We’re all familiar with the term SIM card, which connects your phone to a mobile network operator (MNO) so you can access wireless service and have a unique phone number.
eSIM is revolutionizing the telecoms industry, offering a more flexible and convenient way to access mobile services, driven by Apple’s release of eSIM-only iPhone models in the US.
But how does eSIM compare to a physical SIM? Let’s find out.
Here, we will explore the benefits of an eSIM, how it differs from a standard SIM, and which devices and networks support it.
What is a physical SIM card?
Before we dive into the intricacies of eSIMs, let’s take a step back and revisit the familiar physical SIM card.
A physical SIM card, or Subscriber Identity Module, is a small, removable smart card you insert into your mobile device. It’s essentially your key to accessing a mobile network.
This little chip holds crucial information that identifies you as a subscriber to your chosen network operator, allowing you to make calls, send texts, and browse the Internet.
Over the years, physical SIM cards have evolved in size, from the credit card-sized giants of the early days to the mini, micro, and, ultimately, the nano-SIM cards commonly used in today’s smartphones.
To get a physical SIM card, you typically visit a mobile network operator’s store or order one online. Once you have the card, you need to activate it with your chosen network provider, which links your device to their services.
What is eSIM?
An eSIM, or embedded SIM card, is a digital SIM built directly into your device’s hardware. Unlike traditional SIM cards that need to be physically inserted, an eSIM is a tiny chip inside your phone that functions similarly to the NFC chip used in payment systems like Apple Pay and Google Pay.
The information available on an eSIM card is rewritable and backed by the GSMA, which means you can choose to switch operators with just a quick phone call.
Linking devices with eSIMs to a mobile account and adding them to any data plan takes a few minutes.
And the rise of eSIM is undeniable:
- Valued at approximately USD 8.07 billion in 2022, it’s projected to reach USD 17.5 billion by 2030.
- By 2030, a staggering 6.7 billion smartphone connections – that’s 76% of the total – will be through eSIMs.
How are physical SIM cards and eSIMs similar?
While eSIMs represent a significant advancement in SIM technology, it’s easy to forget that both physical SIM cards and eSIMs share the same fundamental purpose: connecting your device to a mobile network.
Despite the differences in their physical form, these two technologies have more in common than you might think:
- Network connectivity: This is the core function of both types of SIM. They enable your device to connect to a cellular network, giving you access to calling, texting, and mobile data.
- Device compatibility: Both physical SIMs and eSIMs are implemented in a wide range of devices, from smartphones and tablets to smartwatches and IoT devices.
- Subscriber identification: Both store crucial information that identifies your phone and your connection details, including your chosen network and tariff plan.
- Dual SIM functionality: Devices that support dual SIM functionality allow you to use both physical SIM and eSIM technology simultaneously. This allows for greater flexibility in managing different numbers from multiple carriers without switching phones.
- SIM at the core: Both technologies rely on a SIM module to function. One is a physical card, while the other is an embedded, almost virtual version.
What’s the difference between an eSIM and a standard SIM?
While we’ve already touched on some key differences, let’s explore what sets eSIMs apart from standard SIMs.
Size
- Standard SIM: A physical card that needs to be inserted into a physical SIM slot. It has evolved in size over the years (mini, micro, nano) but still requires a physical presence.
- eSIM: A digital SIM embedded within the device’s hardware, eliminating the need for a physical card or SIM tray. It’s significantly smaller than even the nano-SIM.
Network flexibility
- Standard SIM: Most SIM cards are locked to a single network, making it impossible for you to change them on your own without assistance from the carrier.
- eSIM: Offers the flexibility to switch carriers remotely without intervention from the carrier.
Activation and management
- Standard SIM: Typically requires carrier intervention for activation and deactivation.
- eSIM: Users can activate, deactivate, and manage profiles directly from their devices.
Advantages of eSIM
Beyond the core differences, eSIMs unlock a host of benefits:
Convenience
You can download and install eSIM profiles anytime, anywhere, with a network connection, without the need to visit a store or wait for a physical SIM card.
Cost savings
eSIMs are cheaper to produce than traditional SIM cards due to their smaller size and reduced material requirements.
According to the Consumer eSIM White Paper, the average cost of a plastic card is $2.50, including the card, packaging, and delivery. In contrast, an eSIM costs between $0.20 and $0.50. This means operators can reduce SIM-related expenses by up to 80% by switching to eSIMs. A mobile operator with 1 million subscribers and approximately 50% gross additions annually could save $1 million annually by transitioning to 100% eSIM provisioning.
Security
eSIMs cannot be physically lost or stolen, as they are embedded in the device.
Flexibility
eSIM also allows dual SIM cards in one phone, allowing you to link your personal and work numbers to the same device. You can also purchase a local SIM card when traveling abroad and want to cut back on outrageously high data costs.
This opens up new revenue opportunities for mobile operators as their customers scale up their plans by adding new devices that require data.
Device compatibility
While yet to be universal, eSIM compatibility is increasing across various devices, including smartphones, tablets, laptops, and wearables.
