Why operators got scared by eSIM

Cellular operators spoke in unison about eSIM, the next generation of the SIM card form factor, which will be installed on every smartphone in a few years.

They mixed everything up again, operators should not be afraid of eSIM - this is just an evolutionary form factor of the computer and the difference with the current version of SIM, like in ordinary and electric dummies. In fact, everyone was scared of the Remote SIM provisioning standard , which was adopted by the GSM association in early 2016. The value of the standard is in regulating the loading of the operator’s profile on demand., For example, by clicking on the application you immediately leave one operator to another with saving the number. Synergy eSIM begins when we begin to think about whose profile the OEM will be installed in the smartphone.

Google and Apple are already offering the user to choose which SIM card to work with - with their eSIM or second slot. Obviously, in the first scenario, corporations of good will offer to connect to their operators, which are not profitable by default in Russia and are suitable exclusively for travel.

Further, no one forbids operators to negotiate with vendors about the OEM use of their profiles, as is now happening with the installation of applications “by default”. Further, further, it is unlikely that vendors will only flash eSIM with their services - GSMA or antitrust services simply will not allow it.

Another scenario is the emergence of independent service providers that will aggregate the profiles of mobile operators and connect users through their applications. Again, GSMA standards are open and no one can prohibit third parties from creating such providers. There are already such ones in Russia - TapMobile One guys are working on loading operator profiles on demand, as with classic form factors, and for a year now, as with eSIM.

The most likely scenario for Russia to create a single service provider Remote SIM provisioning under the wing of the conditional State Corporation and the emergence of many independent providers, which also can become sellers of traffic for virtual operators. Such a scenario is the most market one and every second one will eventually have its own virtual operator.

Regulators worry about encryption in general is very surprising - the kettle remained a teapot, it boils water, the packaging has changed, and the SIM card is a computer.

We disagree and the most interesting is yet to come!