4 mins read
As the world becomes increasingly connected, mobile network operators face new challenges and opportunities in meeting the needs of modern travelers. Traditional SIM cards are quickly being replaced by eSIM technology, providing users with seamless, instant connectivity wherever they go.
A new era in travel connectivity
An eSIM (embedded SIM) is a digital SIM embedded directly into a device, allowing users to activate a mobile plan without the need for a physical SIM card. Unlike traditional SIM cards, which require manual swapping, eSIMs enable users to easily switch between networks with just a few taps on their device.
A Travel eSIM takes this a step further by offering flexible connectivity options specifically designed for travelers. With a Travel eSIM, users can purchase data plans at very interesting rates, eliminating the need to rely on roaming services or buy local SIM cards in their travel destination. This makes Travel eSIM an attractive option for the modern traveler, who values convenience, flexibility, and affordability.
Seizing the eSIM opportunity in a booming travel market
Global Travel eSIMs are revolutionizing how travelers stay connected. With international travel rebounding and trips set to exceed pre-pandemic levels by 2028, the demand for seamless and affordable connectivity solutions is surging.
According to Kaleido Intelligence (2024), eSIM technology is rapidly evolving, with increasing support and awareness driving its adoption across various sectors. By 2028, half of all smartphones are expected to support eSIM, establishing it as a new standard for mobile connectivity.
This growth is not limited to consumer devices; the Internet of Things (IoT) sector is also seeing substantial uptake of eSIM technology. The market for Travel eSIMs, is projected to expand by 500% between 2023 and 2028. This surge presents a lucrative opportunity for mobile network operators (MNOs) to capitalize on the growing demand for flexible and cost-effective connectivity solutions.
As eSIM technology continues to mature, it is set to disrupt traditional SIM card markets, offering enhanced convenience and flexibility for both consumers and businesses. This evolution underscores the critical role that MNOs will play in shaping the future of global connectivity. With the right Travel eSIM offerings, MNOs can meet travelers’ expectations while boosting their own revenue streams.
As the world emerges from the pandemic, international travel is making a strong comeback, with 2024 marking a pivotal year for the industry. Travelers are eager to explore new destinations, and their connectivity needs have evolved significantly. The rapid adoption of Travel eSIM is reshaping the travel connectivity landscape, and this shift has given rise to growing challenges for MNOs.
The ‘Silent Roamers’ challenge
Traditional roaming plans are often too expensive for travelers, leading many to either turn off their mobile data, rely on free Wi-Fi networks, or buy Travel eSIM instead. This has created a category of users known as “Silent Roamers”, travelers who avoid roaming charges by going offline. They represent a significant untapped market, as 70% of them express a high interest in eSIM alternatives that offer affordable and convenient connectivity (Kaleido Intelligence, 2024). By introducing competitive Travel eSIM solutions, MNOs can capture this otherwise lost revenue and increase customer engagement.
High investment to capture revenue
For MNOs, the rise of Travel eSIM introduces competitive pressure. As more third-party providers enter the market, MNOs are losing out on potential roaming revenues to independent Travel eSIM providers. In addition, deploying an eSIM infrastructure requires significant investment in technology, such as SM-DP+ (Subscription Manager Data Preparation) platforms, payment integration, and multi-language support. If MNOs cannot adapt quickly, they risk being left behind by travelers who prefer the convenience and flexibility of Travel eSIM options offered by alternative providers.
Shaping the future of Travel eSIM with MNOs at the helm
Despite these challenges, MNOs are uniquely positioned to lead the future of eSIM. By offering their own branded Travel eSIM solutions, operators can capture new revenue streams, retain customer loyalty, and provide a more consistent, trusted connectivity experience. Here’s how MNOs can make an impact:
- Embracing the eSIM opportunity: By investing in Travel eSIM technology, MNOs can streamline the user experience, offering instant activation and simplified network switching.
- Offering competitive, flexible plans: Competitive pricing and tailored plans for travelers can attract new customers and reduce churn, particularly among Silent Roamers.
- Prioritizing brand trust and support: Travelers are more likely to choose an eSIM solution from a provider they already trust. Operators can leverage their reputation and infrastructure to provide reliable, high-quality support that sets them apart from third-party providers.
BICS – your global connectivity partner
The future of travel connectivity lies in flexible, reliable solutions that meet the expectations of the modern traveler. For MNOs, embracing Travel eSIM technology is not just an option; it’s a strategic imperative to retain relevance in a competitive landscape.
At BICS, we understand the unique challenges that MNOs face in today’s travel connectivity market. Our customizable white-label Travel eSIM solution is based on our multi-sponsor, award-winning global data SIM, designed to empower MNOs with a turnkey solution with no integration requirements. BICS allows you to launch your own branded eSIM service with 600+ competitive data plans in over 100 countries in as little as 8-12 weeks. With multi-language and multi-currency support, payment integration, and real-time management, BICS’ Travel eSIM makes it easy to offer a seamless, flexible connectivity option that meets the needs of today’s global travelers.
Discover more about Travel eSIM in our second blog, where Ann Heyse, Global Telco Solutions Manager at BICS, explores the opportunities and strategies for MNOs to succeed.
Visit BICS Travel eSIM to learn more and contact us today to get started!