00:01Apple's announcement that the new iPhone 17 Air will only be available around the world without physical SIM cards
00:08marks a new advance for the virtual eSIM technology the firm has relied on in the US for years.
00:19Physical SIM cards contain all the information a phone needs to connect to a mobile network
00:24using the contract and number of a specific subscriber.
00:28Users have been slotting the fingernail-sized plastic cards into their phones for decades
00:34when setting up a new handset, switching providers or travelling.
00:38eSIM contain digital data with the same information as physical SIM cards
00:44providing a secure means for authenticating devices onto networks, the GSMA Global Standard Setting Body says.
00:53Most handsets released in recent years are capable of working with eSIM,
00:58although many still offer a physical SIM slot as well.
01:02Users can set up a new device or transfer eSIM between phones
01:07through methods including scanning an operator-provided QR code,
01:11requesting a notification or text message from their network,
01:15or selecting the option to transfer an eSIM in their old phone settings.
01:20Purely digital eSIM can be downloaded remotely,
01:29simplifying tasks like signing up with a new network provider or switching operators,
01:35for example, to connect to a cheaper local network when travelling.
01:39Using them also saves on plastic waste and distribution costs.
01:43But setting up eSIM in the first place requires internet access,
01:48meaning users firing up a new phone might need to connect to their home Wi-Fi network to activate their connection.
01:55And travellers should activate their local eSIM in advance if they want service from the moment the plane lands at their destination.
02:03Just like with physical SIMs, eSIMs can be activated or deactivated by the user on the handset,
02:10meaning that in theory they are no more or less trackable by operators or governments.
02:20Apple dropped physical SIM cards in the US starting with 2022's iPhone 14.
02:26The tech giant's website promises greater flexibility, enhanced convenience, better security, and seamless connectivity for eSIM users.
02:36Fewer physical parts fits in with the vision of a slimmer, easier-to-use phone, long pursued by Apple,
02:43CCS Insight analyst Kester Mann told AFP.
02:47On the business side, perhaps they want a little bit more control over the journey to connect customers to mobile operators when setting up a new phone, he added.
02:56Consultancy Roland Berger agreed, suggesting in a report last year that eSIM allow manufacturers to get between mobile operators and end users, causing operators to lose control.
03:10While competitors like Samsung have yet to release an eSIM-only phone, the expectation is that they'll also go down that route as well, Mann said.
03:25Google's latest Pixel 10 phones come in an eSIM-only version in the US.
03:30eSIM adoption is expected to gain traction in the short-to-mid term, Roland Berger predicted, forecasting 75% of all smartphone connections via eSIM in 2030, up from 10% in 2023.
03:48CCS predicts the number of eSIM-capable handsets will grow from 1.3 billion currently to 3 billion in 2030.
03:57In a survey of mobile network managers, Roland Berger found little sign of higher customer churn from the grateries of switching providers.
04:10Future uses of eSIM could include mobile operators offering subscribers more individually tailored services, the consultancy suggested.
04:20For tourism, CCS Insight predicts local eSIM sales will rise from 70 million in 2024 to 280 million by 2030.
04:32Providers such as Aralo and Holofly have sprung up to sell cheap foreign connectivity to tourists,
04:39although big incumbents like airlines and mobile operators are beginning to offer their own alternatives.
04:45eSIM also simplify machine-to-machine communication, allowing remote setup or reconfiguration of connected devices, from watches to cars or smart electricity meters.
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