Translated from Spanish. To view original article: https://www.eleconomista.com.mx/empresas/motive-esim-inclusion-dan-supervivencia-operadores-moviles-virtuales-20251010-781042.html
Physical SIM cards have been evolving since 1991: from the standard SIM to Mini‑SIM, MicroSIM, and NanoSIM. Now, SIMs are becoming digital via eSIM, which allows for easier, remote activation of a mobile line — provided your device supports the technology.
From a technical standpoint, that’s what eSIMs mean. But from a market and regulatory perspective, they are a next-generation shift in connectivity — “a revolution,” as they can help governments advance digital inclusion policies because it becomes simpler to activate a cellular line via an app, remotely, rather than distributing physical SIM cards — even in mature or urban markets.
eSIMs also create competitive pressure: thanks to remote activation, a user can more easily switch operators, making number portability more dynamic. Moreover, eSIMs reduce the costs for mobile virtual network operators (MVNOs) of manufacturing and importing physical chips, helping those operators stay competitive.
“eSIMs have begun their journey, and the trend will not stop: on the technology side they save space and energy in the phone; economically they save money for the operator; for governments, they can be used as tools for inclusion; and for the market, they already enable new business models via the Internet of Things,” said Leonardo Hiss Monteiro, sales engineer for Latin America at Motive. “For all these reasons, we’re going to see their use grow, putting an end to more than 30 years of the physical‑SIM era — that’s why it’s a revolution, a next generation in connectivity.”
Motive is a tech company focused on device management solutions and services for fixed broadband, mobile, and IoT providers, among other sectors. Though Motive may not be well known to the mass public, its services are used by various companies across the Americas, which is evident from Motive’s sizable presence at Brazil’s Futurecom telecommunications forum.
“Traditional eSIMs have completed a cycle,” said Hiss Monteiro. “To explain how eSIMs can support MVNOs: they used to have to forecast how many physical chips they would sell in four months and base their cost and sales plan on that. If it didn’t work out, there was a financial impact. With eSIMs, the business model makes more sense, and it’s easier to deploy services even where stronger competitors already exist. This helps level the playing field for all operators in a market.”
eSIMs have also evolved as a connectivity alternative for travelers. Their success in that niche has drawn scrutiny from telecom regulators, especially in relation to unlimited internet packages.
In Brazil, the national telecom agency Anatel has warned that digital SIMs have been disrupting the market, and has signaled that eSIM service providers may need to hold a virtual mobile operator license. In Mexico, under its present regulatory setup, the Federal Telecommunications Institute has decided that eSIM providers do not necessarily require a license — but that could change, as Mexico redefines its legal framework and the future Communications Regulatory Commission is likely to pay closer attention to eSIMs.
What’s happening in Brazil and Mexico serves as a warning to companies like Airalo and Holafly. “This is a transformation for an entire sector, not just for users’ phones — and it will happen in Mexico as in Brazil,” said Hiss Monteiro.
The eSIM supply market was valued at USD 1.46 billion in 2024 and is projected to reach about USD 6.29 billion, according to Fortune Business Insights. “The market is ready for eSIMs to become ubiquitous, and operators should seize their potential. While the adoption of eSIM technology in the consumer market poses challenges for operators, its advance is inevitable, and they should explore how to maximize its potential,” adds a report from Analysys Mason, cited alongside Motive’s comments.
Various consulting firms estimate that 9 million devices in Mexico will use eSIMs in 2025. Though that represents less than 10 % of all mobile phones in Mexico this year, eSIM adoption is still in its early stages. For example, AT&T is increasingly promoting eSIMs in its service packages.
“In 2024, we were the first operator in Latin America to implement a new process for acquiring an eSIM, where you didn’t need to scan a QR code — instead our system sends a system notification to the device being purchased, activating the eSIM with the customer’s selected plan,” AT&T stated. “User experience is no longer so complicated with physical chips — you no longer have to go to a store; everything can be done remotely. eSIMs will also simplify device mobility between countries, easing roaming issues, and new applications for IoT will follow. So this is a transformation of connectivity,” said Hiss Monteiro of Motive.