eSIM the opportunity for MVNOs, join the revolution

With the number of eSIM-compatible devices set to balloon in coming years, now’s the time for MVNOs to harness the opportunities 

Just as it did with the headphone jack, Apple has moved to do away with the SIM card tray, releasing the eSIM-only iPhone 14 last year. With eSIM-only phones in the US and soon to be Europe, and dual-SIM phones in Australia, it’s clear where the industry is heading. 

It’s not just Apple leading the charge, with Google and Samsung developing eSIM-only Android devices. Looking ahead, there is expected to be 3.5 billion eSIM-enabled smartphones by 2027, according to Juniper Research, in a market worth US$16.3 billion.

For a mobile virtual network operators (MVNOs) in Australia, there’s a significant new opportunity to harness these innovations. MVNOs can help to future proof their businesses by adapting their service offerings and keeping up with changing customer needs.

Boosting green credentials with eSIM

eSIM is a game changer, redefining the way phones connect to a mobile network, improving the customer experience and paving the way for a raft of new service offerings. Optus, the first mobile network provider in Australia to offer its customers this capability, launched its eSIM offering for MVNOs in 2022, offering its wholesale partners a simpler, more sustainable and convenient network connection service for their customers.

An embedded SIM (eSIM) is a digital SIM built into compatible devices such as phones, where instead of a physical SIM card that connects to the mobile network, users download an eSIM profile for network connectivity. By adopting Optus Wholesale eSIM capability, MVNO customers benefit from a digital, quick, streamlined activation experience with a more positive environmental impact.

Without the need for physical SIM cards, there’s a positive impact on warehousing and inventory management, potentially reducing costs. It can also minimise the logistical issues of delivery and waiting for physical SIM cards to arrive, improving the customer connection experience. Customer connection time can potentially be reduced from days to minutes, enabling a quicker, streamlined experience with the business, positively impacting perception of the brand with customers.

With consumers more environmentally conscious than ever, and many expecting brands to set a good example, proving environmental credentials is increasingly important for all brands, including telcos and MVNOs. Without the need for physical SIM cards, eSIMS offer the added benefit of minimising the environmental impact caused by the process of manufacturing, packaging and waste disposal. Adopting eSIM technology, combined with supporting  paperless billing and recycling devices, MVNOs can support their customers' desire to reduce their environmental footprint.

A game-changing technology for smaller telcos

With eSIM technology, consumers benefit from broader network selection, providers have new customer touchpoints and it opens up a host of new services for MVNOs, McKinsey has said, predicting that disruptive business models will be created through the adoption of eSIMs.

Powered by the Optus network, eSIM can help enable MVNOs to better compete with larger, entrenched mobile providers. Offering a simple, completely digital process, it’s easier for customers to switch providers without needing to mess about swapping with physical SIM cards.

Reducing the need for physical SIM cards allows for greater flexibility and scalability for MVNOs. Through a website or app, registering, paying and onboarding can be a completely digital experience, doing away with the need to visit a physical store.

Adopting eSIM, smaller telcos could have the potential to compete with bigger players by offering new services while shielding them from increasing costs related to manufacturing and transport. They’re not reliant on chip production, nor dependent on supply chains, which have been shown to be extremely vulnerable to global issues, as evidenced during the pandemic over the last few years.

As eSIM enables a range of devices to be connected, it opens up new possibilities to drive customer retention and revenue, with the potential for more devices, new markets and subscriber services across the customer base.

Enabling innovation for MVNOs and their customers 

eSIM technology is a disruptor coming to the telecommunications industry, ushering in new services, changing the nature of customer connections and levelling the playing field for MVNOs.

In 2022, 127 eSIM devices were available to consumers, according to GSMA Intelligence, a fivefold increase on December 2018, and this is set to grow. With all major OEMs across all categories of consumer devices on board with adopting eSIM capabilities, GSMA Intelligence has said, it’s clear there are new business opportunities coming down the line and the time for MVNOs to innovate is now.

With an eSIM, customers can enjoy the benefit of having two numbers on one phone, whether it’s for travelling or combining work and personal numbers without needing two separate devices or to switch SIM cards. eSIM could allow MVNOs to offer personalised services, help authenticate digital identity and feature in smart home hubs.

For example, eSIM technology will enable multiple services on the same device and IoT device connectivity across consumer devices including wearables, appliances, health monitors, tablets, laptops and more.

eSIMs are an enabler of digital possibilities in a connected world, and MVNOs have an opportunity to broaden their services offering to customers through eSIMs and embrace the opportunities they offer.

 If you are looking to adopt eSIM to future proof your business, connect with us here at Optus Wholesale.