Vodacom has joined a growing list of international mobile operators that now offer support for inbuilt SIM cards for smartphones and other similar devices, known as eSIM.
An eSIM (embedded SIM) is a digital SIM card that is built into a device. It allows the user to activate a cellular plan with a mobile carrier without having to use a physical SIM card. This means being able to switch networks or add a second line without having to swap out SIM cards.
The technology has been around for a number of years, but as with many innovations in the smartphone space it has been popularised over the past few years by Apple, maker of the iPhone. Its iPhone 14 range supports both physical and embedded SIMs. Other smartphone makers such as Samsung, Huawei and Oppo have adopted a similar approach.
In the US, Apple only sells models that have eSIMs, indicating the importance the $2.9-trillion company has placed on the tech.
On Wednesday, SA’s largest cellphone company said it would offer eSIM support across its range of prepaid, top-up/hybrid and postpaid contract products.
“This means that users with selected eSIM-enabled smartphones will be able to connect to the Vodacom network and enjoy the benefits, capabilities and flexibility that an eSIM provides.”
eSIMs are becoming more common in smartphones, tablets and other devices as they offer a number of advantages, such as smaller size that enables them to be embedded in devices that are too small to accommodate a physical SIM card, such as smartwatches or other connected devices.
These SIMs can be activated remotely and can be used with multiple carriers, allowing for switching network providers or adding a second line. As part of the offering, the company has an online portal through which customers can activate a new eSIM and number digitally.
“The introduction of eSIM support for smartphones could not have come at a better time as research shows that the number of eSIM-enabled smartphones in the market is growing rapidly,” said Rishaad Tayob, consumer business director at Vodacom SA.
While Vodacom and others advocate for the advantages brought about by eSIMs, the technology makes more sense — at least for now — in developed countries. Emerging market countries have some way to go in terms of implementing the technology.
For example, SA, a country of 60-million people, infamously has more than a 100-million SIM cards in circulation. This means many South Africans carry more than one SIM and enjoy the convenience of easily swapping these out for a device, without the added friction of an online process to change carriers.
Another example is travelling to foreign countries where physical SIMs are more easily available than the option to activate an eSIM. Until now, a Vodacom customer who bought a new iPhone 14 in the US would not have been able to use the phone on Vodacom’s network.
That said, Internet of Things (IoT) or connected devices such as smartwatches or vehicles might currently be a better fit for the technology.
According a study from Juniper Research, experts analysing the IoT market found that the global number of IoT connections using eSIM technology will reach 195-million by 2026, from just 22-million in 2023.
By 2026, the report forecasts that the oil and gas markets will account for 75% of eSIMs in use globally, owing to their reliance on low-power and wide-area business models that necessitate the use of mass deployment processes.
In SA, Vodacom was the first mobile operator to launch eSIM support for wearable devices back in 2019. Since then, the network of eSIM-enabled devices has grown to more than 1-million users, the company says.
The group also has a partnership with Toyota and Altron’s Netstar unit, where new Toyota and Lexus vehicles are fitted with in-car internet using Vodacoms network. Such application are likely to benefit from the growing use of eSIM technology.
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