by Ralph Heredia
eSIM technology is changing the game in IoT, making it easier for devices to seamlessly authenticate with and connect to different carrier networks and maintain reliable connections across the globe. Born from the need to move beyond the rigid limits of traditional SIMs and cost-prohibitive truck rolls to swap SIMs in the field, eSIMs bring much-needed flexibility, efficiency, and scalability, especially in complex, multi-region rollouts.
Imagine a multinational retail chain using smart gateways to handle essential communications between various IoT devices, like inventory trackers and security systems. Traditionally, setting up connectivity for these devices in different regions or countries was a logistical headache, requiring different SIM cards for each location and complicating the entire deployment process.
With eSIM technology, devices seamlessly switch between mobile network operators (MNOs) anywhere in the world without needing any physical changes. This not only cuts down on logistical nightmares but also boosts the gateways' ability to adapt to new conditions promptly. Additionally, because most eSIMs are embedded, they are more resistant to physical damage and well-suited for harsh environments.
Counterpoint Research reveals that eSIMs are in a period of “hypergrowth,” fueled by the clear advantages eSIMs offer for scaling and managing devices across international markets. Their study predicts that by 2030, nearly 70% of all cellular devices will support eSIM or iSIM technology.
There's hardly an industry today that eSIM technology won't influence. From agriculture to manufacturing and healthcare to consumer electronics, maintaining seamless, secure connectivity anywhere in the world isn't just an advantage—it's quickly becoming a necessity. As eSIM technology continues to evolve and integrate into more devices, its role in driving innovation and operational efficiency across the global economy will only grow more significant.
In this guide, we explore how eSIMs can drive IoT business growth. We highlight the eSIM’s benefits and challenges for managing global deployments, discuss crucial integration considerations, and uncover ways eSIMs can help you capture new market opportunities.
An eSIM is a digital SIM card that lets you activate and manage mobile network profiles remotely—no physical SIM swaps required. It uses Embedded Universal Integrated Circuit Card (eUICC) technology to store multiple carrier profiles and allows for over-the-air (OTA) updates. This means you can easily switch networks or plans without requiring physical interaction with a device.
Devices equipped with eSIMs can select the most suitable carrier profile based on the network’s performance, coverage, or cost-effectiveness–all done remotely. This capability ensures consistent network coverage and addresses the logistical challenges of managing diverse carrier relationships and regulatory compliance across different regions.
Key features of the eSIM
eSIMs can store and manage multiple carrier profiles simultaneously. This means a single device can host profiles from different MNOs, allowing it to switch between networks based on coverage, performance, or cost. For example, an IoT device deployed in multiple regions can access local carriers in each area without requiring a physical SIM change. This capability reduces downtime, optimizes connectivity, and enables devices to adapt seamlessly to changing conditions or regulations, making global deployments significantly more efficient.
OTA management allows carrier profiles to be added, updated, or removed remotely. This eliminates the need for physical access to devices, which is especially critical for IoT deployments in hard-to-reach or hazardous locations, or when manual intervention requires visiting thousands of devices or more. OTA management of devices also simplifies network migrations by assigning/switching carriers without manual intervention, minimizing disruptions. This feature enhances operational efficiency and reduces the time and cost of managing large-scale device fleets. It also gives you greater control to select or change network providers through software commands rather than hardware swaps.
Keep in mind that OTA management discussed here is distinct from OTA device management. Learn more about OTA device management.
While often used interchangeably, eUICC technology and embedded SIMs (eSIMs) represent distinct aspects of IoT connectivity. Their difference is key to understanding how eUICC technology applies across various SIM form factors, offering greater flexibility for IoT deployments.
Many people equate the eSIM with a non-removable SIM that is permanently soldered into a device. However, the term 'eUICC' refers more to the functionality and capabilities of the SIM technology rather than its physical form. Although 'embedded' suggests it is built into a device, eUICC technology is versatile enough to be incorporated into various SIM card form factors, not limited to physically embedded ones.
Embedded eUICCs (MFF2): In this context, "embedded" refers to SIMs permanently integrated into a device’s circuitry. This is the most literal interpretation of an eSIM, where the SIM is soldered directly onto the device's motherboard and designed to be non-removable. This form factor is commonly found in industrial IoT devices, automotive systems, and other applications that demand long-term durability and resistance to harsh environmental conditions. Note that some SIMs can also come in an embedded form factor (MFF2) and not have the capability to assign/change carriers remotely.
Removable eUICCs: eUICC technology can also be implemented in standard, removable SIM card formats (2FF, 3FF, 4FF). In these cases, the SIM cards can be physically removed and replaced if necessary, but they contain eUICC technology, which allows for the remote provisioning and management of multiple network profiles. Here, the eUICC functionality enables the flexibility and enhanced capabilities of the SIM card, regardless of its physical removability.
