The fully automated eSIM offering from Ericsson will drive communication service providers’ topline and an improved consumer experience.
The eSIM solution is being introduced to remove physical SIM cards for improved user experience. It is also beneficial for device manufacturers, where devices can be designed with end-users and consumers in focus.
The eSIM solution offers remote provisioning of user profiles and device management, key functions that enable communication service providers (CSPs) to manage user profiles in a more flexible way. Good user experience of the services requires management of both devices and network elements.
A consumer survey, carried out in five countries and representing approximately 200 million smartphone users, supports the creation of six eSIM-based use cases: Connected devices, Try and buy, Travel specials, Connectivity insurance, Marketing campaigns and Events.
Based on the survey data, the estimated potential is around 10-15 percent revenue growth per eSIM smartphone subscriber. Initially, the largest contributor is expected to be connected devices.
Lynnette Luna, Principal Analyst, GlobalData said, “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.”
Monica Zethzon, Head of Solution Area Communication Services at Ericsson said, “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.”
Ovum’s eSIM ‘Device Sales Forecast Report: 2019–24’, published in January 2020 predicts that in 2020, 5 percent of all smartphones will be eSIM and this is set to increase to 20 percent in 2024. Further, eSIM devices are predicted to grow annually by 60 percent CAGR, thanks to the efficient and automated support for end-to-end onboarding of these devices.