eSIM card is not so much technology, as it is a business model

Recent discussions on eSIM are obviously more and more. Since GSMA released the eSIM card remote configuration specification last year, the eSIM card has sprung up by the big companies such as Apple, Samsung and China Mobile.

eSIM card is not so much technology, as it is a business model

What is eSIM

As we all know, in order to improve cell phone space utilization, reducing the size of the phone, cell phone manufacturers try various ways, such as the abolition of the 3.5mm headphone jack, but one thing has become a cell phone cumbersome, that is, we often use the SIM card .

In recent years, the number of SIM cards we use is getting smaller from the standard SIM to MIni SIM, Micro SIM and Apple's Nano SIM.

However, for mobile phone manufacturers, smaller or not enough, the best is the disappearance of the traditional SIM card, eSIM card concept also came into being, eSIM card is the traditional SIM card embedded directly into the device chip, rather than as a Separate removable parts are added to the unit.

For eSIM technology, a card inside, you can integrate different operator information, so as to achieve the purpose of seamless switching, that is, you do not have to change the card, you can use a different carrier network. At the same time support OTA technology, operator information can be written into the card at any time, the real realization of the global casual use of the purpose of not changing the card.

eSIM card can bring what changes

Undoubtedly, eSIM cards can revolutionize the industry, especially for the emerging IoT market, as network connectivity to tens of billions of IoT devices will be a huge undertaking, and in particular For devices that need to be moved, to ensure that communication is a basic requirement no matter when and where. It is not practical to do an M2M card for every other place. Therefore, eSIM technology, which can be unrestricted by operators, will be the future trend.

Attachment: McKinsey _ Global M2M eSIM revenue growth forecast

eSIM card is not so much technology, as it is a business model

We can analyze the changes that eSIM technology brings to users from the following aspects:

More convenient:

The convenience that eSIM technology brings to consumers is multifaceted, for example

(1) The smart device is more portable and eliminates the need to manually install a SIM card.

(2) consumers can get rid of SIM card restrictions, according to the network signal quality, tariff differences and other environmental factors, at any time to switch between different operators.

(3) Multi-number management will be easier for users with multiple phone numbers.

(4) The SIM card slot is easy to enter the dust, and the bad vibration caused the bad contact. The deployment of the Internet of Things is especially difficult, but eSIM does not have this concern.

(5) It is easier to set up IoT across multiple carriers.

For example, a car may be sold, distributed, distributed, and used in different countries. If it is a module made in country A, assembled in country B and sold to country C, the user then opens it in countries D, E, F countries traveling by car across the country, eSIM lock than a carrier's physical SIM card, it is really easy.

2. cost savings:

In the era of mobile phones, we have contributed a lot of profits to operators. In particular, domestic carriers have a high degree of monopolization. Consumers do not have much bargaining power in choosing communication services. The second biggest advantage that eSIM brings to users is that Is the cost savings, specifically reflected in:

(1) Traditional SIM cards limit the space and design of the device, and increase the process difficulty and manufacturing cost of the device, eSIM can no longer worry about these problems.

(2) As consumers can easily switch between different operators, the traditional pricing method of packages will lapse. There are rumors that there are already companies in the development of mobile APP, according to the speed and tariffs, automatically help mobile phone users to switch operator networks.

(3) When users travel abroad, they can simply activate the local operator service by one click instead of using expensive international roaming.

3 more secure:

In addition to convenience and cost savings, eSIM technology is also important for improving security. For example, the security information included in the eSIM card can be used to help enterprises authenticate private networks. It is easier to manage the device data remotely, recover and delete security protection, and so on.

eSIM card is not so much technology, as it is a business model

The rise of eSIM technology is naturally welcomed by some people. For hardware enterprises such as chips or end products, eSIM technology is beneficial to both the performance improvement of the product and the subsequent experience of network functions and the reduction of costs. However, In terms of operators, it is indeed another landscape.

ESIM has long been hostile to some carriers because the disappearance of this physical SIM card will cut down the threshold of operators that have been struggling for years.

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