Travel eSIMs, a transformative shift in global connectivity

By Alberto Carro Melero.

The advent of travel eSIMs is transforming travel connectivity by providing cost-effective and versatile options. With the ability to switch between network providers without the need for physical SIM cards, eSIMs facilitate multiple connectivity plans and effortless access. As awareness and usage increase, travel eSIMs will greatly lower travel connectivity expenses and expand consumer choices.

According to Kaleido Intelligence, retail spending on travel eSIMs will grow by 500% to $10 billion by 2028. These figures position travel eSIM vendors as key players in the international connectivity business, offering alternative solutions to retail roaming propositions.

Travel eSIM providers are disrupting the consumer segment by offering competitive retail propositions to travelers, because ultimately our customers need affordable connectivity whether they are at home or travelling abroad. There are several other factors behind the growth of travel eSIM players:

• eSIM capability is already penetrating mid-tier devices, and Apple is fully embracing the eSIM standard, as are several other premium OEMs (Original Equipment Manufacturers).
• Travel is booming. Spain, for example, is expected to receive 95 million international travellers in 2024, up 10% year-on-year and significantly higher than the 2019 figure.
• Awareness of travel eSIM solutions is partly due to robust digital marketing campaigns launched by several travel eSIM vendors.

“Travel eSIM providers are shaking up the consumer segment with competitive retail offers for travelers. Our customers need affordable connectivity, whether at home or abroad. Telefónica Global Solutions can help you reconnect with your roamers.”

_{Alberto Carro Melero}

_{Head of Marketing Intelligence & B2B Telefónica Global Solutions.}

From Telefónica’s point of view, as a connectivity provider, we are in the best position to meet our customers’ needs and at the same time bring additional value to this new international connectivity solution.

Through roaming retail propositions, Telefónica’s subsidiaries can offer outstanding services that allow customers to keep their phone number and have access to unique services in terms of quality of service, coverage and network technology.

Telefónica is also very well positioned in the travel eSIM ecosystem. Here, Telefónica Global Solutions (TGS) plays a very important role in capturing the added value generated by the travel eSIM market:

• TGS, through its Global Connect Hub, provides Travel eSIM vendors with connectivity for their eSIM data/voice/SMS packages, using multiple IMSI donors (from Telefónica Group and partner networks) to ensure global reach and competitive roaming rates.
• Additionally, TGS offers a management platform for web/var/www/vhosts/globalsolutions.telefonica.com/httpdocss similar to a generic Shopify. This solution matches perfectly for the needs of B2B and B2C clients.
• And at the wholesale roaming level, we capture the added value generated by our roaming partners’ Travel eSIM solutions in the Telefonica´s footprint.

Alberto Carro Melero
Head of Marketing Intelligence & B2B Telefónica Global Solutions.