Embedded SIM (eSIM): Why your experience with your Telecommunications provider may be changed forever
Don’t be embarrassed, few people actually know what an embedded SIM is
By Ryan Teoh and Geoffrey Head, Directors with Strategy& Malaysia
Note: This is the second of a two part blog. Click here if you haven’t read our first blog about “eSIM: Why your experience with your Telecommunications provider may be changed forever”.
We highlighted these key points in our previous post:
In this blog, we’ll be reflecting on how changing consumer behaviour (with the introduction of eSIM) will impact the ecosystem of telecommunications service providers.
By removing the need for physical distribution, a major barrier to entry is being lifted for new entrants that choose to innovate in price, product, and service. New entrants are likely to take on asset-light business models, choosing to rent network capacity, rather than to own it (a rise in Mobile Virtual Network Operators - MVNOs).
It’s still early days, but we foresee new entrants trying a few archetypes of business models:
When the dust has settled, we will see a significantly larger number of players in the market, all marketing solution-based services that provide information and convenience on top of connectivity.
Traditional telecommunications companies may be tempted to adopt a “wait-and-see” approach, choosing to offer just enough eSIM plans to support each major phone launch. However, we expect more aggressive MVNOs and innovative Mobile Network Operators (MNOs) to do three things:
Our view is that a fundamental shift has happened in the telecommunications industry – and it has happened so quickly that many have still yet to realise it – but mind you, in the words of family Stark (of Game of Thrones acclaim): “Winter is Coming”. The question is, are you making preparations?
We would like to acknowledge the contributions from Anand Markande (Senior Associate, Strategy& Singapore), Lim Khai Wern (Senior Associate, Strategy& Malaysia), Juliyan Somasundram (Associate, Strategy& Malaysia), and Vitchawat Chan (Associate, Strategy& Thailand) all of whom have helped develop Strategy&’s point of view on “Preparing for an eSIM Future”