The number of cellular Internet of Things (IoT) connections is forecast to exceed 4 billion by 2025, up from 2 billion in 2021, with a significant portion in the industrial sector. IoT has become a game changer in different industries as it changes the way businesses operate by optimizing data analysis in almost all areas. This trend has accelerated with the rise of cellular IoT technology, facilitating real-time connectivity between devices.

However, as IoT device availability and mobile connectivity requirements increase, mobile network operators (MNOs) face the challenge of supporting all IoT devices on their networks. Fortunately, emerging technologies like eSIM (eUICC) are revolutionizing the way mobile operators operate. For mobile network operators, the advantages of eSIM technology are many. Let's explore some of the ways operators can benefit from adopting this new technology.

Mobile network operators leverage eSIM

The implementation of eSIM mainly helps mobile network operators to effectively respond to the IoT revolution by enabling cost optimization and new customer acquisition. eSIM technology also enables mobile network operators to provide a better customer experience for their subscribers by enhancing security measures and efficiently monitoring system performance. Using eSIM, mobile network operators can easily upgrade, downgrade or suspend data plans according to customers' needs.

The telecommunications industry is constantly evolving and modern technologies enable mobile network operators to develop new revenue streams. eSIM technology is a new technology that can help mobile operators increase their subscriber base and reduce churn.

As we move into an increasingly digital age, the adoption of eSIM technology is expected to grow further with the rise of cellular-enabled IoT devices. This new technology offers freedom, flexibility, and ease of deployment across industries.

We can say that eSIM will not replace traditional SIM anytime soon because cellular IoT only takes a small part of the market. That said, cellular IoT, powered by eSIM, presents an excellent opportunity for mobile network operators to take advantage. If we look at the total addressable market (TAM) of a mobile phone or a connected tablet, the population cap of the TAM is 6 or 7 billion. If one looks at the long-term growth of IoT when one considers the world of connected IoT devices, TAM will jump from billions to eventually trillions.

As more and more IoT devices come online, it is challenging to meet the different mobile network needs of various industries. However, with eSIM's flexibility and over-the-air (OTA) capabilities, mobile network operators can respond to the growing demand for IoT connectivity and offer a host of new services, thereby gaining a competitive advantage.

The ease of deployment and flexibility eSIM brings to mobile networks is unparalleled. Although eSIM technology is still very new, we can say that eSIM technology offers an ideal solution for the emerging world of IoT. As the technology continues to advance, it will be exciting to see how mobile network operators will use emerging technologies such as eSIM to disrupt the traditional model and change the way they operate.

Cost savings and efficient network management

With the implementation of eSIM technology, mobile network operators save a lot of money. Since eSIM allows remote management over the air (OTA), it reduces the cost and hassle of physically managing thousands of SIM cards manually.

Furthermore, with the help of eSIM, mobile network operators do not need to maintain an inventory of various SIM cards, as all configurations and related data such as service profiles and settings are stored remotely in the cloud. This enables mobile network operators to more efficiently utilize their network resources, reduce expenses and simplify supply chain management.

Improve flexibility and adaptability

eSIM technology is very flexible and offers several advantages to mobile network operators. Since the eSIM's device profiles are fully programmable on demand, customers are free to dynamically switch between network or mobile plans without changing the physical SIM card.

This provides customers with a sense of convenience and mobility to adapt to changing demands in mobile network services, data usage and pricing. With such flexibility, mobile network operators can now easily offer glob