4 Reasons Why Mobile Network Operators Should Also Offer eSIM Services Now
The size of the subscriber identification module or SIM card has gone through various changes throughout the years.
The first full-size SIM card, which was introduced in 1991, was the size of a credit card with a width of 53.98 mm and length of 85.60 mm.
Most smartphones and tablets today use the smallest SIM card, called the nano-SIM, which measures 12.3 mm by 8.8 mm.
However, digital or eSIM cards are even smaller (2.5 mm by 2.3 mm) and poised to take over the world in the near future.
What is an eSIM?
Embedded SIMs or eSIMs are tiny chips inside smartphones and other mobile devices that act like SIM cards.
ESIMs have the circuitry of physical SIM cards and are soldered directly to a device's board. They can be activated or programmed remotely through software.
However, unlike physical SIM cards, users don’t have to insert an eSIM into their device. The mobile network operator or MNO has to activate it once the subscriber contacts them.
What Can MNOs Gain by Offering eSIM Services?
The benefits mobile operators can gain from eSIMs include:
1. Cost Reduction
MNOs can see a significant reduction in their expenses when they offer eSIM services. This is because they can eliminate the usual distribution and inventory practices that come with traditional SIM cards.
These include purchasing, stocking, shipping, and programming SIM cards, which often takes plenty of manpower, time, and money.
Additionally, MNOs can see a reduction in post-purchase customer support and services, further lowering the costs involved in labour, equipment, and other overheads.
The introduction of Multi eSIM Hubs or MeSH allows MNOs to reduce their overall operating expenses further.
MeSH is a multi-tenant eSIM management platform that allows MNOs to manage eSIMs across different mixes of vendors, subscribers, locations, and other factors.
Mobile operators can add and manage multiple tenants, sites, and sales channels on just a single platform. They can do this without spending time and money on the process of setting up additional systems.
A MeSH also enables MNOs to include eSIM in their multi-vendor purchasing strategy. Because of this, mobile operators can get more from the enhanced competitiveness, business continuity, and geo-redundancy since they can use more than one vendor’s system.
Lastly, MeSH lets MNOs manage all eSIM subscriptions and track billing, reports, and other processes on one platform that provides up-to-date consolidated data.
2. Increase in Subscribers
MNOs that offer eSIM services can see an increase in subscriptions since many people would like to do away with using different SIM cards for different devices.
A lot of people need to get a SIM card each for their smartphone, tablet, and other devices to keep their work and personal life separate or when they travel. Maintaining the different SIM cards can be inconvenient and costly in the long run.
An eSIM allows users to maintain several operator accounts on just one device and even use them remotely. Subscribers can then get the best connection service and have access to a range of coverage and pricing based on their location.
This benefit is highly attractive to subscribers who travel abroad often and don’t want to keep buying SIM cards wherever they are so that they can use their mobile devices.
The flexibility of eSIMs can help MNOs attract and retain more subscribers, which translates to an increase in revenue and profits.
3. The Capability to Offer the Try and Buy Option
The Try and Buy option has been a popular trend in various sectors, including apps, software, streaming services, and online shopping.
This option is expected to increase in popularity due to consumers becoming more conscientious and demanding.
MNOs have been hesitant in adapting the Try and Buy option since the strategy, which lets customers evaluate a plan for a period before signing up for a paid service, comes with a few challenges.
However, eSIMs can make it easier and more feasible for mobile operators to provide this option since they can activate the chips remotely during the trial period and deactivate it when the subscribers opt out.
The trial period allows consumers to experience first-hand the benefits and understand the mobile plans better.
It is an effective sales and marketing strategy that MNOs can look into when they start offering eSIM services.
4. Improved Security
eSIMs are manufactured based on specifications provided by the Groupe Speciale Mobile Association or GSMA. Because of this, the chips ensure subscriber and network security and protection of the same level removable SIM cards provide.
GSMA also works with mobile operators and other involved groups to guarantee the secure encryption and transportation of the eSIMs and data saved in the eSIM cloud.
Additionally, MNOs can program eSIMs to allow them to request verification when someone tries to change the user profile. This feature gives subscribers another layer of security that they will appreciate.
Since eSIMs can’t be removed, thieves who steal a mobile device with this chip won’t be able to simply pop the SIM card out, insert a new one, and use another network.
This piece of technology itself can help discourage thievery and unscrupulous individuals who want to access devices that are not theirs.
ESIMs offer such a variety of benefits that they are poised to be in much higher demand in the future.
MNOs would do well to ride this wave now to get the most from this technology.