What is the future of SIM cards?

Since its inception in 1991, the SIM card hasn’t changed much. While it became smaller and electronically advanced, the difference is not that remarkable. This is in contrast with other pieces of technology that were its contemporaries such as audio cassettes, video game cartridges, and so on. They all got eliminated or changed their form drastically. That fact should have a large impact on the future of SIM cards.

Earlier, the SIM card was the size of a credit card, and now it is much more miniature. However, if you look at the oldest and the latest version of the SIM card, you will find the same golden chip—only its plastic rim was greatly reduced. The chip is still more or less the same size but became more secure and faster. Nonetheless, for the past 30 and more years, it hasn’t varied as much as it was supposed to.

What does the future hold for SIM cards?

The smallest physical form factor in use now is a nano-SIM card. However, many high-end smartphones are now using embedded SIM or eSIM. It is not a card like its ancestors, but a small chip embedded, i.e., soldered onto the motherboard of the phone. The full form of eSIM is an electronic Subscriber Identity Module, and it can perform all the functions of a physical SIM card. However, it has an extra purpose to fulfill, hence it’s been touted as the future alongside 5G SIM technology. It saves precious space on high-end smartphones to make room for more sensors and integrated circuits.

Because of the eSIM, the SIM tray will be eliminated shortly, making the phone less prone to water damage. The smartphone companies program eSIMs in such a way that they could operate on multiple mobile networks. Consequently, the user can switch the carrier at their convenience. It will surely make the competition among the carriers rise to the next level in the coming future. In case the smartphone is damaged, the user can buy another one and redownload all their old data to another eSIM on the new phone. 

Benefits of eSIMs

An eSIM is a more advanced SIM technology, and, like everything, has pros and cons. Luckily, in the case of an eSIM, the multiple advantages outweigh the disadvantages. Hence, it will likely continue to dominate the industry in the future. Here are some major perks:

1. It will save space and will help make devices slimmer. Space-deprived devices like smartwatches will benefit immensely from this fact.
2. You won’t need to mail order the SIM card or visit a brick and mortar store to buy it. Registration and other SIM-related processes will be completely online or through conveniently placed self-service kiosks. Hence, you will save your precious time, energy, and money.
3. You will be able to switch your mobile network carrier as and when you want. No need to wait for long hours and days to port your number. Frequent carrier switching would be easier and quicker.
4. No risk of losing your SIM card as the eSIM is embedded in the device itself.
5. Research suggests global adoption of eSIM could reach 3.4 billion users by 2025.
6. No hassle of carrying multiple SIM cards as you can keep multiple phone numbers on the same eSIM. 
7. It will increase the performance of your phone much faster, as an eSIM is technically and technologically more advanced than a traditional SIM card.
8. Less plastic and electronic waste. This is important because there are currently more than 8 billion active SIM cards worldwide. The number of discarded plastic and electronics from SIM cards that are no longer in use is even higher. On the other hand, an eSIM has no plastic, only an electronic chip with a fairly long lifespan.

Drawbacks of eSIMs

Everything has downsides, eSIM included, regardless of how good it is. Here are some of its disadvantages:

1. It is only available in high-end smartphones for now. Therefore, getting a phone with eSIM technology it will cost you quite a bit of money.
2. The eSIM technology is still in its initial development stage at the moment. That’s why it is not widely available.
3. If your phone’s eSIM chip is damaged and irreparable, it may make your device useless for SIM-based functionality.
4. You can’t share embedded SIM cards with your friends and family in times of need like regular SIM. They are personal and bound to the device, whereas a physical SIM card is shareable.

Will the present SIM technology become obsolete soon?

As we already said, while the eSIM technology is in its initial stages, the present version of SIM cards won’t disappear anytime soon. Any technological advancement takes time to become popular and common. Therefore, eSIMs will also take their fair share of time before they become a household item. They are already employed by many devices for quite a long time such as the iPad, iWatch, or flagship Android-based smartphones. People will also need a certain period to switch to this newer version of SIM technology on a large scale.

The telecom companies have spent billions of dollars to manufacture the present-day SIM cards and the supporting infrastructure. Thus, to operate on eSIMs on a large scale, they will need to build an equivalent infrastructure, too. With everything we said so far, it is clear that embedded SIMs and similar technology are the future of SIM cards. Its penetration in the market won’t be as quick as it was with the transition from micro-SIM to nano-SIM. Speaking of nano-SIM, it is also evident that the smallest physical iteration won’t become obsolete shortly. There’s also another upcoming type, a virtual SIM card, you should look into.