There's a China connection to why eSIMs haven't taken off in India
iPhone was stolen in the bustling Chandni Chowk market in Delhi, he smirked and told his friends to remain calm. The police were able to track the device within 30 minutes as it had an embedded SIM (eSIM) which cannot be physically removed from the phone unlike a normal SIM Card. An eSIM can be tracked even when a phone is switched off.
In another instance, an oil refinery in Assam was able to fix leakages and prevent accidents within a few seconds as several Internet of Things (IoT) devices with eSIMs sent live alerts to a centralised provisioning system.
Virtual SIMs or eSIMs offer several advantages to retail and enterprise phone users. However, the pace of adoption in India has been sluggish so far, mainly due to a Chinese government policy, executives and experts said.
While Apple offers eSIM capability in its entire iPhone range, others such as Samsung, Vivo, Oppo and Xiaomi have started enabling eSIMs in their premium flagships. But the incentive to offer it in the affordable segment is still lacking, as China, their primary market, has barred its use citing security concerns. Brands therefore cannot benefit from economies of scale as adding eSIM compatibility exclusively for all Indian phones will inflate the bill of materials (BoM) cost of devices, they said.
Telcos though are pushing smartphone brands to offer eSIM capability in the affordable segment as it will allow them to reduce costs, executives and experts said.
As of December-end, only about a tenth of all smartphones sold in India (around
