Why Embedded SIMs Are the Future of Digital Communication

Embedded SIMs or eSIMs offer connectivity—eSIM technology combines a remotely programmable chip "eUICC" with digital profiles to from eSIMs. Such profile can contain user identity and data for authorizing a user to access a wireless network. Here is a deeper dive into eSIMs and their capabilities.

The Differences Between Traditional SIMs and eSIMs

The eUICC or hardware and digital eSIM profile or software combine to work like a physical SIM card does. The difference between the traditional and digital SIM is that the latter can be re-provisioned to accommodate different digital profiles.

With traditional cards, there can only be one profile per SIM. Using eSIMs allows enterprises to change service providers without letting go of their profile, an efficient solution for businesses.

Although removable SIM cards are the standard today, the use of eSIM technology continues to spread. Telecommunications specialists predict that with standardization from the GSM Association (GSMA) and the European Telecommunications Standards Institute (ETSI), eSIM use will continue to rise because of the many benefits it brings.

Why Should Businesses Use eSIMs?

There are various benefits to using eSIMs. Today, device manufacturers prioritize making devices smaller and improving waterproofing, which means more room for other parts and lower production costs. Meanwhile, service providers will have an incentive to simplify the buying process and activating cross-device connectivity. These goals are compatible with the functionalities that eSIMs provide.

How eSIMs Help Digital Distribution

Enterprises that want to use or sell devices connected to the Internet of Things can reduce costs using embedded SIMs. IoT management and security are also easier with eSIMs.

Besides network operators and enterprise owners, end-users and consumers will also benefit through better devices, greater flexibility in the choice of service provider, and new services. There are currently several ways providers enable eSIM use:

1. Through pre-selected channels: a user purchases a device from a pre-selected distribution channel owned by a provider offering subscriptions. This option is suitable for subsidized devices.
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2. By QR code: Customers can also receive a QR code for a subscription. When they scan the code, the service provider downloads a profile to their device.
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3. Through a carrier app: A customer can also use an app from the service provider to receive the profile directly to their device without a QR code.

Registered profiles prevent fraud and enable the correct identification of users. Depending on the existing registration systems, though, service providers have varying capabilities in digitizing the customer journey.

The Outlook of eSIM Technology

Today, eSIM technology is growing beyond niche devices. To cite an example, in iOS it is in more than 50% of iPhones in the US. Even mass-market ones like wearables or smartwatches use eSIMs today. Connecting multiple devices to a single customer account is becoming more prevalent. For example, eSIM profiles could connect phones, watches, e-bikes, and even luggage, simplifying the customer experience and unlocking opportunities for personalized and highly targeted use.

Conclusion

For businesses today, wireless connectivity is of utmost importance. A company can have clients and stakeholders in different cities, states, or even countries; instant, affordable communication is crucial to its development. With embedded SIMs or eSIMs, enterprises can ensure constant access among customers or workers, even across geographical locations and device types.

CELITECH will help your company takes connectivity to the next level. We are the world’s first digital-only cellular data platform, specializing in wireless API that offers programmable eSIMs, mobile analytics, and more. Get in touch today to learn more.

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