The telecommunications industry is undergoing a shift with the rise of embedded SIM (eSIM) technology. Unlike traditional physical SIM cards that require manual swapping, eSIMs are embedded directly into a device’s hardware and can be programmed remotely. This transition is not only enhancing consumer convenience but also streamlining operations for telecom operators and manufacturers. The average cost of a plastic SIM card is around $2.50, inclusive of the card itself, packaging and delivery. In contrast, the average cost of provisioning an eSIM is between $0.20 and $0.50, making it a significantly more economical option. Additionally, telecom operators can offer enhanced services such as instant activation, dual-SIM capabilities, and seamless international roaming without requiring users to switch physical SIMs.
Recognising these advantages, major Indian telecom companies have been progressively rolling out eSIM services. Bharti Airtel was the first to introduce eSIM services, followed by Vodafone Idea Limited (Vi), which initially offered the service to postpaid users before later extending it to prepaid customers. Reliance Jio also entered the eSIM space soon after.
This momentum continues to accelerate, with key industry players embracing eSIM technology as a cornerstone for future-proofing their networks and enhancing user experiences. Matrix Cellular launched India’s first home-grown eSIM in August 2024, providing cost-effective international roaming across more than 150 countries through an app-based platform. In December 2024, London-based Commbitz entered the Indian market, offering high speed, borderless eSIM connectivity for travellers and businesses. More recently, in March 2025, SHIFT partnered with Thales to integrate EcoSIM technology into its sustainable smartphones, supporting modular, repairable devices with multiple connectivity plans.
The deployment of 5G networks in India is further accelerating eSIM adoption. With 5G’s ultra-low-latency and high speed connectivity, eSIM-enabled devices can switch between networks more efficiently, optimising performance and coverage. Additionally, 5G enhances the security framework of eSIM deployments, enabling more robust authentication and encryption mechanisms. eSIMs also support network slicing, allowing telecom operators to allocate dedicated bandwidth for specific applications, ensuring optimised performance for diverse use cases, from consumer devices to industrial internet of things (IIoT).
eSIM in consumer electronics
The adoption of eSIM technology in India is being driven by premium smartphone brands such as Apple, Samsung and Google. Apple first introduced eSIM-enabled devices with the iPhone XS, iPhone XS Max and iPhone XR in 2018, and since then, all iPhones have supported eSIM technology. Google followed suit by bringing eSIM support to India with the Pixel 2 in 2017, while Samsung later integrated eSIM functionality into its Galaxy smartphones in 2020, further expanding the ecosystem.
Beyond smartphones, eSIM technology is becoming a standard feature in laptops and wearables, offering users greater flexibility and seamless connectivity. Companies like Acer, HP and Dell have introduced eSIM-capable laptops that eliminate the need for external SIM cards or reliance on Wi-Fi. Notable models include the HP Spectre x360 14, Lenovo ThinkPad X1 Carbon and Dell Latitude 9510, all of which support built-in mobile network connectivity for professionals and travellers.
Smartwatches are also leveraging eSIMs to provide standalone connectivity, allowing users to make calls, send messages and access mobile data without needing to be tethered to a smartphone. This feature is particularly beneficial for fitness and health-tracking devices, enabling real-time data syncing and emergency communication. Notable eSIM-enabled smartwatches include the Amazfit GTR 3 Pro, Huawei Watch 3 Pro, Fossil Gen 6, Samsung Galaxy Watch 5 and Galaxy Watch 5 Pro, and Apple Watch Series 7 and Series 8, all of which cater to users seeking uninterrupted connectivity on the go.
eSIM in M2M connectivity
Traditionally, IoT devices relied on physical SIM cards for connectivity. Each SIM card had to be manually inserted, configured and sometimes replaced, making it time-consuming, costly and impractical for large-scale operations like agriculture sensors, utility meters or connected vehicles in far-flung areas. Built on GSMA’s Remote SIM Provisioning standards, eSIM technology eliminates these limitations by enabling remote network switching and profile provisioning without manual intervention. This capability is especially valuable in logistics, where tracking devices equipped with eSIMs automatically connect to local networks as shipments move across borders, ensuring seamless real-time monitoring. For instance, Tata Fleet Edge, a fleet telematics solution, leverages eSIM technology to provide real-time vehicle tracking, fuel analytics and predictive maintenance for commercial fleets.
