Now its digital incarnation, known as embedded SIM or simply eSIM, is gaining popularity in Malaysia. With an eSIM, a smartphone user no longer has to purchase the physical version to gain access to a mobile network service. All he has to do is register for a line through the eSIM app.
Adoption of the eSIM is expected to record a compound annual growth rate of 30% in the next five years.
For 10T Tech CEO Fredric Liljeströem, this is good news. “The growth rate projections for Malaysia is about the same as that of its regional neighbours,” he told FMT Business.
Citing data from Counterpoint Research, he said Southeast Asia accounts for roughly 6% to 7% of the global consumer eSIM market. “Thailand, Vietnam, and Indonesia are the biggest markets for eSIM-based smartphones in the region,” he said.
Liljeströem expressed confidence that the technology will replace physical SIM cards in smartphones within the next five years.
The eSIM offers greater convenience to users, especially when used alongside multiple international mobile subscriber identities (Multi-IMSI), a technology that enables users to automatically gain access to the most optimised and affordable mobile networks while travelling abroad.
With eSIM and Multi-IMSI technology, users will no longer have to worry about data plans, enabling them to travel hassle-free.
Even for regular users who do not travel abroad often, there are advantages to using the eSIM. “For starters, it offers flexibility over data and network plans,” Liljeströem said.
“That means you can have multiple eSIMs in your phone for multiple purposes,” he added.
Liljeströem said all the major carriers and mobile virtual network operators in Malaysia have been offering eSIM options for three years now.
But with the deployment of 5G technology more recently, he expects the adoption of eSIM technology to pick up pace. “The potential for the technology to thrive has risen significantly,” he pointed out.
Service provider XOX said it was actively encouraging users to switch to eSIM through its marketing strategy. It said users can set up their eSIM capability within 10 minutes.
“This is done entirely online. There is no need to visit a store,” a spokesman for XOX told FMT Business.
He expressed hope that smartphone manufacturers would start incorporating the eSIM capability into their devices so that it would become a global standard.