[kictanet] eSIM for consumers—a game changer in mobile telecommunications?

[Ali Hussein]

Listers

Very interesting article on telecoms.

In 2011, Apple was granted a US patent to create a mobile-virtual-network-operator (MVNO) platform that would allow wireless networks to place bids for the right to provide their network services to Apple, which would then pass those offers on to iPhone customers. Three years later, in 2014, Apple released its own SIM card—the Apple SIM. Installed in iPad Air 2 and iPad Mini 3 tablets in the United Kingdom and the United States, the Apple SIM allowed customers to select a network operator dynamically, directly from the device. 

This technology gave users more freedom with regard to network selection. It also changed the competitive landscape for operators. Industry players were somewhat resistant to such a high level of change, and the pushback may have been attributable to the fact that operators so heavily relied on the structure of distribution channels and contractual hardware subsidies. In fundamentally changing the way consumers use SIM cards, Apple’s new technology was sure to disrupt the model at the time.

As a technology, e-SIM’s functionality is similar to that of Apple’s MVNO and SIM, since it also presents users with all available operator profiles. Unlike Apple’s technology, however, e-SIM enables dynamic over-the-air provisioning once a network is selected. Today, the industry is reacting much more favorably. One driver of the shift in sentiment is the recent focus on the push by the GSMA to align all ecosystem participants on a standardized reference architecture in order to introduce e-SIMs. What’s more, machine-to-machine (M2M) applications have used this architecture for built-in SIM cards for several years now with great success.

Read on 

http://www.mckinsey.com/insights/telecommunications/E_SIM_for_consumers_a_game_changer_in_mobile_telecommunications?cid=other-eml-alt-mip-mck-oth-1601


Ali Hussein
Principal
Hussein & Associates
+254 0713 601113 / 0770906375

Twitter: @AliHKassim
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