Whether or not the SIM is embedded or can be removed, the key feature of an eUICC is its ability to manage multiple carrier profiles remotely. This means that even a removable eUICC-equipped SIM card can receive new carrier profiles over the air, switch between profiles already on the card, or have a profile deleted remotely, all without physical access to the SIM.
eSIMs are designed to be compatible with current and emerging cellular technologies, including 4G LTE, 5G, and future communication standards. This compatibility ensures that devices equipped with eSIMs can seamlessly transition to newer network standards as they become available, providing longevity and adaptability for a wide range of applications. This means your devices won’t become obsolete as networks evolve.
eSIM technology is built with security at its core. Each carrier profile loaded onto an eSIM undergoes a rigorous certification process by the respective MNO to ensure compliance with industry standards. The eUICC’s architecture includes robust encryption protocols to safeguard data during profile provisioning, updates, and switching. This high level of security protects devices from unauthorized access and tampering. Additionally, the physical durability of embedded eSIMs makes those form factors resistant to environmental damage and physical tampering, further ensuring the integrity of both the device and the user’s data.
eSIMs streamline the logistical complexities of managing connectivity for devices deployed across multiple regions. By eliminating the need for physical SIM swaps and allowing remote profile updates, eSIMs reduce the operational costs and delays associated with traditional SIM card management. The ability to provision devices with a single eSIM for worldwide use accelerates time-to-market and enhances scalability, enabling faster and more cost-effective expansion into new markets.
eSIMs are inherently future-proof, designed to adapt to evolving network technologies and regulatory requirements. As carriers deploy new standards, such as 5G or future iterations of cellular connectivity, eSIM-equipped devices can adopt these innovations without requiring hardware changes. This adaptability extends the lifespan of devices, reducing the need for frequent upgrades and providing long-term value for OEMs and end-users.
eSIM technology is transforming how industries manage and deploy connected devices. Each of the following use cases demonstrates the practical benefits of eSIM technology, showcasing how different sectors leverage this innovation to solve industry-specific problems, improve service delivery, and optimize operational efficiency.
In environments where real-time resource monitoring is critical, eSIMs allow remote management, even under challenging conditions like network congestion or rapid urban expansion.
For example, during a severe drought in a large metropolitan area, smart water meters equipped with eSIMs can monitor water usage and enforce conservation measures. Each meter records water consumption data and transmits it via a cellular network, enabling the municipal water authority to identify leaks, track usage trends, and ensure compliance with restrictions in real time.
For RV manufacturers and OEMs, maintaining reliable, high-speed connectivity nationwide has traditionally required separate SKUs for each carrier. Without eSIM, RVs must be equipped with different AT&T, Verizon, or T-Mobile SIMs, adding complexity to production and inventory management.
For dairy farmers using smart livestock monitoring systems, reliable connectivity is essential for tracking herd health, movement, and feeding patterns. Traditional connectivity solutions require guessing which carrier has the best signal in a given location or shipping multiple versions of a device with different SIMs for network compatibility testing.
When deploying IoT devices globally, choosing the right SIM solution is crucial. eSIMs are a powerful option but are just one of many approaches to managing cellular connectivity across networks and regions. To better understand their value, let’s compare IoT eSIMs to other SIM types, highlighting their unique strengths and where they diverge.
While reliable for single-network connectivity, traditional SIM cards can be limiting for the complex needs of many IoT deployments. These SIMs are tied to a single carrier, which means changing networks requires physical access to the device to replace the SIM card, This lack of flexibility poses a significant challenge for IoT devices deployed across multiple countries, where network availability, regulations, or costs may necessitate switching carriers.
Additionally, traditional SIMs do not support remote management, making updating profiles or optimizing network connectivity impossible without manual intervention. For large-scale IoT deployments, managing a large number of devices with physical SIMs can be both time-consuming and costly. By contrast, IoT eSIMs offer carrier-agnostic connectivity, allowing devices to seamlessly switch between networks remotely through OTA provisioning. This flexibility makes eSIMs better suited for IoT applications requiring adaptability and scalability.
Consumer eSIMs were first introduced in mobile phones, prioritizing user convenience and flexibility. The key distinction lies in how these eSIMs are managed. With consumer eSIMs, the end user selects and switches carriers manually, often by scanning a QR code or using an app. In IoT applications, there may not be any human interaction with the device, and connectivity is generally managed remotely and autonomously.
This autonomy is essential for IoT devices deployed in remote or inaccessible locations, such as smart meters, industrial sensors, or fleet tracking systems. While consumer eSIMs are designed for user convenience, IoT eSIMs are purpose-built to manage large-scale, machine-to-machine (M2M) communication, offering greater control, automation, and scalability.
Roaming SIMs allow devices to connect to multiple networks while traveling. However, they have significant drawbacks that limit their practicality for IoT. Many MNOs impose restrictions on permanent roaming, often capping roaming periods at 90 days. This limitation creates avoidable challenges for IoT devices that require long-term or continuous connectivity in specific regions.
