Could this be the end of the SIM card as we know it?

Ericsson launches e-SIM solution that could ultimately replace the need for a physical SIM card
ESim, Ericsson, Telecoms, Tech

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Ericsson has launched its new eSIM solution, which it says will greatly improve user experience and allow consumers to switch between operators more easily.

“When we developed our eSIM manager we focused on ease of use for the end-customer. If a service provider has both the secure entitlement server and eSIM manager from Ericsson we can enable a 100 percent automated provisioning of eSIMs. This offers a highly efficient way to provide flexibility and good customer experience for the consumers,” said Monica Zethzon, head of solution area communication services at Ericsson.

Ericsson claims that its eSIM technology will allow consumers to more easily add multiple connected devices to their existing tariff; try out  new services before they buy; and, switch between mobile operators in emergency situations (such as calls home when they have no signal with their specified  operator).

Operators have traditionally been wary of eSIM technology, as it gives consumers far more power to switch between providers at the touch of a button. However, the transition to eSIM technology could represent a real opportunity for operators.

"Most communication service providers see eSIM-enabled smartphones as more of a threat than an opportunity. But eSIMs may very well be what CSPs need to break the falling ARPU curve, if they implement and market the capability correctly. eSIM can enable new use cases that can actually strengthen the customer experience," said Lynnette Luna, Principal Analyst, GlobalData.

Independent research by Ovum predicts that eSIM adoption will reach 5 per cent of all handsets by the end of 2020, with that figure hitting 20 per cent by 2024. The proliferation of eSIM compatible handsets is expected to grow at a compound annual growth rate of 60 per cent.    

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