التكنولوجيا وأخبارها بوابة مصر لأخبار تكنولوجيا المعلومات والإتصالات
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:
- 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.
- 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.
- 6 in 10 smartphones users are interested in eSIM. However, 40% of them have locked smartphones, while73% have post-paid plans with a contract.
- 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.