Roaming SIMs are also subject to change because they rely on current roaming agreements, and carriers change these regularly. Furthermore, roaming regulations differ across countries, adding a layer of complexity to global deployments. IoT eSIMs solve these issues by downloading local carrier profiles and ensuring compliance with regional regulations, avoiding the risks associated with unauthorized permanent roaming. This ability to operate as a native profile within a local network provides reliability and cost efficiency.
Both IoT eSIMs and multi-IMSI SIMs offer multi-network connectivity through the use of multiple carrier profiles. However, carrier support for multi-IMSI SIMs is limited, particularly in regions like the United States, due to the lack of standardization, which can introduce security vulnerabilities. Traditionally, Multi-IMSI SIMs use proprietary methods for swapping profiles. In contrast, the profile-changing capabilities of eSIMs follow a GSMA-certified standard that has been adopted by the world’s mobile network operators. Additionally, GSMA provides validation of certificates and defines the interoperability standards for eSIMs.
eSIM technology integrates advanced hardware, cloud-based provisioning systems, and secure management protocols to deliver flexible and scalable connectivity. These components work seamlessly together for IoT deployments to automate connectivity management and ensure reliable performance. Let’s break down the process into key components and steps.
IoT eSIMs rely on several essential components that enable their functionality:
When an IoT device is first activated, it relies on a bootstrap profile stored on the eSIM. This profile provides initial connectivity to the provisioning system, enabling the eSIM to download and activate the appropriate carrier profile for the device’s region or operational needs. Think of the bootstrap profile as the eSIM’s starting point. It ensures that the device can establish a connection to receive further instructions.
The provisioning platform communicates with the eSIM through a secure cloud system. The platform instructs the eSIM to download and activate the most suitable carrier profile for the device’s location and requirements. If a network change is required, the system can remotely instruct the eSIM to switch to a better-performing carrier profile for uninterrupted service.
The eSIM can store multiple carrier profiles. Only one profile is active at a time, but inactive profiles remain stored on the eSIM for future use. Profiles can be updated, switched, or deleted remotely via OTA communication.
If network conditions or operational needs change, the provisioning system can remotely instruct the eSIM to switch to a different carrier profile. This capability ensures uninterrupted connectivity and compliance with local regulations.
Explore IoT eSIM specifications from GSMA →
An eSIM’s functionality is significantly enhanced by an IoT connectivity management platform, a cloud-based system that simplifies the control and monitoring of connected devices. Such platforms allow users to remotely provision, update, and manage carrier profiles without needing physical access to devices. They provide real-time visibility into device connectivity and performance through intuitive dashboards, enabling quick identification and resolution of network issues.
At its core, eSIM technology incorporates multi-layered security protocols, beginning with the encryption and certification of carrier profiles during provisioning. These profiles adhere to strict GSMA and industry standards, preventing unauthorized access, tampering, or data breaches.
Two critical components within the eSIM’s security architecture are the ISD-R and the eUICC ECASD. The ISD-R manages the secure provisioning of carrier profiles so only authorized entities can interact with the eSIM. The ECASD enforces compliance with GSMA-defined security requirements, providing an additional layer of oversight and control over profile management. Together, these components safeguard the integrity of the eSIM, enabling secure over-the-air provisioning and profile switching.
This comprehensive security framework ensures that device connectivity and sensitive operational data remain protected, even in the most challenging environments.
Traditional roaming SIMs allow devices to connect to multiple networks across regions, but they are often plagued by limitations, including exorbitant roaming fees, unpredictable costs, and inconsistent coverage.
eSIMs solve these challenges by eliminating reliance on roaming altogether. Instead of connecting via roaming agreements, eSIMs can download and activate native carrier profiles in each region. This ensures devices operate as local network subscribers, reducing latency and improving connection reliability. Native connectivity also avoids the unpredictability of roaming charges and ensures businesses remain compliant with local regulations, which often prohibit or restrict permanent roaming.
Additionally, eSIMs provide operational flexibility, allowing businesses to proactively switch to alternative carriers in markets where connectivity quality needs to be improved. This adaptability ensures devices are always connected to the strongest available network. By combining the benefits of global reach with localized connectivity, eSIMs deliver predictable costs, reliable performance, and streamlined compliance.
One key advantage of eSIM technology is its ability to provide native connectivity in any region by activating carrier profiles tailored to local networks. This capability directly addresses the shortcomings of traditional roaming SIMs, where devices are treated as foreign network visitors, resulting in latency issues, reduced service prioritization, and compliance risks. By enabling devices to connect natively, eSIMs allow IoT deployments to operate with the same level of performance and reliability as local devices.
