The conventional SIM card has been integral for device connectivity for almost three decades.
The arrival of eSIMs will remove space constraints greatly benefiting IoT devices and wearables.
Although eSIMs can be seen as a threat to telcos - as they enable a more efficient churn process - we believe the benefits of eSIMs outweigh the risks.
The conventional SIM card has been in use since 1991, enabling connectivity to billions of mobile devices around the world. Over the years it has seen a reduction in its size even as its main purpose remains the same – essentially providing an ID to the device for the network to keep track of during connectivity. However, as devices become more powerful and feature packed, internal space has become a major constraint. New device types such as wearables also have a different set of requirements from mobile devices, namely they must be small and lightweight.
An embedded SIM, or eSIM, can be the solution to these constraints. The eSIM is embedded into a device’s electronics during manufacturing, eliminating the need for a removable SIM card. Users can switch providers much like choosing settings on an app through a process called remote SIM provisioning. For device manufacturers, eSIMs would allow them to include more features on the device due to freed up space, and can improve robustness such as dustproofing and waterproofing due to increased self-containment.