eSIM is often discussed as a technology upgrade. But its impact on telecom is much broader.

As connectivity becomes more digital, software-defined and embedded into devices, eSIM is beginning to reshape how services are designed, delivered and monetized. For telecom operators, enterprises and device manufacturers, the opportunity moves beyond replacing the physical SIM and focuses on creating a more flexible connectivity model that can support new customer experiences, new business models and new ecosystems.

Domenico Convertino, SVP, Telecom Portfolio at HCLTech, sees this as a strategic shift for the industry.

“We should look at the eSIM as a strategic enabler, one of the ways the future connectivity is designed, delivered, and even monetized,” he said.

The move from hardware-driven connectivity to digital, software-defined connectivity changes what telcos can offer and how quickly they can respond to new demand. It also changes the role of the wider ecosystem. Standards, platforms, device capabilities and partnerships all need to work together if eSIM is to scale beyond isolated use cases.

Why eSIM needs an ecosystem

The value of eSIM depends on interoperability. No single company owns every part of the chain required to deploy eSIM at scale, from the secure operating system and device integration to connectivity management, platforms and customer experience.

For HCLTech, this makes ecosystem collaboration central to the opportunity. The goal is to help translate eSIM innovation into tangible transformation for customers, supporting operations, customer experience and new business models.

Convertino said standards are especially important because they create the conditions for openness.

That openness matters because eSIM adoption touches multiple stakeholders, including telcos, device manufacturers, enterprises, ecosystem partners and end users. Each depends on reliable integration and tested interoperability.

Loic Bonvarlet, Senior Vice President, Ecosystem & Marketing at Kigen, described eSIM as an ecosystem play by design.

“eSIM is an ecosystem play. You don't have a single player that really owns the entire chain of what you need to deploy an eSIM solution,” he said.

For Kigen, the secure eSIM OS is a core part of this ecosystem. But the value increases when the operating system, device, connectivity platform and partner capabilities are pre-integrated and pre-tested. That reduces downstream complexity for telcos, OEMs and ODMs, helping them scale eSIM-enabled services with greater confidence.

From connectivity feature to business enabler

eSIM also creates new business model possibilities.

In the past, many connected products were built around a physical SIM inserted manually into a device. That model limited flexibility. Changing connectivity providers or contracts could mean changing the SIM in the field, adding cost and complexity.

With eSIM, companies can select more generic hardware, load different connectivity profiles and give end users or enterprises more choice in how connectivity is activated and managed. Bonvarlet described this as a “bring your own connectivity approach,” where multiple contracts can be integrated into existing hardware without physical changes.

This is especially important in IoT, where devices may be deployed in large numbers and remain in the field for years. The ability to remotely manage connectivity, preload profiles, support secure provisioning and update devices over time becomes a business advantage, not just a technical feature.

A catalyst for digital-first connectivity

Major global events offer a clear example of how eSIM can support more flexible connectivity experiences.

The FIFA World Cup has brought millions of fans across Mexico, the US and Canada, creating a huge demand for instant, reliable connectivity. For travellers, eSIM can make it easier to activate services without relying on physical SIM cards. For operators, it can demonstrate how digital-first connectivity can support new services, new engagement models and new customer experiences at scale.

Convertino sees this as more than a short-term spike in demand. It is an opportunity for mobile operators to show how eSIM can remove past roadblocks and create new opportunities, especially in B2B.

“This is a big catalyst, a way to demonstrate how it's possible to enable new experience and new services, thanks to the to the eSIM,” he said.

Bonvarlet pointed to the rapid growth of travel eSIMs as evidence that this behavior is becoming mainstream. Juniper Research estimates that global travel eSIM revenue will increase from $1.8 billion in 2025 to $8.7 billion by 2030.

“it's not anecdotal anymore. It's really a way that people consume connectivity in the B2C world” he said.

The wider implication is that eSIM adoption in travel could help normalize a more flexible model of connectivity. For enterprises, the same ability to provision, switch and manage connectivity without changing hardware can support field operations, connected products, industrial systems and IoT deployments.

Beyond smartphones

The long-term opportunity for eSIM extends well beyond smartphones.

Convertino pointed to connected cars, smart meters, sensors and industrial systems as examples of the billions of devices that need to be managed remotely. For telcos, this creates an opportunity to play a larger role in managing connectivity across IoT and machine-to-machine environments.

The next stage could be even more significant. As Physical AI develops, intelligent systems will increasingly interact with the physical world. These systems will need secure, flexible connectivity that allows them to operate, adapt and communicate in real time.

For Convertino, this is where eSIM becomes part of the future infrastructure for intelligent systems.

Bonvarlet made a similar point from the device and OS perspective. In IoT environments such as smart metering or water leak detection, devices are often difficult to reach and may be deployed for years. That makes maintainability and security essential.

The eSIM OS provides a trust anchor between the device and the network, supporting unique device identity and helping secure data transmission. Bonvarlet highlighted that Kigen’s eSIM OS is built on global standards and certified to high security assurance schemes. It is also designed to support security updates across the device lifecycle, spanning both consumer and IoT environments. This is particularly important in critical infrastructure, where trusted data and secure connectivity are essential.

Building the next connectivity ecosystem

The future of eSIM will depend on more than device adoption and require open standards, strong security, platform integration and ecosystem collaboration.

For telcos, eSIM creates an opportunity to move beyond connectivity as a static service and toward more dynamic, digital and programmable experiences. For enterprises, it can simplify how devices are connected, managed and updated. For device manufacturers, it can reduce complexity and improve flexibility across markets and use cases.

The common thread is that eSIM value increases when the ecosystem works together.

Partnerships between companies such as HCLTech and Kigen reflect that need. By combining secure eSIM OS technology, platform capabilities, industry expertise and ecosystem integration, the industry can reduce complexity and create a more scalable foundation for digital connectivity.

As eSIM moves from smartphones to IoT, connected infrastructure and Physical AI, it is emerging as a foundational layer for the next era of telecom innovation.