5G and cloud have created the perfect backdrop for widespread eSIM adoption and the convenience and cost-saving benefits of eSIM go beyond mobile phones. The technology will change how we interact with other electronic devices too, says Yuval Mayron, general manager for IoT at Amdocs.
The eSIM makes it possible to apply cellular connectivity to all consumer electronic devices. eSIM supported by 5G and private networks will make the leap into the mainstream. eSIM is a revolutionary technology and telcos must consider its adoption in the context of the entire ecosystem.
Supporting its implementation requires new strategies and processes. Everyone knows how SIM cards work, but the logistics of changing a tiny piece of plastic every time you want to switch mobile network provider, especially when you travel, is cumbersome and frustrating.
The same can be said for waiting for a new SIM card to arrive. Not many digital services require the user to wait days between order and activation- so why can’t we put the SIM experience on a par with the frictionless digital processes that today’s consumer expects?
An eSIM allows the user to change their service provider in an instant. eSIM is the key to modernising the telecoms user experience to meet consumer expectations.
5G allows cellular data to be handled in new and exciting ways. It means the cost of connectivity is no longer a barrier and the same can be said for battery life. Indeed, using 5G, an IoT device can work continuously for almost a decade without the battery being replaced. Cloud technologies allow vast amounts of data to be managed and monetised cost-effectively.
With eSIM, the manufacturer can add services and features remotely and instantly. Customers can change their subscriptions quickly without handling hardware, just like they can with services like video streaming. Users can access multiple digital profiles and service plans and switch instantly with the same device.
There is a real consumer appetite for eSIM, too. Amdocs research found that 81 per cent of consumers are either actively in favour or open to an eSIM-only future for smartphones. Only compared to just 19 per cent who said they aren’t ready. Consumers who want their mobile provider to integrate eSIM into their offering outnumber those who don’t by nearly four to one.
Consumers like the ability to switch providers and plans in an instant. A third of the 2,500 consumers surveyed across the US, UK and Australia describing this as the biggest benefit of eSIM technology.
eSIM allows telcos to deliver the instant digital experiences consumers expect. By removing the logistics of handling physical SIM cards, a telco can reach its customers worldwide through digital channels at a lower cost.
Standards on manufacturers, device types, or operating systems no longer matter. New considerations will revolve around how we transfer digital profiles among different devices to create a seamless user flow. Operators must deliver capabilities on par with plastic SIM cards while creating an intuitive, simple, flexible, and functional experience.
While Apple and Google work side by side with operators, telcos are ultimately responsible for the customer relationships. Service providers must develop their own experiences in parallel to differentiate their offerings.
Consumers want to manage their communications with a network with a phone call or chat conversation. They don’t want visit a store to install and activate a SIM card. Call centres must be equipped to push updates and features to customers’ devices over the air just like other digital services.
Connecting the dots among all the networks, providers, devices and touch points is easier said than done. Telcos must navigate a legacy infrastructure, complexities, processes, and experiences to support eSIM adoption with new business processes. They need to deliver ‘one-click’ activation, not 25 clicks.
We’re just scratching the surface of eSIM’s potential. Subscription has become fluid, and access can be adjusted on the fly to deliver the best experience at the right time. It has the flexibility to be updated with capabilities to support endless use cases.
We all know what happens when Apple makes a move. The anouncement of an eSIM-only variant of the iPhone 14 has the potential to turbo-charge the rise of eSIM.
If you want to control customer relationships, deliver the best end-to-end experience, drive revenue with value-added services, and differentiate yourself in the market now is the time to jump on the eSIM bandwagon.