Electronic chip challenges telecoms leaders

The article discusses the threat posed by eSIM technology to traditional telecom companies, especially in the travel market. It highlights how eSIMs enable users to easily purchase local or regional data packages at lower costs, replacing reliance on expensive roaming services. The global number of eSIM travel cards is expected to increase from around 102 million in 2025 to approximately 134 million in 2026, with the market projected to grow to over 3.2 billion pounds by 2030. This shift threatens roaming revenues, which account for 3-5% of telecom companies' profits. Electronic SIM providers can use local networks to offer direct services, reducing dependence on traditional network operators and transforming the relationship between operators and customers. To compete effectively in this rapidly growing sector, telecom companies need to develop flexible packages and specialized eSIM services to maintain their market share.

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