Gregory Gundelfinger, CEO, Telna
This growth is primarily driven by the availability of more affordable 5G devices, promotional plans, discounts, and large data bundles. Additionally, the share of 5G mobile subscriptions is projected to rise to 43% of all mobile subscriptions in the region by the end of 2029, up from 20% in 2023.
Given the accelerating adoption of mobile services – particularly 5G subscriptions – it is crucial for operators across Southeast Asia to capitalise on these opportunities. In this context, eSIM (embedded SIM) technology is becoming increasingly valuable.
An eSIM is effectively a digital SIM card embedded in a device, allowing users to access a mobile plan without the need for a physical SIM card. Many of the latest smartphones, wearables, and IoT devices are now compatible with eSIM. This compatibility enables MNOs, MVNOs, and businesses in other sectors to take advantage of eSIM’s mobile roaming and connectivity capabilities, which are especially important in a region where mobile usage is experiencing unprecedented growth.
Broader reach
GSMA Intelligence forecasts that by the end of 2025, there will be up to 1 billion eSIM smartphone connections worldwide, with growth expected to reach approximately 6.9 billion by the end of the decade. Various new use cases, including mobile roaming, IoT applications, fintech solutions, and transportation apps, are driving this increase in adoption.
Efficient, cost-effective, and flexible, eSIM technology presents significant opportunities for MNOs in Southeast Asia as they seek to develop new offerings and revenue streams. With eSIM, mobile and IoT devices can achieve seamless connectivity, and plans can be customised to fit customers’ needs and usage patterns, opening up new revenue opportunities from data plans and device management services.
For instance, eSIM technology can help MNOs monetise ‘silent roamers’ – subscribers who typically avoid using mobile services while travelling abroad and prefer to rely on WiFi. Operators have long looked for solutions that would activate these silent roamers and recover lost revenue, yet they have had little success to date. By enabling MNOs to offer affordable and user-friendly roaming packages, eSIM can finally address this challenge while helping customers maintain control over their connectivity, regardless of location.
Ultimately, implementing eSIM provides MNOs with the opportunity to expand their reach and broaden their service offerings. They can offer instant provisioning and sell SIM bundles directly to consumers, eliminating the challenges associated with managing physical inventory. By seamlessly integrating eSIM technology, operators can ensure that their connectivity services are future-proof, unlocking new growth opportunities and remaining competitive in the region’s rapidly evolving mobile landscape.
Third-party platforms
There are solutions available to help MNOs capitalise on these emerging opportunities. For example, operators can use third-party platforms for efficient and cost-effective instant eSIM provisioning. These platforms typically operate on a scalable, cloud-based model, eliminating the need for substantial upfront investments in infrastructure. By integrating their systems with the third-party’s APIs, MNOs can exchange data, access plan information, and manage provisioning requests. The platform will then generate the appropriate eSIM profile and deliver it directly to the customer’s device while coordinating with the MNO’s network to complete the provisioning process.
With a digital, cloud-based eSIM management platform, MNOs can offer eSIMs with competitive and customised data plans in real time. This allows customers to start using the service immediately without the need for additional provisioning. Then, by accessing and analysing real-time data, MNOs can track usage, monitor service status, and manage network resources effectively, ensuring their customers enjoy continuous connectivity.
These platforms benefit not only MNOs but also businesses. Organisations can create digital storefronts from which customers can purchase and download enhanced eSIM services, for example. Financial services firms can guarantee continuous connectivity for mobile banking and payment apps, while eSIM technology in charge points can facilitate app-based and contactless electric vehicle charging. At the same time, fast food companies can support digital transactions and ensure delivery drivers remain connected throughout their journeys.
Building eSIM alliances
The eSIM landscape is evolving. But don’t just take our word for it – MNOs in the region are already looking to capitalise on the growing demand for flexible eSIM services that deliver hassle-free international roaming. For example, Telna recently partnered with Bridge Alliance, a consortium of MNOs that cover India and Asia-Pacific, to deliver new eSIM mobile roaming services for subscribers.
As a result of this new development Bridge Alliance members now have access to the advanced roaming eSIM distribution capabilities already discussed in this article. This will create a model that will allow members to tap into the wider eSIM distribution ecosystem and capitalise on new roaming industry trends. To begin with, members can scale quickly by connecting to other networks within the group to extend their reach and offer subscribers immediate access to new markets. Subscribers will also find they can roam freely with a minimum of fuss, simply by updating their smartphone or device via a mobile app or digital store. It’s a seamless experience that enables customers to purchase eSIM packages that suit their requirements directly from their operator.
A perfect storm
eSIM technology has advanced considerably in recent years, becoming more reliable and accessible for various businesses. Additionally, the GSMA has established global standards that facilitate the integration of eSIM capabilities into enterprises’ devices and services.
The telecoms ecosystem has clearly entered the eSIM era. This, combined with the substantial increase in mobile usage in the region, presents a perfect storm of opportunity for MNOs across Southeast Asia. By embracing and implementing eSIM technology, MNOs can diversify their offerings, develop new business models, and unlock additional revenue streams, positioning themselves to optimise their services for future growth.