Streamlined management
IT teams can quickly and easily provision and deploy new devices with eSIM by providing a streamlined user experience for managing cellular connectivity.
Enhanced customer experience
Device bundling becomes much easier with eSIM, allowing customers to conveniently add new devices to their plans without visiting a store or waiting for a physical SIM card to be mailed.
eSIM use cases
Welcome to the city message
As soon as a user arrives in a specific location—whether a city center, a popular tourist spot, or even a shopping mall—businesses can trigger a welcome message with relevant information.
This message could include:
- Greetings and a warm welcome to the city
- Information about local events, attractions, and points of interest
- Special offers and discounts from nearby businesses
- An option to temporarily change their mobile plan to one that’s better suited for travelers, with increased data or local calling benefits
Roaming tips
Traveling internationally often involves navigating unfamiliar mobile networks and data roaming charges. eSIM can simplify this process, but users may still need guidance on how to manage their roaming settings effectively.
Instead of relying on lengthy text instructions or FAQs, businesses can send video instructions and provide a more engaging and user-friendly way to guide customers.
Short video tutorials can be sent to users:
- Explaining how to switch to a local eSIM profile when traveling
- Demonstrating how to manage data usage and avoid excessive roaming charges
- Showcasing the benefits of using eSIM for international travel
eSIM transfer alert
When users transfer their eSIM profile to a new device, it often signifies that they’ve upgraded or replaced their old phone. This presents a unique opportunity for businesses to engage with both the original owner and the new device user.
- For the original owner: A message could be sent offering a discount, or incentive, if they’re selling their old device and the buyer activates a new plan with the same operator.
- For the new user: A welcome message could be sent to the new device owner, offering them special deals on mobile plans or other services.
Device and network support for eSIM
eSIM is supported by some of the biggest MNOs around the world. It is often activated on your phone by scanning a QR code provided to you when you buy the plan directly from the operator. Some eSIM-compatible carriers also have apps that allow users to purchase plans and customize pricing.
Although most modern flagships now support eSIMs, not all phones are compatible with them. Some of the devices compatible with eSIM include:
Smartphones
- Apple iPhone models (from iPhone XR and XS onwards)
- Samsung Galaxy S series (from S20 onwards)
- Google Pixel phones (from Pixel 2 onwards)
- Many other Android devices from various manufacturers
Tablets
- Apple iPads (selected models)
- Samsung Galaxy Tab series (selected models)
- Microsoft Surface Pro X
Laptops
- Apple MacBooks with Apple silicon (M1 and M2 chips)
- Microsoft Surface Laptop series (selected models)
- Lenovo ThinkPad series (selected models)
Wearables
- Apple Watch Series 3 and newer
- Samsung Galaxy Watch series (selected models)
- Various smartwatches with cellular connectivity
eSIMs will also be great for tablets and laptops, where frictionless connectivity will be the standard. According to Vodafone, eSIMs will enable more connected devices simply because they don’t take up as much space within a device. As a result, this allows fitness trackers, smart watches, or even glasses to have stand-alone 4G or 5G connectivity in a way they weren’t able to before.
Driving eSIM adoption
The adoption of eSIM will depend on a collaborative effort of consumers, businesses, and technology providers.
- By 2030, all new smartphones will support eSIM, and other linked technologies will probably do the same.
Telco operators are also responsible for ensuring their networks can handle the technology and offer a positive customer experience to businesses and consumers who want to adopt it. Updating your customer support systems and investing in a chatbot building platform that will automate communication and provide enhanced eSIM management capabilities can achieve that. This, in turn, will simplify the adoption of eSIM technology for customers and drive new use cases across the telco industry.
Businesses across various industries can also contribute to eSIM adoption by embracing eSIM in their own operations. This could involve switching company devices to eSIM, offering eSIM-compatible products or services, and promoting the benefits of eSIM to their customers.
Widespread adoption of eSIM not only reduces expenses or improves customer experience but also presents significant growth opportunities for both MNOs and Mobile Virtual Network Operators (MVNOs) by simplifying operations and opening new revenue streams.
- MNOs – eSIM streamlines customer acquisition by enabling instant, remote activations without physical SIM cards, making it easier to attract and onboard new customers.
- MVNOs – eSIM allows them to maintain their position in the roaming market. International travelers can seamlessly switch to local data plans using their existing eSIM profiles, reducing reliance on non-telco eSIM providers. This allows MNOs to enhance the customer experience and future-proof their business.
To fully realize the potential of eSIM, businesses can partner with platforms like Infobip to leverage the expertise and solutions, accelerate eSIM implementation, and maximize its benefits.
Our platform is designed to help businesses navigate and maximize eSIM potential by offering:
- Effortless eSIM management: Enable efficient onboarding of eSIM devices and effortlessly manage connectivity profiles.
- Global eSIM connectivity: Access a vast network of carrier partners to ensure seamless connectivity across different regions and countries.
- Omnichannel communication capabilities: Our platform can deliver personalized messages, targeted campaigns, and engaging content to enhance customer interactions.
- Expert support and guidance: Our expert teams provide dedicated support and advice to help you implement and optimize your eSIM strategy.
