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Today, we’re excited to make a milestone announcement. Australia’s challenger telcos – big and small - now have turnkey access to eSIM technology via Telcoinabox.
Previously held back by the major network operators, and now available from Telcoinabox, eSIM is a game-changer for the Australian telco industry.
Embedded subscriber identification modules (eSIMs) are a new way for consumers to connect and activate their mobile plans.
Unlike physical SIM cards, eSIM technology is built-into the device. This includes smart phones, tablets, smart watches, laptops – and even electric vehicles.
Fuelled by device upgrades, consumer eSIM adoption is accelerating worldwide. Already, a one third of smartphones in use support SIM. Looking ahead, industry groups predict 76% of the world’s mobile services will be eSIM-capable by 2025. With over 3.5 Billion eSIM-enabled devices in use by 2027.
For Australian MVNOs and service providers, the value of eSIM is that it makes switching to a new provider faster and easier. The traditional barriers to switching now disappear. Activating an eSIM is virtually instant, and the onboarding process is as simple and familiar as scanning a QR code.
In Australia, currently less than one in ten eSIM capable smart phones are utilitising the feature. This is because – until now – availability was limited to just a handful of providers. Now that eSIM is part of our MVNO enablement platform, it will be available to smaller challenger providers too.
We believe eSIM will disrupt the telecom industry and bring more customers to MVNOs. For challenger telcos, the benefits mount up quickly. Including reduced costs, streamlined switching, and the potential to unlock new revenue opportunities and market niches.
MVNOs are well suited to operating as low-cost providers. MVNOs have a significant competitive advantage over incumbent networks when serving the ‘discount seeker’ niche.
By contrast, Australia’s mobile networks operate at high cost and large scale. They have chains of retail shops and distribute through major retailers. This was an advantage in the past, but eSIM changes that.
An all-digital customer experience means that retail shops become less important. With eSIM, customers can sign-up from anywhere, and don’t need to travel to a shop or post office to collect their SIM.
Moving to eSIM also means that MVNOs don’t need to carry additional stock of SIM cards or cover the cost of postage and handling. Moreover, eSIM unit costs are expected to fall over time. For MVNOs that are regularly adding new users, these small savings can add up to a long-term cost advantage.
One of the challenges of a consumer MVNO is delayed SIM activation. That is: customers who sign up, receive their SIM, and then stick it in a bottom drawer.
If not managed proactively, the lag between signup and activation can quickly stretch out to weeks or months. All the while, you have paid for the SIM and shipping – but you are not able to start billing the customer until their service is activated.
Moving to eSIM means being able to generate revenue sooner. You don’t need to wait while a SIM is posted out and installed. With eSIM, the customer can begin their sign-up online and activate via a QR code in their email. The process is fast and secure and can be complete in minutes.
Many eSIM-capable devices support eSIM alongside traditional SIM cards. These ‘dual SIM’ devices mean that it is easier for customers to try (and buy) your services.
Moving to eSIM broadens the market of potential switchers. If a customer has a dual-SIM device, you no longer face the objection that they are already in a plan. This immediate, frictionless experience opens new marketing and sales opportunities.
With near-instant sign-up via QR code, almost any consumer activity could be a sales opportunity. Imagine winning customers while they’re waiting at a bus stop, or checking in at the airport, or even attending a sporting event or music festival.
The sales and marketing potential is limited only by your imagination. For example – eSIMs could be provided at events as a temporary data service; or provided to customers in regional areas, allowing them to ‘test’ mobile coverage against an incumbent.
Already, service providers are seeing opportunity in eSIM – such as servicing travellers at the airport or powering consumer wearables. This is just the low-hanging fruit. We are interested to see how else MVNOs innovate around this opportunity.
While the consumer eSIM market is built upon everyday devices, the opportunity for MVNOs is larger than just consumers. Moving to eSIM offers meaningful benefits for service providers that focus on the business and enterprise segments.
One of the biggest advantages of eSIM is that services can be remotely provisioned and managed. This is a game-changer for any MSP or IT provider administering a mobile fleet.
In the past, if an employee left the business or changed mobile plans, they would need to swap out SIM cards (with all the associated admin headaches). Now, using eSIM, it is possible to deactivate mobile services and upgrade or downgrade plans without ever needing to touch a device.
Many Telcoinabox MVNOs already provide mobile data pooling to business and enterprise. Now, with eSIM, they can offer efficient service management too.
Moving to eSIM also has environmental benefits. Since there is no need for a physical SIM card, plastic cards and waste from plastic production are minimised. Since the activation process can be all-digital, the carbon footprint of SIM printing, storage, and shipping is eliminated.
Australian consumers and businesses are embracing eSIM technology. Telcos and MVNOs need to keep pace with this shift. By planning a move to eSIM today, service providers can build scale and expertise – just as billions of new eSIM-capable devices enter the market.
Telcoinabox is a proven platform for MVNO and eSIM innovation. Our turnkey solution takes away the high costs and technical roadblocks of operating a mobile business
