Editorial - Published - October 28, 2025
To view original article: https://www.iotinsider.com/industries/communications/esim-only-a-structural-shift-operators-cant-ignore/
Apple’s iPhone 17 launch in September 2025 cements the shift to eSIM-only connectivity, writes Jeevithan Muttu, Vice President, Product & R&D at Motive. With the eSIM-exclusive iPhone Air and global expansion, physical SIMs are becoming obsolete. Apple’s RCS entitlement requirements push operators to modernise, redefining how connectivity is delivered, secured, and monetised in a fully digital ecosystem.
Apple’s iPhone 17 launch in September 2025 has done more than refresh the smartphone market. It has been confirmed that the future of mobile connectivity is eSIM-only, and that future is arriving faster than many expected.
Meanwhile, the introduction of the iPhone Air – available only with eSIM – is potentially Apple’s boldest move yet. Combined with the expansion of eSIM-only devices across Canada, Japan, Mexico, and the Gulf states, this change is no longer confined to the US.
At the same time, Apple’s requirement for entitlement servers to enable Rich Communication Services (RCS) raises the stakes further. Put simply, without a robust entitlement infrastructure, subscribers will not be able to access core messaging services.
These shifts are not incremental. They represent a structural change in how connectivity is being delivered, monetised, and secured today. For mobile operators, the question is no longer whether to adapt, but how quickly they can do so.
The practical difference eSIM-only devices make for operators
At first glance, replacing a physical SIM card with a digital profile may seem straightforward. However, in practice, it changes almost every step of the subscriber journey. Provisioning becomes entirely software-first. Instead of relying on plastic cards, packaging, and in-store swaps, profiles can be downloaded or switched instantaneously.
This reduces fulfilment costs, eliminates manual errors, and streamlines distribution. For customers, it means activation in minutes rather than hours or days, whether they are setting up a new device, changing plans, or adding a second line.
The customer experience improvements are also significant. Operators who master eSIM onboarding can offer frictionless digital journeys, driving faster conversions and lowering call-centre traffic. At the same time, eSIM provision makes it more difficult for criminals to exploit SIM-swap fraud using stolen cards, thereby improving overall security.
However, digital-first identity also brings new responsibilities. Stronger authentication and orchestration are required to validate device profiles and authorise services. This is where entitlement servers come into play. They act as the gatekeepers – the single authoritative system – that ensures subscribers can access what they are entitled to and protects operators against fraud, failed activations, or compliance breaches.
Entitlement servers as the backbone of digital transformation
Entitlement servers were once considered background utilities. That day has long since passed. Today, they are central to operators’ ability to innovate, adapt, and scale. An entitlement server is the policy and capability control point between the operator’s OSS/BSS, device manufacturers, and network functions.
It determines which features a subscriber can access, such as iMessage, RCS, VoLTE, VoWiFi, or multi-line eSIMs, and pushes the correct credentials to the device. In short, it is the ‘glue’ that makes modern connectivity work.
For operators in the midst of digital transformation, an entitlement server is more than a technical necessity. It should be treated as a product-enablement platform. The most advanced deployments enable operators to roll out services more quickly, adapt instantly to Original Equipment Manufacturer (OEM) changes, and maintain compliance across various markets.
This orchestration is especially important as connectivity extends beyond smartphones. Entitlement servers enable seamless pairing and activation of companion devices such as wearables and tablets, supporting shared numbers, eSIM transfers across devices, and even cross-platform migrations between operating systems. These are capabilities that customers now expect to work instantly and securely.
There are three main priorities here:
- Integration: Entitlement must align seamlessly with device vendor requirements to avoid fragmentation.
- Compliance: GSMA standards must be built into guarantee interoperability.
- Flexibility: Pre-built templates for common use cases accelerate time to market and reduce engineering burden.
How eSIM-only devices create new opportunities
The rise of eSIM also opens up a new commercial landscape, particularly in roaming. Until now, most travellers had two options, neither of which were particularly appealing. Pay steep roaming charges, or buy a local SIM card on arrival.
eSIM changes this overnight. Consumers can now download a short-term plan instantly – before boarding the plane, at the airport, or even mid-flight. This creates an expanding market for travel eSIMs, with initial research already forecasting rapid adoption.
For operators, this shift represents both a threat and an opportunity. Legacy roaming revenues will inevitably come under pressure as digital-first resellers undercut high-margin charges. However, the opportunity lies in building branded travel eSIMs, partnering with retailers, or bundling short-term connectivity into travel packages. Those who move quickly can capture market share and retain customer loyalty.
Dual eSIM capability deepens the disruption further. Customers can now hold multiple active profiles and switch between them for the best deal or network coverage. This puts further strain on traditional roaming, but also opens the door to upsell opportunities.
For example, operators could offer premium entitlements such as guaranteed quality of service on 5G slices, or create bundled service experiences that go beyond connectivity. What matters is differentiation: providing value that goes beyond simply being the cheapest option.
Overcoming operational and compliance challenges
The rollout of eSIM in the US serves as a cautionary tale for global operators now facing a similar transition. One of the biggest hurdles was device and OEM fragmentation. Each handset manufacturer required different provisioning flows and integrations, forcing operators to build, test, and certify across multiple models. Those without robust entitlement systems faced delays, activation failures, and very frustrated customers.
The lesson is clear: not all entitlement solutions are created equal. Operators should prioritise vendors whose platforms are GSMA-aligned, proven across multiple OEMs, and scalable to millions of concurrent activations. Certification and maturity are not optional extras; they are critical to ensuring resilience.
Compliance is another pressing challenge. As eSIM expands into new markets, the entitlement infrastructure must enforce regulatory and policy requirements while still providing a seamless user experience. This requires investment in orchestration, security, and scalability from the outset. Operators who treat entitlement as a ‘box-ticking’ exercise risk running into serious problems as eSIM adoption accelerates.
What does the future hold?
Apple’s iPhone 17 launch accelerated a trend that was largely already inevitable. Physical SIM logistics are being retired, and entitlement has become the gatekeeper for essential services. Roaming is shifting from legacy models to digital-first experiences.
The implications for operators are profound. Those who invest now in entitlement infrastructure, compliance readiness, and customer-first digital onboarding will not only meet the challenge, they will be positioned to lead. Meanwhile, those who delay may find themselves usurped by digital resellers, losing revenue and relevance.
The industry has reached a turning point. eSIM is no longer just another option; it is the foundation of subscriber management for the next decade. The question for operators is will they move fast enough to turn this structural shift into a strategic advantage.