For many decades, people used to rely on physical SIM cards for mobile connectivity. And if you’ve purchased a cell phone in the last decade, you’re probably familiar with the little thumbnail-sized card.
Well, in recent years manufacturers have begun replacing it with an eSIM. This eSIM is now making everything much easier and flexible. They allow you to switch between mobile networks carriers and plans, with just a few taps.
But how does it work? Let’s learn more below.
Understanding eSIM architecture
An eSIM is embedded straight into the mainboard of your smartphone. Its architecture has four key elements, including the following:
Embedded Universal Integrated Circuit Card (eUICC) chip
The eUICC is a tiny and permanent chip that’s soldered into devices. Its main work is to act as a secure storage for multiple network profiles. You can download these networks remotely and manage them using the Mobile Network Operator.
Remote SIM Provisioning
This element is what makes an eSIM truly powerful. It enables mobile operators to send encrypted profiles directly to the eUICC via QR Codes. These profiles are updated over-the-air (OTA) and they eliminate the need for physical SIM cards.
For instance, if you buy plans for Holafly’s eSIM in Portugal, the provider will send you a QR code. And when you scan the code, your eSIM will be automatically setup. This allows you to manage mobile plans and subscriptions without requiring physical SIM cards.
Security Framework
eSIMs are digital. This means that security is of top priority. And they ensure it through strong encryptions and secure channels to prevent unauthorized access. That means that only trusted mobile operators with verified systems can send profiles to your eSIM chip.
Interoperability standards
The Global System for Mobile Communication Association (GSMA) governs the eSIM architecture. This feature guarantees smooth cooperation between eSIM-equipped devices and network systems, enabling users to swap mobile providers without facing technical difficulties.
What’s more, the GSMA provides guidelines for remote SIM provisioning and profile management.
eSIMs and 5g integration
5G networks provide very fast speeds, low latency, and massive connectivity for billions of devices worldwide. So, how does the eSIM come in? Well, the eSIM enables devices to connect rapidly to that fast 5G network.
In addition, it allows you to switch from a congested 4G network to a 5G through the eSIM profiles. This helps to ensure minimal latency for video calls, remote surgery, navigation, autonomous vehicles, and many more.
The best part? eSIMs download 5G profiles over the air in seconds. Therefore, eSIMs and 5G technology provide users with a combined solution for enhanced mobile connectivity. 5G networks provide quick speeds and long range coverage.
On the other hand, eSIM ensures seamless switching between networks. This integration ensures you enjoy better control over your mobile connection.
Impact on roaming and international plans
The eSIM technology is knocking down the traditional roaming models. It enables businesses and travelers to enjoy a cost-effective and flexible alternative to the physical SIM cards. How does it do that?
Well, the eSIM eliminates bill shocks. Traditionally, roaming charges could go as far as $10-$16 a day for basic data. That’s not the case with eSIM. Providers, such as Holafly, will offer you region-specific data packages at 80% to 90% lower costs.
What’s more, eSIM provides transparent pricing policies. They list flat-rate plans upfront, and it can be something like $6 for 1GB in Portugal. This flat rate enables users to avoid per-MB billing traps common with carrier roaming.
Another way eSIM is changing the landscape of international plans and roaming is that it allows travelers to instantly activate local-network profiles. That means as long as you use eSIM you can bypass international roaming fees entirely.
eSIM management platforms
Among the primary advantages offered by eSIM technology is the capability for a single device to manage multiple mobile profiles, and this is precisely the role fulfilled by eSIM management platforms. The eSIM management platforms simplify the process of activating, switching, and managing eSIM profiles. They include the following:
Holafly App
Holafly provides an easy-to-use mobile app that lets users browse, purchase, and activate international eSIM plans. What’s more, you can use the app to manage your plan duration, monitor data usage, and switch profiles while traveling.
Smart Connector Consumer by IDEMIA
This platform is hosted by Microsoft Azure. It offers end-to-end solutions to mobile operators to generate, prepare, store, and remotely transfer eSIM profiles from consumer devices. This platform has two main components, that is Subscription Manager-Data Preparation (SM-DP+) and Digital Personalization System (DPS).
The SM-DP+ manages, protects, and delivers eSIM profiles. On the other hand, DPS enables real-time eSIM profile customization, adaptation, and update.
Airalo
Airalo is a digital marketplace for eSIM plans around the world. Its app allows users to download, activate, and manage regional or global data packages on the go. In addition, this app enables data usage tracking.
Regulatory considerations for eSIM deployment
eSIM adoption rate in the world is expected to grow by 40% annually by 2030. But that adoption comes with several regulatory considerations, and they include the following:
Divergent regional rules.
You’ll find that some countries, such as China, restrict eSIM to maintain telecom market control. On the other hand, regions such as Europe and the US encourage eSIMs to boost competition. These regional differences mean that eSIM providers need to adapt their strategies based on local laws. That can slow down consistent and worldwide eSIM adoption.
Some smartphone manufacturers may tie eSIM activation to specific network partners.
This prevents users from switching eSIM providers freely. At the same time, it contradicts the flexibility benefit of eSIMs. To combat this issue, the European Electronic Communications Code (EECC) states that carriers must allow eSIM transfers. Also, the Telecom Regulatory Authority of India mandates interoperable eSIMs to prevent anti-competitive behavior.
There is also a data concern issue.
eSIMs hold crucial data such as carrier credentials and user profiles. And the remote profile management raises cybersecurity risks, such as eSIM hijacking and fraud. Therefore, to solve this issue, the General Data Protection regulation law in Europe has strict rules on how eSIM providers handle personal data. This includes storage and consent for eSIM profile transfers. Also the California Consumer Privacy Act requires eSIM providers to be transparent about how they use and share consumer data.
