How eSIMs are Transforming Mobile Operators: Growth Opportunities & Revenue Models

Mikael Schachne, VP of Mobility & IoT Business at BICS, highlights how the advent of eSIM technology is reshaping the telecom landscape.

Apple’s September launch introduced dual‑virtual SIM support on the iPhone XS, XS Max and XR, enabling users to switch operators and plans instantly via downloadable profiles—eliminating the need for physical SIM cards or PAC code requests.

In response, UK MVNO Truphone rolled out global eSIM data plans that allow subscribers to purchase a single bundle and use it across 80 countries, sidestepping traditional roaming fees. The Truphone app manages the profiles, and the offering has spurred similar initiatives across the industry.

While EU consumers already enjoy the “Roam Like at Home” (RLAH) regime, Truphone’s expansion into the U.S., Australia, Japan and Mexico represents a scalable model for low‑cost roaming worldwide.

eSIM and RLAH: Embracing Change

Operators initially worry that eSIMs could erode roaming revenues as customers gravitate toward local profiles instead of paid roaming packages. Coupled with declining voice and SMS income, this concern feels justified.

Another fear is intensified competition: the near‑instant operator switch could erode brand loyalty and heighten churn, especially with MVNOs offering cost‑effective plans without legacy overheads.

Nevertheless, change is inevitable. By embracing eSIMs, operators can unlock new revenue streams and enrich customer experience. The EU’s RLAH rollout demonstrates that encouraging increased mobile usage can benefit both consumers—avoiding bill shock—and operators—boosting traffic volumes.

New Services, New Markets, New Revenue Streams

eSIMs extend beyond phones. Connected devices—from smartwatches to logistics trackers—will increasingly rely on always‑on, global connectivity. Operators can develop platforms and apps that let subscribers manage multiple devices via a single eSIM profile, fostering loyalty and creating cross‑selling opportunities.

For consumers, the simplified setup lowers the barrier to entry for wearable and IoT devices, potentially driving multi‑device adoption. Operators could offer multi‑device, shared data plans, allowing seamless addition of new devices.

Hardware manufacturers benefit too: devices can be produced in one country and shipped worldwide with pre‑loaded virtual profiles that download local connectivity at launch.

Logistics companies can now track shipments globally with reliable connectivity, switching between local operators as needed. While sourcing and handover of multiple profiles pose challenges, global eSIM profile solutions already exist to streamline this process.

Rather than fearing Apple’s eSIM push, operators should view it as an opportunity to innovate. By capitalizing on eSIM’s flexibility, telcos, manufacturers and ancillary partners can thrive in a globally connected IoT ecosystem.

Author: Mikael Schachne, VP of Mobility & IoT Business, BICS