The GSMA’s release of eSIMs for consumer devices comes at a time when mobile operators and device vendors are trying to identify new areas of growth. Encouraging the same, this time the eSIMs came with cheaper data plans for all its consumers in Canada.
The high prices of wireless technology had always seen as a bug in the telecommunication system of Canada. Even the government and the tele-regulators failed to introduce cheaper plans for the Canadian’s. The government’s initiative to introduce new companies was ultimately taken over by the old companies but still the charges which customers pay for the services remained the highest in the world.
According to the citizens of Canada, there are numerous mobile companies offering a generous amount of data but the tremendous cost for the same is something they have to bear the load of.
CBC news has recently conducted a survey on Canada’s data plans and finds out that Canada is still not ready to advocate the unlimited and affordable wireless plan, as there is no network capacity and it would weaken performance for everyone.
However, embedded subscriber identity modules (eSIMs) came up with some prospect for Canadians. Though how is it going to happen is still largely unknown, the initiative is admired by the mass.
Historically, the job of SIM cards was to securely store the subscriber’s identity when the device is connected to the network. The SIM was hard to access and the security was paramount. In October 2013, GSMA introduced a new kind of sim, i.e. embedded sim or eSIMs, which can be soldered in place and then programmed to connect to a chosen carrier remotely. This enabled the user to sign up and sign out from a network with the help of few clicks. eSIMs therefore, easily switch wireless carriers with just a few taps on your phone and requires no customer care call or visiting physical customer support outlets.
According to IHS Markit, the usage of eSIMs is so far limited to machine-to-machine communication. Though if the IHS is to be believed, the scenario is going to change soon and the eSIMs will be available for smartphones too, with all of its functionalities. The second and third-tier smartphone makers, that is, the Chinese brands are incorporating eSIMs in their handsets for next year as a way of differentiating themselves from the market. Moreover, the big smartphone companies like Apple, Samsung, and Huawei are likely to follow the lead two years down the line i.e. from 2019.
As per IHS Markit the coming era is of the eSIMs. The usage of the removable sim will gradually decline over the coming years and the market for eSIMs will increase ninefold by 2021.
If regulators and government want to lower down the wireless data prices, eSIMs are a must-adopt technology for them. Though the prices won’t drop magically, it certainly will decrease the cost to some level; and with the improved calling and data experience for the customer, there surely will be more growth for the market of eSIMs. On a longer run, the government can collaborate with eSIMs and together can offer some lucrative schemes for the consumers.