Big tech’s share in mobile operators’ revenue.

As smartphone connectivity advances, the e-SIM becomes popular. However, it poses risks, as I found when activating my new iPhone 15 unexpectedly.

During my transition to an iPhone 15 Pro, a surprising event occurred: my physical SIM card vanished, replaced by a fully digital e-SIM. While I hold myself partly responsible, Apple bears a larger share of the blame. While transferring my data from my previous iPhone, I agreed to migrate my phone number, only to find my new iPhone fully connected within minutes, rendering my old phone’s mobile signal useless and my physical SIM card entirely obsolete.

I can’t claim complete ignorance on the matter. I had heard stories of friends compelled to switch to e-SIM when purchasing a US version of the iPhone 14, which lacked a SIM slot. However, iPhones sold outside the US still accommodated physical SIM cards – a detail I had intended to retain for the sake of convenience.

E-SIMs offer several advantages, such as creating additional space for larger batteries in smartphones and wearables, instant accessibility, resistance to physical damage, and contributing to waste reduction. However, the primary drawback lies in the somewhat intricate process of setting up and transferring e-SIMs, which may involve QR codes, specialized apps, or, at times, contacting your service provider. When dealing with something as personal as your phone number, integral to your online security, the perceived loss of control can be disconcerting, even though traditional SIM cards have always been subject to provider control.

However, major operators like EE, Three, Vodafone, and O2 may not necessarily welcome the rise of e-SIMs. During a trip to Japan earlier this year, I opted for a cost-effective 10GB e-SIM from Ubigi for £11.70, rather than investing in an expensive international roaming plan. Thanks to the ability to purchase and activate it before leaving the UK, I had immediate access to data upon landing. While it’s possible to obtain a local SIM card in Japan or rent a portable Wi-Fi router, the convenience of prearranging everything outweighs the hassle of dealing with it while jet-lagged after a long flight.

The latest Google Pixels and iPhones now support dual e-SIMs, allowing users to have two active phone numbers, each with its own data plan. Savvy users could potentially switch between cost-effective e-SIM plans more frequently, challenging established operators’ profitability. While the setup process remains somewhat complex in practice, a software update could simplify it or incorporate the purchase process directly into iOS or Android. Last year, Ofcom speculated that e-SIMs might encourage major tech companies like Apple, Google, and Amazon to provide mobile network services directly to users on a larger scale, surpassing even Google’s existing Fi Wireless service in the US.

While the prospect of seizing a share of the considerable earnings amassed by mobile operators may be enticing for big tech companies, it comes with its own set of challenges. Phone manufacturers benefit from mobile operators promoting their products and encouraging device upgrades. They may not desire the complexities associated with taking on mobile service provision responsibilities, even if they were to function as a Mobile Network Virtual Operator (MVNO) that doesn’t possess network infrastructure or wireless spectrum.

Exciting developments in smartphone connectivity are on the horizon. Apple recently introduced Emergency SOS, allowing users to send text messages directly to emergency services via satellite. Furthermore, Vodafone and AST SpaceMobile claimed to achieve the world’s first space-based 5G voice call between a Samsung Galaxy S22 smartphone and the BlueWalker 3 test satellite last month.

This technological feat is partially enabled by BlueWalker’s advanced phased array technology. Still, its sheer size, measuring 64 square meters, makes it the largest commercial communications array in low Earth orbit and one of the most prominent objects in the night sky, raising concerns among astronomers worldwide. AST SpaceMobile plans to launch an additional 90 satellites to expand its 5G service. Additionally, SpaceX’s contentious Starlink, led by Elon Musk, plans to offer similar services with a new iteration of its ubiquitous satellites.

Beyond exacerbating light pollution concerns, the ultimate goal is to provide comprehensive global mobile service without the need to build cell towers in sparsely inhabited regions or require everyone to purchase new devices. Currently, satellite firms are forming partnerships with established mobile operators. However, with Apple entering the arena and other major tech players keeping a watchful eye, it wouldn’t be surprising if mobile operators eventually find themselves trailing unless regulatory and political entities raise objections.

Even with cell towers in space, the need for e-SIMs or a similar technology remains unchanged. Their purpose is evident in their name: Subscriber Identity Module. These components play a crucial role in securely identifying your account to wireless networks and, assuming your account is in good standing, permitting your device to access data. Whether you’re connecting to a tower just a hundred meters away or a satellite situated a hundred miles above – or even both – it’s important to remember that there’s no such thing as a cost-free call.