Native connectivity significantly reduces latency since devices communicate directly with the local network rather than routing traffic through intermediary roaming infrastructure. This is particularly critical for latency-sensitive applications such as remote monitoring, telematics, or real-time industrial automation, where even small delays can impact performance.
eSIMs also simplify regulatory compliance, which varies widely across countries and regions. In markets where permanent roaming is restricted or outright prohibited, native carrier profiles allow businesses to remain fully compliant without modifying their hardware or manually swapping SIMs. This compliance ensures devices avoid service suspensions and maintain operational integrity.
Beyond compliance, eSIM-enabled native connectivity enhances operational resilience. If network conditions deteriorate or if a better-performing carrier becomes available, eSIMs allow remote carrier switching to optimize connectivity dynamically. This flexibility ensures consistent service quality across regions. For enterprises managing devices globally, eSIMs eliminate the need to pre-plan connectivity for specific areas and enable seamless, native operations that adapt in real time to local conditions.
eSIMs are built on GSMA-defined global standards, ensuring compatibility across devices, operators, and provisioning platforms worldwide. This standardization streamlines device design and production, as a single hardware configuration can be certified and deployed across multiple regions.
Standardization also enhances security by enforcing strict protocols for profile provisioning, encryption, and authentication. All eSIM profiles must meet GSMA security requirements, ensuring consistent protection regardless of the carrier or region. This reduces the risk of vulnerabilities that can arise from proprietary or non-compliant solutions, giving businesses confidence in the integrity of their devices and networks. Additionally, adhering to these universal protocols simplifies compliance with regulatory requirements, particularly in markets with stringent connectivity and data protection standards.
eSIM technology allows you to efficiently manage the provisioning, replacement, or carrier switching of thousands—or even millions—of devices. Traditional SIM solutions generally require physical handling of these processes, especially carrier-switching, which quickly becomes impractical. For large fleets of devices dispersed across regions, the logistical burden and costs of manual interventions can overwhelm operational resources and delay business goals.
With eSIMs, scalability is achieved through remote profile provisioning and management. You can provision and activate carrier profiles in bulk, whether deploying devices locally or globally. This eliminates the need to preconfigure SIMs for specific networks, streamlining device setup and drastically reducing deployment timelines.
Another critical aspect of eSIM scalability is its ability to adapt to changing regional networks. Network conditions, costs, or regulations can shift over time as devices operate in diverse geographies. With eSIMs, you can remotely switch carrier profiles in response to these changes.
Additionally, the centralized management of eSIMs lets you monitor connectivity performance, update profiles, and manage data usage across large device fleets through a single platform. This simplifies oversight, minimizes downtime, and enhances operational efficiency. By reducing the physical labor and infrastructure traditionally associated with SIM management, eSIMs lower the total cost of ownership, making large-scale IoT deployments more feasible and cost-effective.
Managing multiple device SKUs tailored to specific carriers or regions presents significant logistical and operational challenges for manufacturers and OEMs. For example, a router that supports only one carrier requires a separate SKU to accommodate a different carrier SIM. This lack of flexibility often leads to complications–customers might receive a router pre-configured for one carrier, activate their subscription, and discover no connectivity due to an unsupported network. Resolving the issue typically involves shipping a replacement router with a different SKU, resulting in increased costs, delayed deployments, and customer dissatisfaction.
Further complexities arise when inventory management becomes bloated with region- or carrier-specific SKUs, tying up resources and making demand forecasting more difficult. Additionally, manufacturers face challenges when expanding into new markets where carrier availability or preferences differ, requiring entirely new SKUs to be produced. Maintaining and distributing multiple SKUs for businesses scaling globally adds significant inefficiencies, creating operational bottlenecks that impact time-to-market and profitability.
eSIM technology eliminates this pain point by enabling a single device SKU to support multiple carriers. Instead of pre-configuring routers for specific carriers, manufacturers can deploy routers with eSIMs that dynamically download and activate the appropriate carrier profile during setup. While alternative solutions such as roaming SIMs or multi-SIM configurations may address similar challenges, eSIMs offer the added benefits of scalability, cost-efficiency, and seamless profile switching without physical intervention.
With eSIMs, carrier profiles can be added, updated, or removed remotely, allowing devices to dynamically adapt to evolving operational requirements, shifting network performance, or changing cost structures.
This flexibility also supports compliance with local regulations. Devices can seamlessly switch to local carriers to avoid restrictions on permanent roaming. Additionally, businesses can respond to sudden disruptions, such as carrier outages or regulatory changes, remotely provisioning new profiles without requiring physical intervention. In dynamic market conditions, this level of control ensures that your business remains agile, responsive, and better equipped to optimize connectivity costs and performance across global deployments.
eSIMs eliminate the logistical challenges associated with physical SIM cards by enabling OTA updates and carrier switching. This convenience translates into tangible benefits for your business. Devices can be pre-configured with a bootstrap profile and activated remotely, reducing the need for on-site technical intervention. For instance, a utility company deploying smart meters across hundreds of locations can provision connectivity centrally without dispatching technicians to individual sites. This accelerates deployment timelines and minimizes the risk of human error during SIM installation or carrier configuration.
