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81% consumers favor eSIM-only smartphones in future, Amdocs

Consumers are ready to wave goodbye to plastic SIM cards and embrace next-generation eSIM technology in smartphones to unlock a wide range of benefits, according to research published today by Amdocs, a leading provider of software and services to communications and media companies.

An eSIM is an embedded, digital SIM that enables users to activate a cellular plan from a mobile network operator (MNO) without the need for a physical SIM card in the device. Original equipment manufacturers such as Apple and Samsung increasingly offer eSIM-enabled devices, while more than 200 MNOs in over 70 countries already provide eSIM provisioning and management*.

The eSIM Consumer Pulse 2022 report, based on research commissioned by Amdocs and conducted by global market research firm Dynata, reveals that 81% of consumers are either actively in favor or open to the idea of an eSIM-only future for smartphones, compared to just 19% who aren’t ready. Meanwhile consumers who want their MNO to integrate eSIM into their offering (58%) outnumber those who don’t (15%) by nearly four to one.

Consumers are most energized by the ability to switch providers and plans in an instant, with one in three (32%) of the 2,500 consumers surveyed across the US, UK and Australia describing this as the biggest benefit of eSIM technology.

One in five (21%) found the reduction in hassle compared to buying a physical SIM card to be the most important benefit, while 13% were excited by the prospect of a fully digital experience, with no need to remove and insert a plastic SIM. The chance to avoid roaming charges when travelling abroad also attracted the interest of respondents, as did the chance to access enhanced device features and the environmental benefits derived from the move away from plastic SIM cards.

“As we continue moving closer to ubiquitous connectivity, this research illustrates the consumer’s enthusiasm for eSIM and the enhancements it brings to the user experience and sustainability,” said Anthony Goonetilleke, Group President of Technology and Head of Strategy at Amdocs. “We’re seeing eSIM adoption accelerate across the telecoms sector and we expect this behavior to continue as consumers and communications service providers become increasingly aware of the benefits and possibilities unleashed by this exciting new technology.”

Commenting on the findings, Dario Talmesio, Research Director at Omdia, said: “eSIM is an opportunity for CSPs to deliver a truly digital and modern customer experience. With the smartphone market approaching the 250 million mark in 2022, according to Omdia estimates, communications service providers need to take advantage of such an opportunity to use eSIM to redesign their customer journeys, introduce flexibility and give instant gratification to consumers. If not, connectivity will remain the only digital service that cannot be purchased, fulfilled, and managed online.”

Amdocs will be showcasing its Amdocs eSIM Cloud solution, which is designed to enable communications service providers to capture the eSIM opportunity, at Digital Transformation World 2022 in Copenhagen, Denmark from 20-22 September. Amdocs eSIM Cloud is serving dozens of communication service providers across the globe, including Vivo, Telefonica Movistar Chile, Cellcom, Pelephone and Orange Belgium.

CT Bureau

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