In today’s fast-paced technological world, travel eSIM has emerged as a competitive alternative to traditional roaming. According to Juniper Research, the global number of travel eSIM users is set to grow from 40 million in 2024 to over 215 million by 2028.
This shift is driven by the rising cost of international roaming. In 2024 , mobile subscribers paid an average of $8.57 per GB when roaming, while travel eSIM users will spent just $5.50 per GB, offering a 35% savings for international travelers.
With its ability to provide seamless connectivity, eliminate the hassle of physical SIM cards, and unlock a world of convenience, travel eSIM is quickly becoming the go-to solution for global travelers.
Roaming’s Decline: The End of a Telecom Gold Mine
As travel eSIM adoption accelerates, operators are projected to lose over $11 billion globally, these losses hit the MNOs who do not have competitive roaming offers and haven’t entered the travel eSIM market by sponsoring their roaming agreements. Beyond replacing roaming, eSIM is set to become the new standard for mobile connectivity, with half of all smartphones expected to support it by 2028 posing a significant challenge for MNOs.
The GSMA began standardizing eSIM technology in 2011 for M2M and later for consumer use in 2015, aiming to ensure security, industry stability, and compatibility with existing telecom systems while keeping operators in control of customer relationships. However, alternative eSIM models, like Apple SIM, could disrupt this balance by allowing users to switch carriers easily, increasing competition and diminishing operator control.
As eSIM adoption grows, Original Equipment Manufacturers (OEMs) may act as MVNOs, offering their own telecom plans and further reshaping the market. This could lead to declining subscriber loyalty, shrinking roaming revenues, and a shift in power from MNOs to device manufacturers. Operator revenue will be impacted by four key factors: lower ARPU due to price transparency and competition, reduced roaming income as users opt for local eSIMs, declining device sales as OEMs take over customer relationships, and potential new revenue from wearables and increased data usage.
A Friend or Foe?
The rise of travel eSIMs may seem like a threat, but it’s actually an opportunity in disguise. MNOs can leverage eSIM technology to offer more competitive, consumer-friendly services and safeguard their revenue in the evolving travel connectivity market. With their established brand reputation, operators have a key advantage, as customers are more likely to trust and purchase eSIM packages from a well-known, reputable provider. By embracing eSIM, MNOs can not only retain their market position but also unlock new growth potential.
eSIM: A Friend in the Making
Operators can turn disruption into opportunity, but in a highly competitive market, that’s easier said than done. However, there are clear ways to benefit from the growing Travel eSIM sector. By partnering with wholesale eSIM partners like Monty Mobile, operators can negotiate competitive roaming rates and secure volume commitments. Many are also launching their own Travel eSIM services through apps or websites, either under their existing brand, a sub-brand, or via turnkey solutions that integrate their roaming footprint with wholesale-negotiated rates. Given the complexity of managing diverse eSIM packages, operators can also opt for ready-made solutions from roaming providers, allowing them to enter the market quickly and efficiently.
Additionally, there is a direct correlation between 5G and eSIM. Customers have a strong incentive to switch to eSIM if it allows them to benefit from the higher speeds and lower latency of a 5G standalone network. For MNOs looking to establish a strong eSIM offering, continuing to roll out 5G can be a key driver of adoption and long-term growth.
Monty Mobile Empowering Connectivity
Monty Mobile empowers operators, enterprises, and businesses to stay ahead in the evolving connectivity landscape. Whether you’re an MNO looking to monetize Travel eSIM, a business aiming to offer seamless global connectivity, or a traveler seeking affordable global connectivity, we provide the technology and expertise to make it happen. Partner with Monty Mobile to unlock new revenue streams, enhance customer experience, and future-proof your business. Let’s shape the future of connectivity together!