In IoT deployments where connectivity reliability is critical, eSIMs deliver enhanced redundancy by supporting multiple carrier profiles stored on a single SIM. If a network experiences downtime, congestion, or reduced performance, the eSIM can automatically switch to another available carrier profile, ensuring uninterrupted service. This capability is especially vital for mission-critical applications where even minor disruptions can have significant consequences.
For example, healthcare monitoring devices in remote patient care rely on constant connectivity to transmit real-time health data. Similarly, autonomous vehicles and emergency response systems depend on seamless connectivity to operate safely and efficiently. With eSIMs, these devices can failover to alternative networks without manual intervention, ensuring reliability and resilience in unpredictable environments.
eSIM technology unlocks new market opportunities by enabling businesses to expand into regions with permanent roaming restrictions. With traditional SIMs, entering new markets often requires physically reconfiguring devices for local carriers—a process that can be costly, time-consuming, and disruptive. eSIMs address these challenges by allowing devices to connect to local networks dynamically using native carrier profiles that can be downloaded remotely.
This capability makes it easier for you to deploy IoT solutions in remote or underserved areas where connectivity may have previously been unreliable. For example, environmental monitoring devices deployed in rural regions can connect seamlessly to the strongest local network. Similarly, companies can confidently expand into emerging markets, leveraging eSIMs’ flexibility to accommodate regional carriers without hardware adjustments. By simplifying entry into new geographies, eSIMs empower you to scale operations and capture growth opportunities with minimal friction.
eSIMs may provide additional flexibility to respond to regulatory changes, such as mandates for local connectivity or restrictions on permanent roaming. For businesses managing long-term IoT deployments, this adaptability ensures devices remain compliant and operational as markets evolve.
eSIMs are more expensive than traditional SIM cards due to their enhanced software complexity and ability to host multiple downloadable profiles. While the cost of data with direct connectivity is often lower, the added functionality of profile management and network switching increases initial costs. Until production volumes scale up, the per-unit cost of eSIMs can remain elevated compared to legacy SIM solutions.
While the higher cost is a valid consideration, it is often outweighed by the long-term benefits and operational efficiencies that eSIMs provide. eSIMs are not designed for “least cost routing,” where profiles are switched daily to chase cheaper rates—a practice that introduces unnecessary complexity and overhead. Instead, they focus on long-term, stable connectivity by enabling you to optimize network performance, reduce downtime, and manage costs efficiently over the lifespan of a device.
The cost of eSIMs will naturally decrease as adoption increases and production volumes scale. Additionally, the operational savings achieved through simplified logistics, remote provisioning, and reduced downtime often offset the initial expense.
For devices to fully leverage eSIM technology, they must be capable of detecting that a unique carrier profile has been dynamically switched or downloaded without manual intervention. This requires both hardware and software compatibility to manage multiple network identities seamlessly. Device-level firmware must also be capable of recognizing APN changes, unique carrier firmware requirements, dynamic IMSIs and more.
Early eUICC SIMs, based on the SGP.02 standard, were designed for a primary and backup profile, limiting storage to four or five active profiles. These restrictions stemmed from both design intent and technical constraints at the time.
However, with the evolution to SGP.22 and the upcoming SGP.32 standard, profile management has improved, enabling greater flexibility. While most IoT devices only require a primary and backup profile, these advancements make it easier to support more dynamic deployments, particularly for devices that move frequently or operate in unpredictable network conditions.
Although eSIMs have a limited number of active profiles, this is rarely a practical limitation for most use cases. An eSIM can have multiple profiles embedded in the chip or can download and replace profiles OTA whenever needed, ensuring they always have access to the most suitable network. However, two to four profiles are sufficient for most IoT deployments—covering primary, backup, and occasionally region-specific carriers. Devices that are eUICC-certified should not encounter technical limitations, and concerns about switching between carriers can be mitigated by leveraging platforms that manage carrier relationships seamlessly.
Another challenge with eSIMs is the time required to download and activate a carrier profile, which can take several minutes depending on the network conditions and provisioning system. This delay can raise concerns about potential service interruptions during profile updates or network switches for mission-critical applications requiring real-time connectivity—such as medical devices like heart monitors or emergency response systems.
While profile download times are an important consideration, eSIMs most use cases do not require frequent profile switching or repeated downloads. Businesses deploying critical-use IoT devices can mitigate risks by implementing redundancy measures and optimizing provisioning schedules to ensure uninterrupted performance.
Profile switching raises concerns about energy efficiency and data usage for devices with constrained resources, such as battery-operated sensors or remote monitoring equipment. Frequent profile updates or changes drain battery life and increase data consumption, which can be problematic for devices operating in resource-limited environments.
