Exploring the Adoption of eSIM in the Telecom Industry

eSIM adoption in telecom industry

Adoption of eSIM technology is not happening as quickly as experts thought. Numerous mobile operators are not prepared for the major changes that advanced technology will bring. In this regard, they risk loss of income, as well as customer churn. Users are not willing to wait, so they want high-quality products here and now, which is why they use the products of technology companies. Find out why the telecom industry is slowly adopting eSIM technology.

People around the world are waiting for the emergence of new technologies that will open up new opportunities for them. However, not all technologies receive a warm welcome. 

One of the latest technologies that proved to be a mixed success was the introduction of electronic SIM cards. Experts predicted rapid growth, but the implementation of the technology turned out not so fast. Last year, only twenty percent of mobile operators supported the introduction of the new technology. However, experts predict that in two years more than 95% of mobile providers will implement eSIM cards worldwide. 

It affects many different factors related to the activities of the telecom industry. However, a virtual SIM card offers users many conveniences. Here are some of them: 

  • Lower travel and business travel expenses; 
  • Usage of mobile communications and the Internet in different countries of the world; 
  • Service connection without leaving home. 

Frequent travelers have long resorted to eSIM service. Many people are well aware that they can use yesim.app while traveling. Moreover, business travelers can enjoy having one device and using several phone numbers, which is great for separating personal life and business. 

However, many telecom industry providers are not so willing to offer such services to their users. There are several reasons for this: 

Fear of Change 

Modern technology companies are rapidly adopting new technologies when they realize that smart solutions will help take their business to the next level. Mobile operators are in no hurry to raise awareness of customers about the use of electronic SIM cards, as they see this as a threat to their business. 

Over the years mobile operators have adjusted all their processes to perfection. They are used to the standard business model, which functions like a single well-oiled machine. Therefore, the eSIM service is like fear of the unknown. The adaptation of any technology will require significant costs, which also becomes the reason for the slow introduction of the digital SIM card. 

While some mobile operators have been slow to raise awareness among their customers or develop new products and services, circumstances will soon force them to do so. 5G is being introduced all over the world, and the number of devices that support exclusively digital SIM cards will increase every year. 

Increasing Competition and Customer Churn 

Operators of the telecom industry must keep up with the times and anticipate what customers want from them. Many mobile providers focused on lowering their fees when they saw how competitors began to conquer the market. It’s not even about other mobile operators that offer better service packages, but about technology companies that offer advanced solutions. 

Now the number of users who send SMS messages has fallen. Everybody uses instant messengers like Telegram, WhatsApp, or Viber, where users can send messages for free. In addition, technology companies offer to send voice messages, as well as make video calls. 

The industry has faced huge costs as well as customer churn. Therefore, if mobile operators do not start to innovate, one of which will be the use of electronic SIM cards, we will see how the largest companies begin to go bankrupt. 

The Impact of the Global Pandemic 

The global pandemic has made adjustments for all industries. If earlier mobile operators could make good money on international roaming, then at that time roaming revenues decreased significantly. In addition, local providers in destinations have begun to lose customers as travelers stop coming and buying traditional SIM cards. 

This period influenced the decrease in the rate of adaptation of eSIM cards. People around the world used platforms such as Zoom or Google Meet that allowed them to see relatives or meet with clients. However, the global pandemic is over, so there are no barriers to the introduction of virtual SIM card technology. 

Final Thoughts

Now there are all conditions for the introduction of the new technology by mobile operators. If due to the global pandemic, the transition to eSIM technology was difficult due to restrictions, now mobile operators are at risk of loss of income, as well as customer churn. As a result, the telecom industry could fall into hard times, if not oblivion, unless it starts doing its best to quickly implement new technology. 

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