Published: 01/08/2024
eSIM: five reasons why it's time to switch
With eSIM technology, it has never been easier, safer, or more environmentally friendly to switch mobile providers or stay connected while abroad – yet many consumers are still unaware of eSIM’s advantages over traditional SIM cards. Spotlight takes a look at some of the biggest reasons why it’s time consumers made the switch.
When consumers upgrade their smartphone, several factors influence their purchasing decision: the brand and ecosystem, camera features, battery life, display size, available storage, and value for money, to name a few. Rarely do they consider a feature that has been standard in every mobile phone for over three decades: the SIM card. Until recently, they haven’t needed to, but in light of the growing eSIM adoption has turned the SIM card into a valuable feature that should be considered when buying a new smartphone or device.
Since it was invented by G+D in 1991, the SIM card has quietly served its purpose of securely connecting tens of billions of mobile devices worldwide. Whenever you bought a new phone, you simply transferred the SIM card from your old handset to the new one and carried on as before. While the SIM card has shrunk in size over the years to keep pace with advances in smartphone technology, it hasn’t made a tangible difference to the user experience. With eSIM, this is no longer the case.
Many users are carrying eSIM-compatible devices but have no idea of how that technology can help them. The eSIM simplifies the user journey by being entirely digital – it is embedded directly into the device’s hardware. It is more secure, more efficient, and more sustainable than traditional pluggable SIM cards.
Despite these benefits, only 36% of consumers in key markets are even aware that the technology exists1. To accelerate mainstream adoption and demonstrate its confidence in the eSIM, Apple released the iPhone 14 – and subsequent models – as “exclusively eSIM only” in its biggest consumer market, the US. This, coupled with the increased ubiquity of eSIM-powered wearables such as the Apple Watch, is a positive step toward mass adoption. Furthermore, GSMA estimates that the number of global eSIM downloads will surpass 1 billion by 20252 – on the one hand a significant milestone, and on the other a signal that more needs to be done to raise awareness of the benefits of eSIM.
With that in mind, Spotlight shines a light on some of the reasons why consumers should consider making the switch:
Enhanced convenience and flexibility
Switching traditional SIM cards can be a hassle. First, you have to purchase a new SIM from a store, or order it online or by phone and then wait several days for it to be delivered. Then you have to physically change the SIM – providing you haven’t lost your little pin or have a paper clip to hand – and, if you’re planning on keeping the old SIM, find somewhere safe to store it.
With eSIM, all of that stress can be avoided. Thanks to eSIM entitlements, eSIMs can be activated in a matter of minutes and managed entirely digitally for the most convenient user experience. Furthermore, you can seamlessly transfer mobile subscriptions to new devices (including from SIM to eSIM), manage multiple eSIMs from the same device to keep business and personal numbers separate, or even add multiple devices, such as wearables and tablets, to a single plan.
And thanks to G+D’s Dual-SIM Dual-Active (DSDA) solution, connected car drivers can stay connected on the go, enjoying strong and stable network coverage for infotainment systems, without draining their phone battery by using Bluetooth.
Design and durability
Before smartphones became a must-have accessory – a reflection of our lifestyle and identity as much as a tool for communication – they were clunky and cumbersome. Accessing the SIM slot often required removing the back casing and the battery pack. Over time, both devices and SIM cards shrank in size. This evolution is no coincidence.
Modern devices, while often larger than the compact designs popular in the early 2000s, are noticeably sleeker and slimmer – a trend that will continue as more devices become eSIM-compatible. The absence of a SIM card slot not only allows for greater design flexibility – enabling innovations such as cellular connected wearables and foldable smartphones – but also eliminates a point of entry for dust and water. This enhances the long-term durability of smartphones by reducing the risk of damage from environmental factors.
Global connectivity
Whether you’re traveling for business or leisure, staying connected abroad is essential. However, when roaming coverage isn’t included in your standard carrier plan, or when visiting a country without a roaming agreement for your standard carrier or home country, this can be a challenge. Sourcing a local SIM card upon arrival in a new country can also add unnecessary stress, especially when faced with language barriers.
eSIMs offer a convenient alternative, enabling consumers to seamlessly connect to the most affordable and readily available local network the moment they step off the plane, making roaming challenges a thing of the past.
Increased security and control
Modern smartphones are essentially portable computers, and our lives are becoming increasingly dependent on them for vital services like banking, communication, and even managing our health and wellbeing. With this increased reliance, the need for enhanced security has never been greater. The eSIM maintains all the features of the pluggable SIM, with the added benefit of being physically built into the device.
Firstly, the embedded nature of the eSIM reduces the risk of physical tampering and unauthorized access because, unlike traditional SIM cards, eSIMs cannot be removed. This feature also acts as a deterrent to physical theft, as a stolen phone with an active eSIM is easily traceable and difficult to disable without authorization, making it much harder for thieves to resell. Additionally, in the event that a phone is lost or stolen, owners have more control over their device, as they can remotely trace and, if necessary, deactivate the eSIM to protect their device and data.
Sustainability
Sustainability is an increasingly important factor for consumers, especially among younger generations. In a 2023 study by McKinsey & Company, 48% of millennials and 49% of Gen Z respondents expressed a willingness to pay a premium for environmentally friendly products3. Switching to eSIMs is a straightforward and cost-effective way to uphold this commitment and make a significant impact.
Compared with a physical SIM, an eSIM has a significantly smaller carbon footprint, emitting 46% less emissions throughout its product life cycle. This reduction is due not only to the fact that eSIMs use no plastic – being embedded directly into the circuit board – but also due to less carbon-intensive production processes, the elimination of packaging and distribution, more efficient power usage, and reduced waste.
0 billion
eSIMs in circulation by 2025
0%
of consumers in key markets are aware of eSIM technology
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less carbon emissions in the life cycle of an eSIM compared with a traditional SIM
At the forefront of eSIM technology
G+D is committed to advancing eSIM technology and driving mainstream adoption in both the IoT and consumer device industries. Having issued 200 million eSIM downloads to date, G+D is convinced of the unparalleled benefits they can provide consumers, from simplifying the activation process and enabling seamless switching between network providers – at home and abroad – to strengthening device security and reducing the risks of unauthorized access. Most importantly, by choosing eSIM, consumers can also support a more sustainable future, ensuring our increasingly digital lives are do not come at the expense of the planet.
Key takeaways
- eSIMs offer numerous advantages to consumers, but many are still unaware of their potential.
- eSIMs provide instant, digital activation and easy switching between network providers without physical SIM cards.
- eSIMs enhance device security by reducing tampering risks and significantly lower environmental impact compared with traditional SIM cards.
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Accelerating eSIM globally: state of the consumer market, user behaviour and adoption growth scenarios, GSMA, 2023
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The Mobile Economy 2024 (gsma.com), pages 31 and 32
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Buying into sustainability, McKinsey & Company, 2023
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