However, devices typically maintain a single profile for extended periods unless a network issue or operational change necessitates a switch. For resource-constrained devices, profile updates can be scheduled during low-power states or maintenance windows to reduce the impact on battery life and data usage.
Switching carriers on an eSIM requires more than just selecting a new network; it involves establishing contracts with MNOs. For businesses deploying devices globally, this process can become increasingly complex. Negotiating contracts with multiple MNOs across different regions is often time-consuming, particularly in markets with unique regulatory requirements or limited carrier availability. Once agreements are in place, businesses must manage profile provisioning, ensure compliance with service-level agreements (SLAs), and monitor ongoing performance and costs to optimize connectivity.
These complexities are compounded when expanding into new regions where your business lacks established relationships with local carriers. The need to source reliable MNOs, negotiate terms, and integrate new profiles can delay deployments and increase operational overhead. For enterprises managing large-scale deployments, the administrative burden of maintaining multiple MNO relationships can quickly escalate, detracting from core business priorities.
While eSIMs simplify global connectivity, the complexities of IoT billing and monetization can remain a significant hurdle. Deploying devices across multiple regions often means managing disparate billing cycles, varying carrier pricing structures, and a flood of fragmented invoices from multiple MNOs. These challenges create inefficiencies that can bog down operations, introduce billing inaccuracies, and hinder the ability to track or optimize costs effectively.
For OEMs looking to monetize connectivity through subscription services, managing rate plans across different carriers, countries, and network technologies (such as NB-IoT vs. 5G) presents a significant challenge. Carrier pricing structures vary widely, meaning the cost of a given data plan can change depending on the region or network. Unlike traditional single-carrier models, where pricing remains relatively static, eSIMs introduce a new layer of complexity—switching between carriers affects an OEM’s cost basis, requiring careful adjustment of pricing strategies to maintain profitability.
To offer competitive and profitable subscription plans, OEMs must establish rate plans that align with regional market conditions while factoring in the cost differences between carriers. This includes everything from provisioning rate plans in a billing portal to determining appropriate pricing structures that maintain margins. Not every rate plan is available across all carriers, and switching networks via eSIM may require revising customer pricing models to ensure profitability while maintaining consistency in service offerings.
A sophisticated billing platform is essential to managing this complexity. OEMs need a solution that enables dynamic pricing adjustments, real-time cost tracking, and seamless integration with multi-carrier agreements. Zipit’s IoT connectivity management platform streamlines these challenges by providing a centralized system where OEMs can configure, manage, and optimize subscription plans across multiple networks. With Zipit, businesses can operationalize new rate plans, monitor margins as carrier costs fluctuate, and deliver transparent, flexible pricing to end users—all without disrupting operations.
Several critical factors must be weighed when evaluating whether eSIM technology is the right choice for your IoT devices. While eSIMs offer significant advantages, including global connectivity, flexibility, and reduced operational costs, their implementation depends heavily on specific business requirements and device use cases.
The type of connectivity required depends on your device’s operational needs, deployment locations, and data consumption. For low-data use cases—such as environmental sensors, parking meters, or basic asset trackers—traditional SIMs or roaming SIMs may provide a more seamless alternative, especially if your primary pain point is ensuring redundant connectivity.
However, high-data applications like video surveillance, wireless failover, Wi-Fi hotspots, or drones, may require reliable, high-bandwidth connections that roaming SIMs cannot support cost-effectively, or at all. Additionally, devices requiring continuous, low-latency connections—like autonomous vehicles or healthcare monitoring equipment—benefit from eSIMs’ ability to dynamically switch to the strongest available network.
You should assess the following for your specific use case:
An optimal billing model isn’t just about managing costs—it’s about creating opportunities for revenue growth and operational efficiency. Subscription billing provides a recurring revenue model, so you can bundle connectivity with your devices and offer tailored plans based on data usage, device function, or geographic location. Whether it’s a high-data IoT device requiring consistent performance or a low-bandwidth sensor operating in a specific region, subscription models can be designed to fit each use case and enhance customer satisfaction and loyalty.
Zipit’s platform makes managing subscription billing for cellular connectivity seamless. You can offer tiered data plans, pay-as-you-go options, or bundled packages tailored to customer needs. With Zipit’s centralized billing, multi-region connectivity costs are consolidated into a single, easy-to-manage invoice, minimizing administrative overhead and simplifying cost tracking. By integrating eSIM technology with Zipit’s billing tools, you can transform connectivity into a value-added service that drives customer loyalty and operational efficiency.
