Apple’s announcement on Tuesday that the new iPhone 17 Air will be released globally without physical SIM cards signals a major step forward for the virtual eSIM technology the company has used in the U.S. for years.
What Exactly Is An eSIM?
A physical SIM card stores all the data a phone requires to access a mobile network using a specific subscriber’s number and plan.
For decades, users have inserted these fingernail-sized plastic chips into their phones when activating a new device, changing carriers, or traveling abroad.
According to the GSMA, the global standards organization, eSIMs store the same digital information as physical SIM cards and offer a “secure means for authenticating devices onto networks.”
Most modern smartphones support eSIM functionality, though many still include a physical SIM slot.
Users can activate a new device or move an eSIM to another phone using various methods, such as scanning a QR code from their carrier, receiving a text or notification from their network, or selecting the eSIM transfer option in their old phone’s settings.
In What Ways Does Using An eSIM Differ?
Fully digital eSIMs can be downloaded remotely, making it easier to sign up with a new carrier or switch providers, such as connecting to a more affordable local network while traveling.
They also reduce plastic waste and lower distribution expenses.
However, initial eSIM setup requires internet access, so users may need to connect their new phone to Wi-Fi at home to activate the service.
Travelers should activate their local eSIM ahead of time to ensure service is available as soon as they arrive at their destination.
Similar to physical SIM cards, users can activate or deactivate eSIMs directly on their devices, so they are essentially no more or less traceable by carriers or governments.
What is Apple’s Motivation for Promoting eSIMs?
Apple stopped using physical SIM cards in the US beginning with the iPhone 14 released in 2022.
According to the company’s website, eSIM users can enjoy “increased flexibility, improved convenience, stronger security, and effortless connectivity.”
Having fewer physical components “aligns with Apple’s long-standing goal of creating a slimmer, more user-friendly phone,” CCS Insight analyst Kester Mann told AFP.
From a business perspective, he added, “they might also be seeking greater control over how customers connect to mobile carriers during the phone setup process.”
Consultancy Roland Berger echoed this view, indicating in a report last year that eSIMs enable manufacturers to position themselves between mobile operators and customers, “leading to a loss of control for the operators.”
How Do Other Manufacturers Approach this?
While rivals like Samsung haven’t yet launched an eSIM-only phone, Mann noted that “it’s expected they will eventually follow the same path.”
Google’s latest Pixel 10 models are already available in an eSIM-only version in the US.
Roland Berger forecasted that “eSIM adoption will accelerate in the short to mid-term,” projecting that by 2030, 75% of all smartphone connections will use eSIM, up from 10% in 2023.
CCS predicts that the number of eSIM-enabled devices will increase from 1.3 billion today to 3 billion by 2030.
What Effects Have eSIMs Had Up to this Point?
A survey of mobile network managers by Roland Berger revealed little evidence of increased customer “churn” due to the easier switching between providers.
The consultancy also suggested that future eSIM applications could enable mobile operators to offer more personalized services to their subscribers.
In the tourism sector, CCS Insight forecasts that local eSIM sales will grow from 70 million in 2024 to 280 million by 2030.
New providers like Airalo and Holafly have emerged to offer affordable foreign connectivity to travelers, although major players such as airlines and mobile operators are starting to introduce their own options.
Additionally, eSIMs make machine-to-machine (M2M) communication simpler, enabling remote setup or reconfiguration of connected devices, ranging from smartwatches to cars and smart electricity meters.
Read the original article on: Tech Xplore
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