Enterprise demand for eSIM-based mobile connectivity is on the rise: Not only does the  eSIM simplify SIM card logistics for large companies – it also makes it easier for enterprises to switch providers: A kind of flexibility that MNOs do not like. Reduced switching barriers equal increased price competition that leads to lower revenues. However, refusing to offer eSIM-based contracts is not a viable option. More and more Enterprise clients make eSIM a requirement in their tenders, leaving MNOs in a dilemma.

“To address this challenge, MNOs have to further extend their Enterprise offerings beyond connectivity.” says Axel Meiling, Partner at Digital Oxygen. “In search of a new Enterprise strategy, operators should first take a step back and understand where Enterprise clients are struggling.”

Customers’ pain points are indeed manifold. Connectivity-, device-, and expense management are painful activities for different Enterprise roles. Involved employees must switch between various non-integrated systems for their daily tasks – quite some effort as current software only offers low levels of automation.

“What enterprises need is a fully integrated connectivity-, device-, and expense management.” explains Meiling. “The eSIM is the perfect enabler for such a Unified Enterprise Connectivity (UEC) solution as it supports fully digital connectivity- and device management.”

A UEC offering might solve the eSIM dilemma – simply by making the MNO less dependent on the connectivity revenue itself. Even if Enterprise clients switch their connectivity provider, they won’t integrate another UEC solution.

“There is a strong first-mover advantage for any MNO that provides a UEC solution due to the deep integration it requires. Some operators are aware of that and are already taking the first steps towards becoming a solution provider. It will be interesting to see who will be the first to come up with a comprehensive solution to escape the eSIM dilemma.” concludes Meiling.

The discussion paper is available for download at: www.digital-oxygen.com/publications.