Ericsson launches eSIM to Capitalize the Growing Market of Connected Devices

By Telecom Tech Outlook | Monday, January 20, 2020

Assessing the available market for devices with eSIMs, the announcement came at a crucial time that will help Ericsson to ride on the eSIM wave.

FREMONT, CA: Looking at the growing market of eSIM devices, Ericsson has launched a fully-automated eSim service that provides the remote provisioning of user profiles for a number of use cases. The services will make it easier for communication service providers to issue eSIMs and manage user profiles, Ericsson said. Ericsson also said that the product would benefit device manufacturers, whose products can be designed with end-users and consumers in focus.

Research from Ovum, named Device Sales Forecast Report: 2019-24, predicted that 5 percent of all smartphones would be eSIM enabled in 2020, and these statistics is expected to increase to 20 percent by 2024. Assessing the available market for devices with eSIMs, the announcement came at a crucial time that will help them to ride on the eSIM wave. It is also expected that the eSIM device will attain a compound annual growth rate (CAGR) of 60 percent because of its efficient and automated support for end-to-end onboarding.

Monica Zethzon, head of solution area communication services at Ericsson, said, "When we developed our eSIM manager, we focused on ease of use for the end-customer. If a service provider has both the secure entitlement server and eSIM manager from Ericsson, we can enable a 100 percent automated provisioning of eSIMs. This offers a highly efficient way to provide flexibility and good customer experience for consumers."

The launch is based on data that reveals consumers are ready to take the next step and pay for eSIM services. The creation of the eSIM is from a consumer perspective, and research carried out in five countries, representing about 200 million Smartphone users. The six eSIM based use-cases that users preferred are: connected devices; try and buy new offerings for three to four days before purchase; connectivity insurance, at places where user has no network coverage and needs to make an important call or send a message, and so any mobile network can be used; travel specials, where users tap a local data tariff for surfing but are billed by home operators; marketing campaigns where business and marketplace models are used by other companies for special launches; and flexible business and marketplace models used by event organizers.

Based on survey data, Ericsson estimated the potential of revenue growth to be 10-15 percent per eSIM smartphone subscriber. Primarily, the largest contributor is expected to be connected devices.

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