The Chief Executive Officer of CEO of eSIM Plus, Dina Tsybulskaya, has blamed the high cost of eSIM-compatible phones for the slow adoption of the technology in Nigeria.
Tsybulskaya, whose company powers the service for Nigerian telecom operators also blamed the development on the process of activating SIMs for foreigners coming into the country, which she described as cumbersome.
Nairametrics recalls that MTN and 9mobile have launched eSIM in Nigeria as far back as 2020. Airtel Nigeria joined the train to offer e-SIM service in January last year. However, the service has been less pronounced in the country.
The obstacles
Speaking in an exclusive interview with Nairametrics, the CEO of eSIM Plus, a global tech firm providing international virtual phone number and mobile data services, said:
- “The primary challenge impeding the swift adoption of eSIM technology in Nigeria has been the relatively elevated cost of eSIM-compatible devices. However, as the retail prices of these devices decrease, we anticipate a corresponding acceleration in eSIM market penetration.
- “Another factor is the price level for mobile internet. The Nigerian telecommunications landscape is competitively priced when it comes to local mobile internet services. Yet, roaming charges within Nigeria and for those travelling from Nigeria to other countries are among the highest globally. It represents a significant financial burden to international visitors and Nigerians travelling abroad.
- “Moreover, the process of activating a local SIM card in Nigeria can be particularly challenging for foreigners. We already are well-equipped to overcome these challenges in the interest of our users. Still more cooperation.”
Opportunities
Tsybulskaya, however, noted that there are huge opportunities for eSIM growth in Nigeria despite the challenges.
- “Considering that Nigeria’s burgeoning economy is a beacon for international investment, there remain several opportunities within the telecom industry, and this market is of strategic importance for us at eSIM Plus.
- “We also recognize the potential benefits of forging partnerships with local Nigerian and pan-African wholesale providers which can yield further cost savings for international visitors using mobile internet services in Nigeria, as well as outbound Nigerian travellers seeking roam-like-home solutions abroad,” she said.
According to Tsybulskaya, the global eSIM market is expected to touch $16.3 billion by 2027. She added that in 2022, eSIM-capable device shipments grew 11% to reach 424 million units, and by 2030, an estimated 80% of smartphones are projected to function with eSims.
Apple’s recent move to roll out eSIMs on all its new releases is also expected to push other manufacturers as well to follow a hardware-driven approach.
What you should know
eSIM or embedded SIM) is a digital SIM that enables customers to access the same functionality as someone using a physical SIM.
The eSIM journey in Nigeria started in 2020 with the Nigerian Communications Commission (NCC) approving MTN and 9mobile to commence a trial of the technology. The trial was to run for one year and it involved testing 5,000 e-SIMs by the two networks, subject to compliance with some regulatory conditions.
The two operators have since fully launched the service, which allows their customers with compatible phones to do away with physical SIMs. Airtel also launched the service in January 2023.
