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What is an eSIM and how does it work?

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What is an eSIM and how does it work?

By TECHBOOK | Jun 22, 2023 10:55 am

Apple was the first manufacturer to do away with the SIM card slot in its smartphones in the USA in 2022. All models from the iPhone 14 can therefore only be operated there with an eSIM. But what is actually the difference to the normal SIM card, which mobile network operators support the technology and how do users benefit from it?

eSIM is the abbreviation for “embedded SIM” – i.e. a built-in SIM. It was presented for the first time by Samsung at the IFA 2015. This is a chip that is firmly integrated into the device – a so-called built-in subscriber identity module – that cannot be exchanged but has to be activated by the mobile network operator. This makes the classic SIM card superfluous, which has a number of advantages for users and mobile phone providers.

eSIM is catching on

Google was the first manufacturer to install an eSIM in its Pixel 2 and 2 XL smartphones. Apple first used eSIM in the Apple Watch 3 to enable phone calls with the smart watch without an iPhone. The first iPhones to feature the technology were the Xs and Xs Max, as well as the iPhone Xr.

Almost all high-end smartphones now have the option of doing without a physical SIM card and only using eSIM. In the USA, the use of eSIM is now so common that Apple has even taken the step of no longer installing a SIM slot in the iPhone 14. In Germany, however, the current iPhones can still be operated with both nano-SIM and eSIM. But what do users get out of it and how does it all work?

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What are the advantages of the eSIM?

Suppose a micro SIM card is used in the old smartphone. If you buy a new smartphone, it may then only work with a nano SIM card. If the mobile phone contract continues, you must first order a new SIM card from the mobile phone provider before you can use the device accordingly. For this reason, many providers started sending SIM cards in different sizes years ago. Users then only have to press the card that is right for them out of the pre-punched plastic card.

With the eSIM, there is no question of the right SIM size, because the mobile phone provider can access the integrated SIM chip and activate the booked tariff on it. This eliminates the hassle of handling different SIM cards. The eSIM also makes it easier to use multiple mobile phone contracts with one smartphone. This is particularly helpful if, for example, you use a different tariff privately than professionally. This is also possible with a dual SIM smartphone, but with an eSIM it is even possible to use more than two contracts with one smartphone. The only limiting factor here is the size of the memory.

Since the eSIM cannot be exchanged but activated by the mobile network provider, a general provider change is much less complicated, since you do not have to wait for a new physical card. Instead, you simply enter a new activation code. Ideally, this should be possible just a few minutes to hours after signing the contract. This is especially useful if you travel abroad a lot. In this way, you can quickly switch providers and avoid high roaming charges, because multiple profiles can be stored on one eSIM at the same time.

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Also read: Apple Watch can only be used with selected eSIMs after the update

Disadvantages of the eSIM

As always, the advantages are offset by a few disadvantages. Users can no longer simply buy a new SIM card and insert it into the device. Every time you change tariffs or telephone numbers, you have to contact your mobile phone provider. The latter then has to reprogram the eSIM – either with new tariff options or the new phone number. This eSIM support means a certain effort for the provider, which costs. The eSIM is therefore often not yet offered by the cheap mobile phone discounters with prepaid offers. Instead, they continue to rely on the classic plastic SIM card.

How do you activate an eSIM?

Activating an eSIM is very easy, but works slightly differently from provider to provider. With many providers, this works directly via a smartphone app or via the online customer portal. The provider sends the customer a QR code, which he then has to scan with his smartphone. A card with the QR code is often included with the contract documents. In some cases, an activation code is required, which arrives digitally or – if that is not possible – by post.

Thanks to the eSIM, mobile phone providers no longer have to do the work they previously had to do with SIM cards. After all, they also had to buy, program, send and document them. Instead, they can use software to rewrite the contracts with their customers. The new contract is then available in a few minutes. In addition, reading the data from a SIM card is quite error-prone. With the eSIM, the corresponding mechanisms no longer have to be installed in the smartphone, which saves space in the housing. Ultimately, of course, it is also more environmentally friendly if you do without the plastic cards that are in circulation by the millions.

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Which providers offer the embedded SIM?

As so often, the introduction of the eSIM in Germany was rather bumpy. In the meantime, however, a whole range of providers have a corresponding option. In addition to the major operators Telekom, Vodafone and O2, which have been offering the eSIM since the end of 2018, these include 1&1, mobilcom-debitel, Fraenk, the Drillisch Group, Congstar, Edeka Smart and sipgate. However, a few of the providers only issue eSIM as an additional SIM card for the contract, so that additional costs arise. However, the eSIM is still not available from some large mobile phone discounters such as Aldi Talk or Lidl Connect even in mid-2023.

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