X-Mobility Launches New Consumer eSIM Service

U.K.-based MVNO enabler x-Mobility has announced the launch of its new consumer App eSIM service. This is a white-label consumer eSIM service for MVNOs, brands and MNOs to offer new data roaming packages to customers.

App eSIM works by allowing users to subscribe to extra data tariffs on top of the ones accessed through their physical SIM, such as subscribing to a local data plan overseas to avoid expensive roaming fees.

This complements x-Mobility’s existing AppVNOTM service, which provides subscribers with a branded calling and messaging app for signing up to additional mobile numbers.

There are phones with eSIMs, and there are dual-SIM phones. This product from x-Mobility appears to combine the two concepts, so that the second SIM is an eSIM. This would enable an operator to offer its subscribers access to other data plans than the one they have subscribed to with their original SIM.

One example is roaming data packages which are needed on a short-term basis while traveling, when the user does not want to get a new phone or subscribe for a service period longer than the trip itself. Other examples could include data needed for work on a personal phone or vice versa, and special gaming or streaming packages needed on a short-term basis.

As x-Mobility is an MVNO enabler, this product would seem to be best for virtual operators and budget brands of MNOs. And indeed, one of the important drivers of MVNO subscription is the desire for flexibility and economy in plan services. By allowing users to have access to extra data packages at short notice without needing a separate device, App eSIM could satisfy this criterion. While major operators may consider using this functionality, as well, it seems best adapted for the virtual operators.

Tarifica is a global SaaS company and a market leader in the real-time collection, analysis and delivery of telecom plan and pricing data worldwide. Through a mix of AI, modeling and market expertise, Tarifica tracks hundreds of thousands of plan and pricing data points daily. No other company tracks more. Tarifica's mission is to continuously convert data into the dynamic intelligence that fuels opportunities for its clients, the world's leading operators, regulators and consultants.
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Telekom Launches Children's eSim Smartwatch

Deutsche Telekom said it has introduced a new generation of smartwatches for children, the Xplora X5 Play eSIM. Fitted with an eSim, the watch offers the functions of a mobile phone for children with additional security functions such as a GPS tracker and SOS button. 

The GPS function enables parents to see the location of their child in real time and to define so-called safe areas. If the child leaves this area, the parents will receive a message. Children are not able to surf the internet with the smartwatch or to play games, and a “school mode” function can be activated to limit use during class so that only the time function and the SOS are available. Up to 50 contacts can be saved by the parents in the watch. 

The Xplora X5 Play eSIM is available with the Smart Connect S tariff. The tariff carries a one-off fee of €97.44 (US $114.55) with a contract of 12 months, and customers pay €4.83 (US $5.68) per month. With a contract for 24 months, customers pay €0.97 (US $1.14) once for the smartwatch, and €9.70 (US $11.40) per month for the contract. Customers who buy a Smart Connect S with a 24-month contract by 30 September will save the basic monthly fee for the first six months of the contract.

As it becomes more and more usual for children, even young ones, to have mobile devices, a variety of products are being marketed to them and their parents. The idea of a smartwatch for children, as opposed to a smartphone or tablet, seems to us to be a sound one. Children are more inclined that adults, on the whole, to lose devices, so having it strapped to the wrist would tend to solve that problem. And since the primary purpose of this device is safety—monitoring the child’s location and enabling the child to communicate with the parents while away from home—making sure it stays with the child is key, and a smartwatch fulfills the purpose very well. That should help the device and DT’s service plans get some traction in the market.

On the other hand, the rather spartan offerings—no internet access, no games—could make this smartwatch less appealing to children themselves. And to the extent that parents are influenced in their buying choices by their children’s expressed desires, this could count against the Xplora X5 Play eSIM. In that connection, we might point out that as far as the plan details are concerned, DT is selling the 24-month option aggressively, by nearly eliminating the initial fee and forgiving the first six monthly payments if the subscriber opts for 24 rather than 12 months. But considering how much children change in two years; this device could cease being appropriate for its user within that time frame.

Tarifica is a global SaaS company and a market leader in the real-time collection, analysis and delivery of telecom plan and pricing data worldwide. Through a mix of AI, modeling and market expertise, Tarifica tracks hundreds of thousands of plan and pricing data points daily. No other company tracks more. Tarifica's mission is to continuously convert data into the dynamic intelligence that fuels opportunities for its clients, the world's leading operators, regulators and consultants.
Learn more about Tarifica at www.tarifica.com.

Russian Operators Oppose Introduction of eSIMs

Russian mobile operators MTS, Megafon and Beeline are opposing the introduction of eSIMs in the country according to a news report. The operators object to eSIMs, which are used by the latest smartphones from Apple and Samsung, on the grounds that they could lead to price wars and that they do not support Russian encryption standards.

The operators expressed their position during a meeting with representatives of the government and the federal security service FSB. Representatives of the FSB were also opposed to the eSIM technology.

The eSIM technology, which is becoming more and more widespread, brings various benefits to users, but from the  point of view of the established operators in the mobile market, the advantages are less clear. Certainly, we can understand why MNOs might even think there are no advantages.

For one thing, with embedded eSIMs, changes of service provider can be made seamlessly, without changing devices and even without needing to obtain a new SIM card. This would increase churn by making it easier for consumers to switch from the services of one operator to those of a rival. And the rivals that would most benefit from this process are likely to be the more disruptive ones, the budget-oriented and narrowly targeted MVNOs. It is also possible that eSIMs would facilitate the entry of foreign telecoms into the Russian market. Therefore it is completely understandable why Russia’s MNOs would oppose the introduction of eSIMs.

However, we feel that despite the existence of these theoretical objections to eSIMs, in the real world of today’s markets, they are not very likely to have a significant negative impact on MNOs’ business. The major operators have a good deal of momentum in their markets, with a long-established customer base, and in most cases it will likely take more than just the ease of using eSIMs to cause users give up their accustomed service in numbers that can harm the operators. In fact, eSIMs could even save MNOs money, in that their use will eliminate certain costs such as the creation, distribution and support of various formats of physical SIMs. Of course, operators do need to be vigilant about maintaining their customer base and keeping their network service competitive, but we doubt that eSIMs are a game-changer, and so MTS, Megafon and Beeline probably do not need to be so concerned. (As to the question of encryption, we cannot comment at this time because we do not sufficient information about Russian encryption standards.)

In addition, there are actually tangible advantages for MNOs in eSIMs, outside the realm of traditional mobile services. In the emerging realms of IoT and M2M, eSIMs enable a wide range of applications that stand to bring large amounts of revenue to operators that embrace them. If the Russian operators, took this route rather than lobbying to keep eSIMs out, they could put themselves on a path of growth not only of revenue but of possibilities.

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 If you have any questions about this article, feel free to contact our Editor-in-chief John Dorfman at jdorfman@tarifica.com

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