Your local, regional, or global market goals significantly influence whether eSIM technology is the right choice. eSIMs come with certain advantages but also with some baked-in assumptions, like the fact that you may be required to establish direct resell relationships with carriers in the different markets you enter. By working with Zipit, we take that burden off of your shoulders through our own longstanding direct resell authorization across the world’s tier-1 carriers.
eSIMs can equip your business to:
Switching between carriers using eSIMs requires more than just downloading a new profile—devices must be certified for each network they connect to. For example, a device initially certified for AT&T cannot automatically connect to Verizon without completing Verizon’s certification process. This step ensures the device meets the technical and performance standards of the new carrier.
While certification adds complexity and cost to deployments, ensuring reliable connectivity and carrier support is necessary. Incorporating certification planning early in the device lifecycle reduces friction when switching networks and ensures smoother global deployments. It also safeguards you from situations like unexpected terminations of service where your connectivity provider is incorrectly leveraging roaming agreements.
eSIMs have a higher upfront cost due to software capabilities that enable profile switching, remote provisioning, and global compatibility. However, eSIMs reduce long-term operational costs by simplifying logistics, profile management, and deployments.
Savings in the following areas often offset the initial costs:
If you have high data needs or devices requiring reliable multi-region coverage, eSIMs deliver cost savings over the device's lifecycle. Evaluating unit economics and scalability helps justify the initial investment.
eSIMs are powerful tools for IoT deployments, offering scalability, flexibility, and global reach. However, they may not always be the optimal choice for certain use cases or operational scenarios.
While eSIMs allow for remote provisioning and switching between carriers, this process can take time. Establishing new agreements with carriers, configuring profiles, and ensuring seamless transitions requires careful planning and management. For businesses that need to adapt rapidly to changing conditions or operate in mission-critical environments, the time required for profile switching could be a drawback.
When your primary goal is ensuring redundancy, then alternative options to eSIM like roaming SIMs likely make more sense.
When eSIMs are not the best fit for your deployment needs, other solutions, such as global roaming SIMs or multi-carrier SIM strategies, may offer advantages for specific use cases.
A global roaming SIM leverages pre-established relationships with carriers worldwide to provide seamless, wide-ranging connectivity. Unlike eSIMs, these SIMs do not require downloading and managing multiple profiles. Instead, they rely on roaming agreements to connect devices to the best available network.
This approach is particularly beneficial for deployments that require out-of-the-box connectivity without the need for management of different carrier profiles. For example, devices like fleet trackers that move across multiple regions can achieve reliable coverage without navigating complex carrier agreements.
A multi-carrier SIM approach may be the best option for high-data-use devices or operations in regions with variable carrier performance. This strategy involves sourcing individual SIMs from local carriers in each region, enabling devices to connect directly to the strongest, most reliable networks.
For example, a high-data IoT deployment might use an AT&T SIM in the U.S., a Vodafone SIM in Europe, and a Telefónica SIM in Latin America. This localized approach ensures optimized network performance, reduces latency, and avoids the roaming fees associated with global SIMs for devices with substantial data needs.
While this approach may involve managing multiple carrier agreements, it provides unmatched performance and cost efficiency for high-volume deployments, particularly in industries like logistics or fixed wireless applications.
No matter your connectivity needs, Zipit can provide a tailored solution. With pre-established relationships with top-tier carriers and a centralized connectivity management platform, Zipit simplifies the complexities of IoT connectivity, helping you focus on growing globally.
While eSIMs offer unmatched flexibility, the real value lies in choosing a provider with the proper infrastructure, expertise, and relationships to ensure seamless, reliable global deployments.
If you’re deploying IoT devices globally, the choice between an MVNO and an MNO is critical. MNOs provide direct access to their networks, but managing multiple contracts with individual operators quickly becomes a logistical burden. Each carrier relationship requires negotiation, billing coordination, and compliance management, creating unnecessary complexity for OEMs looking to scale.
IoT MVNOs eliminate these challenges by leveraging pre-established relationships with multiple MNOs. This allows them to offer seamless, global connectivity through a single point of contact. Instead of navigating carrier-specific agreements or worrying about regional restrictions, OEMs can rely on an MVNO to handle the complexities of multi-carrier connectivity.
With an MVNO like Zipit, the process is simplified even further. We have many longstanding and authorized resell relationships with the tier-1 carriers globally. Our eSIM enables you to access all of those carriers and we provide a turnkey solution to operationalize and offer cellular connectivity as recurring revenue streams. The result is accelerated time to market and less operational complexity.
The success of eSIM technology relies heavily on the provider’s ability to ensure seamless, reliable connectivity across multiple networks. This hinges on the provider’s relationships with top-tier MNOs. If a provider lacks good standing with carriers, there is a real risk of losing access to critical backends, like bootstrap profiles, due to improperly negotiated agreements or non-compliance with carrier standards. This can leave devices without connectivity, causing disruptions that are costly and difficult to resolve.
