Gregory Gundelfinger is the founder and CEO of Telna, helping service providers redefine global connectivity through advances in eSIM tech.
For years, mobile network operators (MNOs) have missed out on potential roaming revenue due to silent roamers—vast swathes of customers who avoid using mobile data while abroad. But eSIM technology has opened new doors for the MNOs and third-party providers spanning travel, hospitality and even finance. In this article, I will explore how the convenience and connectivity of eSIM are enticing silent roamers and new customers alike.
At a time when international travel is returning to pre-pandemic levels, you would expect the MNOs to be generating a healthy return from mobile roaming. But they still have problems monetizing the silent roamers who rely on local SIM cards, travel eSIMs and Wi-Fi while they’re traveling. Based on my observations, silent roamers often cite excessive roaming fees, bill shock and a lack of transparency for reasons against using their provider’s services. They’re drawn to third-party travel eSIM providers that offer cost savings, instant activation and a range of appealing destinations.
With our research partner, Kaleido Intelligence, anticipating a 5% annual increase in outbound travel over the next five years, it’s no wonder that MNOs are embracing eSIM to bring cost-conscious subscribers back into the fold and attract a new generation of digital-first customers. A recent Kaleido report that we commissioned shows that 60% of MNOs view eSIMs as an opportunity for strategic growth, rather than a threat to traditional roaming.
eSIM-Enabled Growth
Let’s take a step back. Mobile users will be familiar with a SIM card, the small plastic card with a computer chip that slots into your phone. SIM cards are essential to enabling mobile connections for smartphones or IoT devices. But the traditional physical SIM card has become cumbersome in today’s hyper-connected world. Enter the eSIM (embedded SIM), which is embedded into a device’s motherboard and can be managed and updated remotely without the need to remove or replace it.
The proliferation of eSIM-enabled devices, connectivity and apps has created a platform for widespread eSIM adoption. Activation via QR codes, apps or device settings allows users to switch providers more easily, which may increase adoption. Once users experience a digital setup that simplifies activation, they rarely look back.
Kaleido has been monitoring eSIM traction in the smartphone market and estimates that activation rates among compatible devices will reach 75% by 2030. What’s more, by the end of this year, smartphones throughout China and Hong Kong will be standardized with eSIM functionality. This, coupled with the wider adoption of eSIMs in sub-$500 Android models, will expand the user base significantly and accelerate adoption globally.
Establishing A New eSIM Ecosystem
Although this is opening up new revenue opportunities, it is also intensifying competition in both retail and wholesale roaming. We’ve reached an inflection point where MNOs are monetizing eSIM by launching new roaming products, while also entering wholesale partnerships, or partnering with non-telecom brands to offer the connectivity that will support third-party eSIM offerings. This is enabling them to tap into wider eSIM distribution ecosystems that will unlock new growth opportunities.
This new model was showcased recently by Bridge Alliance (a partner of Telna)—a prominent mobile alliance made up of MNOs spanning the APAC and EMEA regions—that opened its partner ecosystem to deliver an eSIM roaming experience designed for efficiency.
Mobile providers like Bridge Alliance are adopting digital, cloud-based eSIM management platforms that provide instant eSIM provisioning efficiently and cost-effectively. These platforms eliminate the need for CAPEX investments in infrastructure, allowing MNOs to integrate their systems directly with the APIs of another operator or a third-party provider. Access to real-time data enables MNOs to provision requests, track usage, monitor service status, scale and manage network resources effectively.
MNOs are positioning themselves as central players in global eSIM roaming traffic, responding to consumer expectations for flexibility. This aligns with changing consumer behavior and expectations that mobile connectivity should be seamless. Mobile users no longer distinguish between domestic and international connectivity; they want the flexibility to switch providers and plans to suit their needs.
The Future: Smart Pricing And Provisioning
That’s why MNOs are partnering with travel brands, airlines and smartphone manufacturers to expand their reach and become integral to the rapidly growing ecosystem. These partnerships are helping to convert more customers to travel eSIMs by landing eSIM plans and bundle offers just as they’re about to book plane tickets or a hotel room.
On the flipside, brands are also seeing the value-add that travel eSIMs can provide and are actively developing their own branded offerings that can be delivered via mobile apps. Fintech brands are experimenting with eSIM travel plans, and one brand in particular recently launched a standalone mobile phone plan, complete with voice and data for domestic and roaming purposes.
Regardless of whether these brands are partnering with MNOs or piggybacking on Wi-Fi networks to deliver connectivity, the proliferation of eSIM services has been enabled by the same platforms that are helping MNOs to provide instant eSIM provisioning.
The same technologies are also enabling MNOs and third parties to set up digital storefronts and offer eSIMs with competitive, customizable data plans. This is key as our joint research with Kaleido shows that silent roamers and occasional roamers—who tend to avoid expensive roaming corridors—are attracted to eSIMs because of the competitive pricing they offer.
Greater investment in digital platforms that ensure eSIM provisioning, seamless onboarding and instant activation has changed the complexion of mobile roaming. It has allowed MNOs to launch new services and partner with global brands, as well as new players to enter the travel eSIM space, creating an ecosystem focused on service quality, coverage and smart pricing. As a result, all parties are now poised to take advantage of the growing demand for flexible eSIM services.
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