The automotive sector is another major adopter of eSIMs, utilising them for real-time navigation, telematics and over-the-air software updates. Indian automakers are integrating eSIMs to enhance vehicle-to-infrastructure communication, ensuring uninterrupted connectivity across networks. A notable example is the JioMotive OBD GPS Tracker and Router, a 4G eSIM-powered plug-and-play device that offers Wi-Fi connectivity inside cars, engine control, geofencing and driving behaviour analysis. Pre-configured with a data plan, it eliminates the need for separate SIM provisioning, simplifying the user experience.
For enterprises, eSIM adoption translates into lower operational costs, improved scalability and enhanced security. Unlike traditional SIMs, eSIMs integrate advanced encryption mechanisms to prevent unauthorised access and SIM cloning, making them ideal for industries handling sensitive data, such as healthcare and finance. Reports indicate that 85 per cent of enterprises consider eSIMs critical for IoT success, as remote provisioning allows businesses to scale deployments efficiently while reducing time-to-market.
Furthermore, recognising the increasing role of eSIMs in M2M communications, the Telecom Regulatory Authority of India (TRAI) introduced new regulatory recommendations in March 2024 to enhance security and streamline eSIM deployments. Key measures include mandatory profile conversion, requiring imported M2M devices operating on international roaming in India to switch to local telecom service provider profiles within six months of activation or upon a change in ownership. Additionally, TRAI has emphasised stricter know your customer (KYC) requirements to mitigate fraud risks. The recommendations also propose a structured framework for eSIM profile switching and subscription manager secure routing (SM-SR) swapping, ensuring greater flexibility for users. Further, TRAI has suggested restricting SM-SR site management to entities holding unified access service licences, reinforcing regulatory oversight. These steps aim to create a secure, competitive and well-regulated eSIM ecosystem while fostering domestic M2M eSIM development.
Challenges
While eSIMs offer clear cost and operational benefits for telecom operators, the scenario is different for smartphone manufacturers. Integrating eSIM support involves additional hardware components, design changes and certification processes, all of which add to manufacturing complexity and cost. Although India’s smartphone market is now seeing strong growth in the mid-premium and premium 5G segments, a significant portion of shipments still fall under the cost-conscious bracket, where even small increases in hardware costs can impact pricing strategies. Chinese brands like Xiaomi, Vivo, Oppo, OnePlus and Realme, traditionally strong players in India, have been cautious in rolling out eSIM-compatible models. Their slower adoption is partly due to limited eSIM usage in their home market of China, and partly because they continue to balance advanced features with affordability to maintain competitiveness in price-sensitive tiers. As a result, many continue to prioritise physical SIM slots, especially in models aimed at volume-driven segments.
In India, eSIM uptake remains sluggish due to limited consumer awareness and entrenched habits. Many users are unfamiliar with the benefits of eSIMs and perceive physical SIM cards as more tangible, reliable and easier to manage, especially when switching devices or networks. This mindset, coupled with inconsistent retailer knowledge and minimal marketing efforts from telecom operators, has slowed consumer migration to eSIMs.
From a sustainability perspective, eSIMs offer an opportunity to reduce environmental impact by eliminating the need for plastic SIM cards and packaging. With approximately 1 billion mobile connections in India, 800-900 million of which are active, telecom providers issue 400-500 million SIM cards annually. Given the tepid consumer awareness, it is estimated that it will take at least six to seven years for eSIMs to account for half of this volume.
The way forward
That said, while India’s adoption of eSIM technology has been relatively slow compared to markets like the US, the UK and parts of Europe, where eSIM is already becoming standard, the outlook remains promising. With the gradual expansion for seamless digital experiences, India is poised to catch up, creating a more flexible, secure and sustainable digital ecosystem that serves both consumer and enterprise demands.
Looking ahead, as supply chains mature and the cost of technology falls, manufacturers are expected to integrate eSIMs into more affordable devices, making the technology accessible to a broader consumer base. Currently, only about 10 per cent of smartphones in India support eSIMs, but this number is projected to double to 20 per cent within five years.
Government incentives could accelerate this transition by encouraging telecom operators and smartphone makers to integrate eSIM technology across all price segments. The increasing need for seamless global connectivity is also expected to drive adoption.
Beyond eSIMs, the industry is exploring the next evolution that is integrated SIMs (iSIMs). Unlike eSIMs, which are embedded in a device’s hardware, iSIMs are built directly into the device’s chipset, offering even greater space savings, cost efficiency and security.
Moreover, the shift to digital-only SIM solutions aligns with global sustainability goals. By reducing plastic waste and enabling modular, repairable device designs, eSIM and iSIM adoption can contribute meaningfully to lowering the telecom sector’s carbon footprint.
Harshita Kalra
