Why is eSIM capability essential for all MVNOs to future-proof their business?
Summary
This article will help both B2C and B2B-focused mobile virtual network operators (MVNOs) capitalise on the many opportunities presented by the growing eSIM trend, and advise how to overcome the remaining hurdles to provide best-in-class service.
Why is eSIM important?
Global adoption of eSIM is accelerating, driven by both consumer devices and industries leveraging IoT technology. The release of the eSIM-only iPhone has contributed to over 100% annual growth in eSIM user profile downloads in the past two years.
MVNOs will find significant opportunities for eSIM in both B2C and B2B sectors. However, the rapid growth of this market will lead to increased competition. If MVNOs don’t act swiftly, they risk falling behind faster-moving competitors.
So, what are the specific opportunities presented by the eSIM trend, and how can you leverage them for your own business?
Let’s take a look here:
eSIM Opportunities for MVNOs
1. The flexibility of eSIM means MVNOs and others can provide fluid, usage-based pricing models, which can attract more customers.
2. The scalability and flexibility of eSIM also allow services to be adjusted seamlessly based on monthly downloads and other variables. Tailoring services to user trends and demands is a great way to improve customer retention as well.
3. eSIM offers MVNOs faster time-to-market with their offerings too, which means launching new products quickly based on trends or demands from customers is easy. This is a major strategic advantage.
4. Additionally, eSIM can be network-agnostic, giving MVNOs more leverage and agility with their services.
What type of businesses is this opportunity for?
While MVNOs - being the most agile connectivity providers - can benefit greatly from eSIM, there are other use cases in the MVNO ecosystem.
B2C & B2B MVNOs expanding into travel markets
As data usage and connectivity become increasingly important for people travelling internationally, MVNOs can offer personalised, usage-based plans that are highly cost-effective. This can create a competitive advantage over more traditional mobile network operators (MNOs) and SIM models.
B2B-focused MVNOs, on the other hand, can expand their offerings to support remote workers, connected enterprises, and industries.
Global connectivity providers seeking better cross-border solutions
Whether your company specialises in IoT, aggregates or enables MVNOs, or is a vertical-focused MVNO, demand for eSIM capabilities will continue to grow as customers look for streamlined cross-border connectivity and easier provisioning. eSIM provides better services, but also new revenue streams.
Innovative private networks and CBRS operators
Private LTE/5G networks, combined with eSIM technology, offer simplified device management and enhanced security. This is ideal for enterprise settings. eSIMs enable remote provisioning and updates, while private LTE provides a secure, isolated network tailored to specific business needs. This combination results in greater flexibility, cost efficiency, and improved integration for large-scale IoT deployments.
The opportunity is there, so why isn’t everyone jumping on it?
The pursuit of the eSIM opportunity isn’t widespread yet because there are still a number of hurdles to address.
So, what should you keep in mind, and how can you overcome them?
● Initial investment requirements: Until recently, traditional eSIM setups required significant investment in costly hardware, software, and tight security measures. But that’s no longer the case. New solution providers offering RSP-as-a-service models now come with low up-front costs. There are also "pay-as-you-grow" models, allowing you to pay based on your size and subscriber volume.
● Scalability: As your business grows, so do your tech needs. Seamless upgrades are vital as your subscriber base expands or you enter new markets. Modern technology enables hassle-free scaling, but be mindful of future needs.
● Customer support: Reliable customer support is crucial. Legacy systems often lacked quick, efficient support. Nowadays, solution providers offer dedicated teams to handle queries and tech issues swiftly. Be sure to ask for one.
● Flexibility: You must also be able to adapt to market shifts and evolving customer needs. Look for eSIM solutions that offer flexible packages tailored to your specific requirements.
While this might seem like a lot to consider, new solution providers with low initial investments, scalability, and flexible pricing can enter the market quickly, break even faster, and achieve growth milestones sooner than expected.
eSIM advice for MVNOs
For those who do integrate eSIM into their MVNO service offering, it’s beneficial to consider using remote service provisioning (RSP) to manage SIM profiles digitally. This will help to reduce operational costs and provide a greater experience for users.
MVNOs that are newer on their journey can also leverage RSP technology to reduce barriers to entry, as it allows more efficient development of competitive services. For instance, digital management of eSIM profiles enables the deployment of offerings at a greater scale and pace.
MVNOs must move quickly or risk missing out
Whether you’re a B2C or B2B-focused MVNO, the opportunities presented by eSIM are too great to ignore.
It’s a rapidly growing trend for good reason, and it would be wise to consider a strategy to embrace eSIM while there are still such opportunities available. However, competition is intensifying quickly as more and more businesses recognise this.
For MVNOs, it’s crucial to act fast and embrace eSIM technology to fully capitalise on the trend, and with the new type of solution providers available, this has never been easier.
Learn more
If you’d like to explore the opportunities with eSIM further or learn more about the benefits of using RSP technology, you can read the next resource here.
Partner Spotlight
This article is brought to you by Simlessly. Simlessly is dedicated to accelerating the adoption of eSIM and iSIM technologies, with the goal of becoming the leading infrastructure provider in the industry. They streamline onboarding for MVNOs, IoT enterprises, and OEMs, allowing clients to focus on core business needs while enjoying seamless and SIM-less connectivity. Their Remote SIM Provisioning (RSP) and SaaS models orchestrate an integrated ecosystem for hassle-free operations. visit their website.