Zipit’s established relationships with leading MNOs ensure reliable, uninterrupted access to carrier networks worldwide. Devices can seamlessly connect to the best available networks, switch profiles when needed, and fully comply with carrier requirements. Additionally, Zipit removes the burden of managing multiple carrier contracts, providing you access to global connectivity without negotiating complex agreements independently.
IoT deployments require diverse data consumption, ranging from low-bandwidth sensors to high-usage devices. A robust eSIM provider should offer a variety of data plan options tailored to these use cases. Zipit’s multi-carrier relationships give access to flexible data plans optimized for performance and cost efficiency across regions.
With Zipit, you can avoid overpaying for unnecessary connectivity or encountering restrictions from providers whose plans lack flexibility. Whether you require small data packages for remote sensors or high-gigabyte plans for mission-critical applications, Zipit provides solutions that scale with your operational needs.
An ideal eSIM provider must support multiple cellular technologies, such as 4G LTE, 5G, and emerging low-power networks like LTE-M and NB-IoT. As IoT deployments grow, you need the flexibility to integrate new connectivity standards without switching providers or modifying hardware. This capability is especially critical for global deployments, where different regions may have varying network coverage and technology availability.
Zipit’s ability to accommodate diverse cellular technologies ensures businesses can expand into new markets seamlessly while maintaining optimal connectivity. Our connectivity management platform ensures your devices remain compatible with current and future cellular technologies, providing long-term value and investment protection.
Learn more: NB-IoT vs. LTE-M: Which Cellular IoT Technology Is Right for You?
Working with the wrong MVNO can introduce significant risks, such as carriers severing backend access due to improper business practices. This can result in a loss of connectivity, forcing customers to scramble for solutions.
Zipit’s established relationships with carriers streamline connectivity provisioning, significantly reducing the risks associated with carrier contract mismanagement. By ensuring compliance and maintaining strong agreements with top-tier MNOs, Zipit eliminates the chance of losing access to critical systems.
As your business scales, achieving seamless global connectivity demands more than technology—it requires a trusted partner with the expertise, tools, and relationships to simplify the journey. While eSIM technology promises flexibility and scalability, the real challenge lies in managing carrier relationships, optimizing performance, and ensuring deployments remain reliable and cost-effective.
For example, switching carrier profiles implies that you have the contractual relationship in place with the new carrier whose profile you are using, the necessary rate plans, the coverage plans to cover the territory and the billing infrastructure to monetize that new connectivity.
By partnering with Zipit, you gain a trusted provider that ensures IoT deployments are successful, cost-effective, scalable, and reliable. Zipit removes the challenges of carrier management, safeguards connectivity, and provides the tools needed to maximize the value of your IoT solutions.
Achieving reliable and uninterrupted global connectivity for IoT devices requires more than just advanced technology—it hinges on strong, strategic relationships with carriers. Zipit’s established partnerships with top-tier MNOs ensure secure, compliant, and robust agreements back your devices.
Our carrier relationships enable us to deliver consistent network access across more than 160 countries. Whether your devices rely on NB-IoT for low-data efficiency or 5G for high performance, Zipit ensures seamless connectivity tailored to your deployment needs. Unlike single-carrier solutions, which can result in coverage gaps or compliance hurdles, Zipit’s multi-carrier approach dynamically adapts to regional network performance, regulations, and availability.
Zipit offers out-of-the-box solutions so you can streamline deployments, scale operations with confidence, and maintain robust coverage wherever their devices operate.
IoT deployments are rarely one-size-fits-all—different use cases require different data consumption levels, performance, and cost-efficiency. Zipit offers flexible data plans that can be optimized for virtually any application, whether you’re managing a fleet of low-data battery-powered sensors or high-bandwidth industrial devices transmitting in real time.
For businesses operating globally, this flexibility ensures predictable costs and optimized connectivity. Zipit’s data plans allow businesses to:
As networks evolve, so do the connectivity requirements of IoT devices. Zipit provides solutions that support current and emerging cellular technologies, including 4G LTE, 5G, RedCap, LTE-M, and NB-IoT. This ensures your business can confidently deploy, knowing your devices will remain compatible as networks advance.
By future-proofing connectivity, Zipit helps businesses stay agile and competitive in a constantly shifting technological landscape.
Managing global IoT deployments can be overwhelming without the right tools. With Zipit’s IoT connectivity management platform, you can:
Learn how to streamline cellular activations and invoicing with Zipit.
Choosing Zipit means choosing more than a provider—it means partnering with a team dedicated to solving your connectivity challenges and contributing to your IoT success. With Zipit, you gain the tools, expertise, and relationships to keep your devices connected, your operations efficient, and your business moving forward.
With Zipit, you can simplify global connectivity, remove barriers to scale, and ensure your IoT deployments succeed anywhere in the world.
Learn how Zipit has helped countless IoT businesses achieve connectivity and scale their devices globally. Contact our team of IoT connectivity experts to explore how our solutions can help your business succeed.
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