Entitlement Server: Unlocking the Power of eSIM and Smartwatches
In the ever-competitive consumer service market, customer acquisition and retention play a pivotal role in the success or failure of companies. One of the challenges faced by carriers today is the delay customers experience between deciding to sign up and actually being up and running with their chosen carrier. The traditional process of obtaining a physical SIM card can take days, during which customers might reconsider their decision. However, with the advent of eSIM technology, this transition period can be dramatically reduced to just a couple of minutes, provided it is implemented correctly. NetLync and Giesecke+Devrient(G+D)'s entitlements solution, AirOn360® ES, offers a seamlessly implemented eSIM solution that significantly increases the likelihood of customers following through on their decision to sign up with a carrier.
The Rise of eSIM
As eSIM-enabled devices become increasingly prevalent, they present carriers with an opportunity to provide convenient services and elevate the user experience. Simplified and digital activation processes, device synchronisation, and (e)SIM transfers are among the benefits that eSIM technology offers. For users, eSIM enables hassle-free connection and easy transfer of existing plans, while also allowing multiple cellular plans on a single device. Furthermore, the growing availability of network services, such as the Apple Watch, and enhanced device features further amplify the potential of eSIM technology. This is where the entitlement server (ES) comes into play, acting as a vital component for carriers to deliver exceptional customer experiences, reduce churn, and increase overall customer satisfaction.
Entering the Hyper-Growth Phase
eSIM adoption has now passed the inflection point and reached a critical turning point and is ready to enter a phase of hyper-growth, primarily driven by its increasing adoption in smartphones, smartwatches, and cellular IoT applications. This growth trajectory will be further accelerated by the growing awareness of eSIM among MNOs and OEMs. Notably, Apple's introduction of an eSIM-only iPhone in the US market underscores the diminishing relevance of physical SIM cards and necessitates carrier preparedness. It is no longer a question of "if" but rather "when" carriers must adapt to this technology. The arrival of an eSIM-only iPhone not only familiarises consumers worldwide with eSIM technology but also encourages other OEMs to consider adopting eSIM in the future. Those who are not equipped with the necessary capabilities, including SM-DP+ and ES, will risk losing customers to more prepared competitors.
Expanding Use Cases and Requirements
eSIM is revolutionising how subscribers activate and utilise their mobile devices, opening up new use cases and imposing new requirements on carriers. While smartphones continue to be the driving force behind eSIM awareness, smartwatches are gaining traction and contributing to the increased penetration of eSIM technology. This trend is further supported by the global adoption of entitlement servers by carriers, indicating the rising popularity of smartwatches and other companion devices powered by eSIM.
Commenting on eSIM adoption across different device categories, Senior Analyst Ankit Malhotra said,
Cellular connectivity in smartwatches is growing steadily which is also helping increase the penetration of eSIM-supported smartwatches. The adoption of entitlement servers by MNOs worldwide is a testament to the growing number of smartwatches and other companion devices powered by eSIM. Other cellular-capable consumer devices such as laptops and tablets will also see rapid eSIM adoption in the coming years.
The Power of Entitlement Server
The presence of the Apple Watch has become a revenue generator for many carriers, as it increases Average Revenue Per User (ARPU) and opens up new revenue streams through companion device upselling and subscriptions. Consequently, carriers without support for the Apple Watch face acquisition and retention challenges, as customers are drawn to carriers that offer compatibility with this popular wearable device. To sell smartwatches, the entitlement server becomes mandatory, and carriers cannot afford to overlook its significance.
Introducing AirOn360® ES: a Cloud-Based Entitlements Solution
To address the evolving landscape of eSIM management, NetLync and its partner G+D have launched AirOn360® ES —a cloud-based entitlement solution that forms part of G+D's comprehensive eSIM management ecosystem. This solution enables carriers to efficiently and securely manage the lifecycle of eSIMs without incurring any CapEx or setup fees. It not only supports eSIM Quick Transfer and Apple Watch but also encompasses traditional use cases like VoLTE, VoWiFi, and 5G, among others.
AirOn360® ES continually enhances OEM features and elevates customer experiences for iOS users. Through a self-service portal, any qualified carrier can swiftly register, build, test, and deploy entitlements APIs within a few weeks, streamlining the implementation process.