The conventional SIM card has been integral for device connectivity for almost three decades.
The arrival of eSIMs will remove space constraints greatly benefiting IoT devices and wearables.
Although eSIMs can be seen as a threat to telcos - as they enable a more efficient churn process - we believe the benefits of eSIMs outweigh the risks.
The conventional SIM card has been in use since 1991, enabling connectivity to billions of mobile devices around the world. Over the years it has seen a reduction in its size even as its main purpose remains the same – essentially providing an ID to the device for the network to keep track of during connectivity. However, as devices become more powerful and feature packed, internal space has become a major constraint. New device types such as wearables also have a different set of requirements from mobile devices, namely they must be small and lightweight.
SIM cards getting the embedded treatment
The eSIMs market
Current devices with eSIM support
Telstra offering eSIM support for Windows 10 support
Consumers and device manufactures are the winners
Power to the consumers
More options for device manufacturers
Double edged sword for telcos
Impacts and changes for business models
eSIMs – the future of connected mobile devices
List of charts/tables
Figure 1. Conventional SIM activation
Figure 2. eSIM activation
Figure 3. Switching between providers using eSIMs
Figure 4. Industry stakeholders that support eSIMs