Unlocking the potential of eSIM for consumers

Unlocking the potential of eSIM for consumers

 

By: Said Zantout, Head of Solution Area OSS, Core and Cloud at Ericsson Middle East and Africa

 

eSIM has become a hot topic among device manufacturers

and its increasing role in the industry is clear –  as device

manufacturers benefit from lower costs and more space on

the processing board . Moreover, eSIM helps service

providers to generate new revenue streams, and a future of

billions of IoT connected devices

During 2019, two major smartphone manufacturers

announced several of their models were now equipped with

eSIM functionality. In 2020, many more are following suit.

By 2025, GSMA estimates that more than 2 billion eSIM

devices will be shipped. This is a strong incentive for the

industry to go for eSIM.

But what about consumers like me and you? What can

eSIM bring to us?

To answer these questions, Ericsson ConsumerLab has run

a market research study, revealing key insights which

means customers are ready to take the next step and pay

for eSIM services:

1. Cellular connectivity for additional devices is the top application of eSIM that consumers are interested in. 6 in 10 want to connect their laptops to cellular connectivity, yet very few do it today.

2. Every SIM card is problematic, main issue being related to the ever decreasing size of SIM cards.

For consumers, eSIM represents peace of mind, for example 45% mention having access to multiple operators in the same smartphone for emergencies.

3. 6 in 10 smartphones users are interested in eSIM. However, 40% of them have locked smartphones, while73% have post-paid plans with a contract.

4. 29% of smartphone users would consider buying a smartwatch with cellular connectivity if the process of enrollment with the operator was seamless.

According to the report, there are four main eSIM benefits

for consumers. Firstly, it excels in connectivity. Consumers

say that the need to switch between operators depends on

the connectivity performance at various times and places.

If the connectivity is great, one operator is enough. So

when is switching between operators relevant to

consumers? The results took us by surprise – 75% would

activate a reasonably priced plan on top of their existing

one to ensure access to connectivity.

eSIM is not about swapping back and forth between

operators for the sake of just saving a couple of dollars a

month. eSIM is about peace of mind! Even smartphone

users whose expectations regarding network quality are

met want to be able to shuffle between operators. Peace of

mind is more important than loyalty when it comes to

places out of reach and emergency situations.

The second benefit is Travel specials, which refers to

connectivity in the context of travelling abroad. In fact, 1 in

2 yearly travelers connect to mobile data abroad using local

SIM card. Imagine that wherever you travelled, you could

latch on to any operator and activate a mobile subscription

directly in your phone. Travelers that use local SIM cards

abroad are particularly interested in a service that would

ease the process of choosing the optimal connectivity offering.

The third benefit is connected devices. Smartphones are

versatile, boast larger and better screens, and become

smarter by the day. With such a device in your pocket, do

consumers really need mobile connectivity for other

devices? They most certainly do, and surprisingly laptops

top the ranks. The main reason why consumers don’t

activate LTE on their smartphones are the price and lack of

awareness regarding the LTE capability.

A more dangerous obstacle is the enrollment process with

the operator – 57 percent of consumers with cellular-

connected smartwatches mention about how cumbersome

obtaining a smartwatch subscription had been! Lifting this

barrier alone could ramp up the adoption rate

tremendously. For instance, 29 percent of consumers would

buy a cellular-enabled smartwatch if only the enrollment

process was just one click away.

And finally, Try and Buy is probably the biggest benefit of

eSIM for consumers. We see it in the interest level. For

example, 86 percent of respondents want to test at least

one feature, which speaks to how genuinely curious we are.

But the real value of Try and Buy offerings relates to 5G. As

5G coverage extends, more and more streaming, gaming,

AR/VR shopping and AR/VR learning services will emerge

according to latest 5G business potential report. However,

only early adopters and digital natives will give them a try.

Those following behind need to be convinced that what

they are buying is worth it, which is why Try and Buy

offerings are so compelling. If 54 percent of respondents

are interested in 5G speeds alone, the interest for

immersive video formats and AR applications can only be higher.

The opportunities with eSIM are many. Although eSIM

adoption is a concern in the industry, in practice, its

implementation can help enrich the relationship with

consumers. From peace of mind to redeeming shopping for

mobile data, eSIM is valuable to consumers.