Ever wondered why your cutting edge $1,000 smartphone powered by over a dozen powerful microchips still needs a tiny external chip known as the SIM card to work? The SIM cards have evolved over the past decades with nano SIM cards being the latest requirement for most smartphones. But do we still need a physical SIM card? Well, we DON’T! Finally, the phone manufacturers are incorporating the required hardware into your phone that enables it to connect to a network without needing a physical SIM card. This functionality is commonly referred to as the eSIM.
You still need a valid subscription from a mobile operator to get online. This is where several tech startups such as Mobimatter (a Glowfish Venture), Airalo and Travelsim are focusing and disrupting the telecom industry by fully digitizing the subscription purchase experience while offering an order of magnitude more choices to customers. The feedback from eSIM users has been stellar and this makes us super excited about the projected steep rise of the eSIM. It is widely expected that eSIM will eliminate the physical SIM card within the next few years. Here are a few reasons why this is an exciting development for the Telecom industry and its customers globally –
- Innovative product offerings and better prices. The eSIM’s ability to drive digital subscription has been phenomenal for customers as they now have access to hundreds of subscription offers in every market. Historically, the customers could only buy a subscription from two to three local market operators due to the strength of their physical distribution network. In some markets, a few additional MVNOs (virtual operators) were successful in creating meaningful distribution networks that offered the customers in those markets a few more choices. However, with eSIM, customers in any market have a choice to buy their telecom services from tens of operators offering hundreds of innovative packages with validities ranging from a week to a month to 3 months to an year. Customers can buy a one-off package or a recurring monthly subscription – the choices have exploded. And with all this choice and competition comes better pricing. As an example, you can now buy a one week 1GB subscription for most Western European markets and USA for $5. Similarly, 10 GB monthly packages in these markets are now available for $20 that is much cheaper than the prevalent market offers.
- Hassle-free instant installation. Most big operators around the world are adopting eSIMs and offering their customers the option to continue using the physical SIM card or simply download an eSIM and enjoy their network services in the same way with one big difference – you can download the eSIM on your phone using your home WiFi network and activate it instantly. No need to get in your car and physically visit the operator store and suffer the long queues. Now some will argue that several operators accept online SIM card orders and deliver the physical SIM to your home. Well, that still takes hours in efficient markets and days in most of the other markets. With eSIM, it only takes a few minutes to download and activate your connection. And for those who are wondering about the KYC requirements imposed by the local governments, these are also getting taken care of by online processes that are quick and do not require submission of any paper copies.
- Ease of getting a local mobile subscription while traveling. Who amongst us hasn’t been worried about the exorbitant roaming charges? This worry is very real and very material. Recently, one of our colleagues incurred a $950 roaming charge for accidentally using 50MB of data while visiting a foreign country; one of the background app refreshes was the culprit. No wonder it is super popular for travelers to buy a local SIM card when they arrive in a new country to avoid these high roaming charges. Estimates suggest that over 90% of travelers end up purchasing a local SIM card on their foreign trips to avoid mobile roaming charges. The most popular points of purchase are the operator kiosks at the arrival airports that are often crowded with hundreds of travelers wanting to get their hands on a mobile SIM. Well, with eSIM, travelers don’t need to do that anymore. One can purchase and install the eSIM for their destination country even before getting on their flight, and simply turn on the local eSIM upon landing to be online once again bypassing the hassle of finding the operator kiosks and waiting in lines. Several online players such as Mobimatter.com (a Glowfish venture) – are offering eSIMs specifically for travelers to meet their connectivity needs while traveling.
- Instantly turn your phone into a dual SIM phone. This is a great additional feature that most people don’t know about and are thrilled to find out. Most of the latest iPhones (XR and above) have the eSIM functionality embedded in them. So, if you already have a physical SIM card from your operator, you can use the additional eSIM functionality to turn your phone into a dual SIM phone. No need to carry an additional phone while traveling, simply install an eSIM for the place you are visiting while your primary connection remains active as well. You can easily move the data connection to your visiting country eSIM and avoid data roaming charges while still retaining the flexibility to accept calls on your primary home country line. The eSIM usage isn’t just limited to travel – several customers use it to have a second mobile connection within their home markets to better manage business and personal usage without having to carry two phones. Apart from iPhones, other phones with inbuilt eSIM functionality are Google Pixel 3A and above, Samsung Galaxy S20 and above, Samsung Galaxy Z Flip, Huawei P40, P40 Pro, Motorola Razr 2019 etc. And this trend is expected to accelerate whereby all smartphones within a few years will have the eSIM capability.