVNO-style services into their offerings and harness the full potential of eSIMs.

Preparing for 2026

What makes trend forecasting for embedded telco so fascinating (and speculative) is how open-ended it is: practically every industry has a digital presence, and practically any entity with a digital presence has the potential to join the embedded connectivity space. The possibilities are near-endless.

Worldwide eSIM adoption, eSIM-enabled hardware, super apps, digital banking, and MNO eSIM services are all shared symptoms of a wider trend: the convergence of digital behaviour.

Simplicity, speed, and customization are the defining traits of the future customer experience. As smartphones become increasingly available and sophisticated, and 5G data networks provide ever-faster mobile data connections, consumer expectations are evolving. Balancing these demands with pressing environmental concerns and the unprecedented growth of the AI industry is a continual challenge — one that requires a unified outlook.

1GLOBAL is an eSIM industry leader with a range of expertise that covers the embedded telco, travel, IoT, and enterprise connectivity sectors.

We help brands develop unified, scalable telecoms solutions that actively prepare them for the future. With global coverage, a single unified management platform, and a suite of automation-ready APIs that integrate with any existing backend, 1GLOBAL embedded connectivity solutions are ready for the future of telecoms, whatever shape that may take.

Learn more about our partnerships, or contact our team directly to use 1GLOBAL embedded telco services with your brand.