E-SIM (embedded SIM) is a digital version of the physical SIM (Subscriber Identity Module) card that identifies your phone virtually and provides it with a network connection. SIM cards were introduced as a core feature of the 2G almost two decades ago. E-SIMs, also known as virtual SIMs, can be programmed from anywhere through software. These e-SIMs are now being incorporated into new versions of smartphones, tablets, smartwatches, drones, and maybe even cars. E-SIM will be embedded permanently in the hardware of a regular SIM card chip.
Advantages of Using an E-SIM over a Physical SIM
- Security Whenever a phone is stolen or a SIM card is stolen, there are very high chances of it being misused, especially since the UPI apps, mobile banking, and OTPs are all phone number-based. E-SIM provides security against the theft of a SIM card. Thieves cannot use the SIM even after being stolen as e-SIM can be accessed remotely. Not only that, if a phone is stolen, the SIM cannot be thrown away and can still be traced after theft.
- Network switches E-SIM can be easy to switch to any network without much time and energy. To activate a physical SIM, one has to go to the service centre and physically apply for a change of network, which may take hours or even a full day. But with e-SIM, it will be easier and faster to change operators.
- Space saving Having one less input to the phone can save space in the hardware as well as reduce an opening which will reduce the amount of dust entering inside.
- Hassle-free It is easier to transfer the contacts or data associated with the SIM when there is a change of smartphones. It will be a quick and hassle-free process to change phones and there is no necessity to change SIMs, which is sometimes inconvenient.
- Efficient networks With the consumer’s ease of switching networks, it may be important for the companies to provide efficient networks and signals for the consumers to hold on to them. This may lead companies to provide better network reachability.
Issues with E-SIM
- Increased competition Due to the ease of changing a network without much hassle, it will be easier for consumers to change networks. This could make it tough for the companies to hold on to consumers and may lead to intensified competition.
- Effect on profits With the possibility of consumers switching, the companies may compete with each other to provide a network at a lower cost than others, thus, pulling down other operators’ prices down as well. This would hurt their profits and may lead to a price war. (One good example: When Jio was launched, it offered SIM cards for free and provided unlimited data. Consequently, the existing networks had to provide unlimited data at competitive prices.)
- Initial stage The usage and applicability of e-SIMs are still at nascent stages and need further development.
- Availability E-SIMs are currently available only in high-end and very few phones like Apple iPhones and Google Pixel. So, the number of people using it is still very low.
- Emergency If there is a problem with the physical SIM, it is easy to pull out and change into another phone. But with e-SIM, it may not be as easy and may take time to restore to normal services.
- Privacy concerns It may become easy for service providers to track the location of users better than before. It may be a concern where the laws are not stringent and the government is constantly tracking citizens.
- Travelling E-SIMs are yet to be adopted. It may be a problem to use them in all countries. So, it may become difficult while travelling across countries as we cannot easily swap it with a local SIM.
Till now, e-SIMs have been a substitute for the second SIM slot, especially in phones having only one SIM slot like Apple phones. However, in recent times, few mobile companies including Apple and Google are also introducing phones without a SIM slot. Along with e-SIM, there is also a new SIM, called iSIM. It is integrated into the chipset and does not require an additional chip to integrate. It is not widely available and is still in the development stage. It is said to be 100 times smaller than the nano SIM card.
With digitalisation and growing technology, most products that are now relevant may become redundant in the future. This is called creative destruction.
Creative destruction is a theory that implies that old products and methods will be forgotten to welcome comparatively efficient and new technology to improve the way of living and incomes of a society. Evolution of computers from typewriters, mobile phones from landlines, smartphones from keypads, inbuilt memory from external memory cards, and now, e-SIM cards from physical SIM cards. All of this is a part of evolution.
Conclusion
Most new technologies, including e-SIM, come with both advantages and disadvantages. It has prospects of making the phone compact and there is a possibility of increased durability due to low dust penetration. At the same time, one has to consider the fact that it would not be easy to switch between networks as fast as the physical SIM. It is safer to track or use the e-SIM, especially to track criminals or when there is an incident of theft, but there is also a possibility of all the citizens being tracked down every day, which is a complete invasion of privacy, i.e., the unjustifiable intrusion into the personal life of a person without his/her consent. This technology is still at a nascent stage. So, with time and evolution, it may become the new normal to adopt the e-SIM technology. New technologies have to be welcomed and accepted provided they do not cause major harm to the world. The concerned tech companies must focus on these issues and ensure to minimise them to the extent possible.
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