In this blog, I am joined by my colleague Marylène Arnoux-Roetynck, [Marketing Manager] to discuss how eSIMs can have a materially positive impact on the environment, and the tremendous benefits MNOs can enjoy from their adoption – both to their brand and in streamlining their operations.
What is the current state of the eSIM market?
DB: As it stands, the SIM market is largely moving towards using less materials in their production. The rise of eSIMs – where no removable SIM card is present in the device – is the pinnacle of this trend.
Most of us will already be familiar with the miniaturisation of traditional SIMs to reduce the amount of plastic used. In the past few years we’ve already seen SIM manufacturers further reducing the amount of materials in their creation. Orange Belgium, for example, recently announced they would be reducing the size of traditional SIM card bodies by 50% in the near future.
At the same time, we’re already seeing a dramatic growth in the use of eSIMs in consumer devices and IoT. ABI Research estimate there will be 4.4 billion eSIM enabled consumer devices on the market by 2025, with another 1.3 billion eSIM devices supporting B2B IoT applications. Mobile Network Operators (MNOs) are taking advantage of this shift. Vodafone Germany, for example, are now promoting the use of eSIM with their slogan “Bye plastic – hello eSIM”.
MA: Furthermore, the eSIM is one of the key ways to enable the digital transformation of MNOs by allowing remote subscription – which eliminates the need to go in-branch to register your new SIM card. eSIM has become a significant aspect of operators’ strategies, allowing them to adapt their subscription distribution and to support a full digital journey for their end-users.
Indeed, the increased adoption of eSIMs signals a clear move from in-store to online. According to the GSMA’s report entitled “eSIM moving up the agenda: from industry work to customer adoption” in June 2020, of all smartphones sold by operators to consumers, 36% were in store, 33% online and 31% through third parties.
What’s more, the pandemic has further accelerated the shift to online subscriptions across most sectors of the economy, including mobile.
So, how can eSIMs have a positive impact on the environment?
MA: They are beneficial to the environment in several respects. The eSIM removes the need for a separate component with plastic and metal in the device, since eSIMs come embedded in the mobile device. A recent article from Airalo highlighted that the entire CO2 footprint for the creation of one eSIM card is only 21g in total, which is compared with 35g for a traditional standard SIM card.
Not only do eSIMs help reduce CO2 emissions due to the reduction of raw materials, they also limit CO2 emissions in terms of transportation, since there is no need to transport them to subscribers or to MNOs retail stores.
DB: eSIMs by design can enable remote subscriptions – where users can have their subscription activated remotely, without the need to go to a branch (depending on the MNOs processes). This also means less of a transportation toll on the environment as well as greater convenience for the consumer.
MA: In addition to this, the eSIM Management servers also have a big role to play with regards to the environment, provided the right technology is used.
Cloud technology is well suited to this. For instance, with the recent announcement on eSIM Management with public cloud technology, with Google Cloud Platform, we can see that it’s possible to go carbon neutral by using the public cloud. This means eliminating the environmental impact of energy consumption from their servers.
What are the associated advantages to consumers?
DB: eSIMs have the additional advantage of being able to support multiple subscriptions, both personal and professional, in a single device instead of using separate SIMs or having two phones. This has a big benefit for travelers who can use their own smartphone with a local subscription which can be activated on the spot, with no need to purchase local prepaid SIM card in the destination country.
MA: MNOs can also choose for these eSIMs to be activated using a QR code. By printing a QR code on a poster or on a screen, multiple subscribers can activate their subscription from one touchpoint. This is also super convenient for consumers and cuts out the need for a large number of promotional physical materials like flyers.
So why is this shift to eSIMs beneficial for MNOs?
MA: Adopting eSIMs puts MNOs at a great advantage when compared to using traditional methods, since eSIMs can drastically simplify the logistics for putting SIM cards into circulation, for storage and for waste management.
DB: On top of that, MNOs can advertise the benefits of eco-friendly eSIMs as their customers become increasing attuned to the protection of the environment. A recent survey from Cap Gemini entitled ‘The connected telco consumer: How telecom operators can reconnect with customers and emerge stronger from the pandemic’ highlighted that the pandemic has heightened consumers’ focus on sustainability. Nearly 58% of consumers see sustainability and socially responsible behaviour as an important criterion in their selection of operators – up from 52% before the crisis.
In this way, eSIM adoption helps MNOs further position themselves as innovative leaders and a key component in society’s move towards digital transformation.
MA: As an illustration of this we’ve seen Globe, in the Philippines, highlighting their global approach to support a sustainable environment and a shift to an eco-conscious lifestyle. They clearly state that the introduction of eSIM further strengthens their position as the country’s mobile innovation leader, enhancing their consumers’ experience and the way they live their digital lifestyles.
What does the future look like for eSIM adoption ?
MA: In a previous blog we mentioned the best practices for eSIM adoption and we’re already seeing MNOs tapping into this shift. In their report ‘The future of eSIM in smartphones: are we at a turning point?’, the GSMA mentioned that nearly 70% of the 100 operators interviewed already offer an eSIM service or plan to do so during 2020–2021. Advertising the eco-friendly benefits of eSIM to their consumers will further boost consumer adoption.
DB: As an example of this, Singapore has been pursuing a ‘Smart Nation’ initiative since 2014. Its mission statement is to apply technology throughout society to improve the lives and livelihoods of citizens with a digital-first approach. StarHub, a Singapore-based telecoms operator, is a part of this – implementing a remote digital enrollment process (referred to as eKYC) which is built on Thales’ Trusted Digital Identity Services Platform.
DB: In summary, more people are using connected devices than ever before. From smartwatches and tablets to connected PCs with their own independent cellular connectivity – all of these use eSIMs to enable connectivity.
As the Internet of Things continues to scale up, the role of eSIMs are a necessity to enable sustainable and eco-friendly connectivity. MNOs, working alongside OEMs, can become innovative leaders in enabling this truly green connected society.
The post How eSIMs help the environment appeared first on Cybersecurity Insiders.
September 25, 2020 at 09:09PM
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