How China is responsible for slow eSIM adoption in India
What's the story
Despite the potential benefits of eSIMs or embedded SIMs, their adoption in India remains sluggish.
Major telecom operators like Airtel, Reliance Jio, and Vodafone-Idea have supported eSIM technology for years.
However, the widespread adoption of eSIMs in India faces significant hurdles. So, why is that?
Well, industry experts point to the influence of Chinese government policies as a key reason for the slow eSIM rollout in India.
Market influence
Chinese smartphone brands' reluctance to adopt eSIM technology
Chinese smartphone brands such as Xiaomi, Vivo, OPPO, OnePlus, and Realme have been slow to integrate eSIM technology into their range of products due to China's strict regulations on eSIMs over security concerns.
This has resulted in a limited availability of eSIM-compatible smartphones, particularly in the budget and mid-range segments.
While smartphone brands like Apple, Google, and Samsung have integrated eSIM technology into their flagship models, the adoption rate is significantly lower among Chinese manufacturers.
Advocacy efforts
Indian telecom operators push for wider eSIM adoption
Indian telecom operators are pushing for broader acceptance of eSIMs in the budget smartphone segment.
They argue that this technology can lead to cost savings and enhanced call quality.
Airtel's CEO, Gopal Vittal, emphasized the benefits of eSIMs earlier this year, stating that they "will provide seamless connectivity" in today's digital-first lifestyles where various devices are interconnected.
Benefits
Why eSIMs are better than traditional cards
eSIMs provide greater security as they are embedded within the phone, making them harder to steal or lose compared to physical SIM cards.
Additionally, eSIMs allow users to store multiple profiles on a single device, enabling seamless switching between different network operators or data plans.
You can also activate local plans easily when traveling internationally, eliminating the need for multiple physical SIM cards.
eSIMs also eliminate the need for a SIM card slot, allowing for thinner device designs.
Market penetration
Slow growth of eSIM-enabled smartphones in India
As of December 2023, only 10-15% of smartphones sold in India were equipped with eSIMs. Predictions suggest a modest increase to 20% over the next five years.
This contrasts sharply with the US where eSIM penetration has reached 70%.
Experts predict that as costs associated with eSIM technology decrease and supply chains improve, more manufacturers will likely incorporate eSIMs into their budget models.