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The Future of Enterprise Connectivity: How MNOs Can Solve the eSIM Dilemma

09-03-2020 05:22 PM CET | Media & Telecommunications

Press release from: Digital Oxygen

As enterprises increasingly adopt eSIM-capable phones, they start to demand eSIM support from their operators - a dilemma for MNOs: While they must support the eSIM to stay in the Enterprise game, it will inevitably lead to lower revenues as the eSIM makes switching operators a lot easier. The recent discussion paper by the Munich-based telecommunications consultancy Digital Oxygen shows how MNOs can extend their Enterprise solutions to escape this dilemma.

Munich, September 2nd 2020.
Enterprise demand for eSIM-based mobile connectivity is on the rise: Not only does the eSIM simplify SIM card logistics for large companies – it also makes it easier for enterprises to switch providers: A kind of flexibility that MNOs do not like. Reduced switching barriers equal increased price competition that leads to lower revenues. However, refusing to offer eSIM-based contracts is not a viable option. More and more Enterprise clients make eSIM a requirement in their tenders, leaving MNOs in a dilemma.

“To address this challenge, MNOs have to further extend their Enterprise offerings beyond connectivity.” says Axel Meiling, Partner at Digital Oxygen. “In search of a new Enterprise strategy, operators should first take a step back and understand where Enterprise clients are struggling.”

Customers’ pain points are indeed manifold. Connectivity-, device-, and expense management are painful activities for different Enterprise roles. Involved employees must switch between various non-integrated systems for their daily tasks – quite some effort as current software only offers low levels of automation.
“What enterprises need is a fully integrated connectivity-, device-, and expense management.” explains Meiling. “The eSIM is the perfect enabler for such a Unified Enterprise Connectivity (UEC) solution as it supports fully digital connectivity- and device management.”

A UEC offering might solve the eSIM dilemma – simply by making the MNO less dependent on the connectivity revenue itself. Even if Enterprise clients switch their connectivity provider, they won’t integrate another UEC solution.
“There is a strong first-mover advantage for any MNO that provides a UEC solution due to the deep integration it requires. Some operators are aware of that and are already taking the first steps towards becoming a solution provider. It will be interesting to see who will be the first to come up with a comprehensive solution to escape the eSIM dilemma.” concludes Meiling.

The discussion paper is available for download at: www.digital-oxygen.com/publications.

Digital Oxygen GmbH
Weißenburger Straße 25
81667 München
info@diox.de
www.digital-oxygen.de

Digital Oxygen is an owner-operated management consultancy focusing on the development and implementation of digital transformation and digital product strategies. The experienced team supports leaders of the TMT industry, medical technology companies and international start-ups on their way to a digital future. The joint success is based on a critical team and customers who see themselves as partners – who question and challenge and are open to breaking new ground.

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