When Apple removed the SIM card tray from its iPhone 17 in Europe, it marked a clear shift in how we connect to mobile networks.
For most consumers, the move was a simple matter of convenience. But for the IoT industry, the embedded SIM (eSIM) has the potential to be far more disruptive — transforming not just how we connect, but also how devices are manufactured, deployed, and scaled.
Few people are better placed to explain this transformation than Jacques Bonifay, CEO of Transatel.
As a long-time mobile virtual network operator (MVNO) pioneer, Bonifay has spent decades navigating the telecoms industry, building a company that now provides global connectivity for enterprises, automotive manufacturers, and consumers through its Ubigi brand.
Speaking to IoT Insider, he argues that the age of the physical SIM is coming to an end—and that eSIM will unlock the next wave of IoT innovation.
At its simplest, an eSIM is the digital version of the tiny plastic card that has powered mobile phones since the 1990s. Instead of shipping and inserting a physical chip, credentials are downloaded directly to a secure embedded module in the device. This small change has major consequences.
“Everything is digitalised,” Bonifay explains. “No more logistics, no more packaging, no waiting for delivery. It reduces cost, improves efficiency, and even has an environmental benefit.”
Manufacturers have been quick to see the advantages of such a move. By removing the SIM tray, smartphone makers can build sleeker, more durable devices, with better waterproofing, longer battery life, and more internal space for batteries or sensors.
Apple has been the first to act, eliminating the physical SIM in US iPhones with the launch of the iPhone 14 in 2022 in the US and extending the move to Europe this year. Other brands are following. Even China itself, once resistant to the tech, authorised eSIM-enabled smartphones last year.
Yet, Bonifay says, mobile operators in general have been less enthusiastic.
“For telcos, eSIM makes it easier for customers to switch providers,” says Bonifay. “That’s wonderful for the consumer, but it introduces churn for operators. This resistance slowed adoption. But now, with Apple leading, the momentum is unstoppable.”
Others too have resisted the change. Some authorities, most notably the Turkish Govbernment, have actively blocked foreign eSIM downloads. Officially, such bans are justified on grounds of national security and control. Critics argue that in reality, resistance is more about conservatism and protecting local revenues than genuine risk.
While eSIM is revolutionising smartphones, its impact will extend far beyond them. Bonifay believes laptops are the next frontier.
“Imagine opening your laptop anywhere in the world and being instantly connected,” he says. “No searching for Wi-Fi, no security risks, and often better performance than hotel networks thanks to 5G.”
Wearables and medical devices are another area of rapid growth. “A medical device manufacturer doesn’t want to rely on a patient’s phone and Bluetooth. They want secure, direct connectivity,” Bonifay adds. Watches, fitness trackers, and even smart glasses are already adopting eSIM for exactly that reason.
The automotive sector is also charging ahead. Transatel provides connectivity for BMW vehicles, where eSIM enables drivers to switch between operators over the air. For carmakers, this flexibility supports global manufacturing and deployment, while for drivers it brings choice and seamless coverage.
The same applies to industrial IoT, from smart meters in remote locations to factory equipment requiring resilient, secure connectivity. “For IoT, eSIM is transformative,” says Bonifay. “It’s about scalability. No more shipping the right SIM card for the right market. One digital process works everywhere.”
If there is one persistent concern about eSIM, it is security. Some worry that removing the physical card could open devices to new vulnerabilities. Bonifay dismisses this idea.
“The security model is identical,” he explains. “Whether credentials are on a piece of plastic or embedded in a chip, the encryption and processes are the same. You can’t hack a phone through its eSIM profile. The risks are the same as before: identity theft at subscription, or backend cyberattacks.”
For Bonifay, the greater challenge has been education. “Until recently, most people didn’t know what an eSIM was. Apple changed that. Awareness is rising quickly, and that drives adoption.”
For Transatel, eSIM has already become a growth engine. Its consumer brand, Ubigi, decided in 2017 to go eSIM-only, even though the technology was still immature. Bonifay says the gamble paid off.
“Ubigi is doubling revenue annually thanks to eSIM,” he says. “Before, shipping SIM cards worldwide was a logistical nightmare. Now we can scale instantly, anywhere.”
Ubigi’s biggest market corridor today is Americans travelling to Japan, he says, followed closely by France. Interestingly, 30% of its US customers also use the service domestically, not just when travelling.
Businesses, too, are adopting Ubigi for national fleets of laptops and tablets, because its management tools make oversight easier than traditional operator models.
And looking ahead, Bonifay is confident that the days of the physical SIM are numbered.
“Within five years, physical SIMs won’t survive,” he predicts. “eSIM will be standard. Every laptop and tablet will ship with cellular, just as they all come with Wi-Fi and Bluetooth today. Cars, wearables, medical devices, industrial machinery—all of them will use eSIM.”
For Bonifay, the conclusion is clear: eSIM is not just a technical evolution, but the enabler of a new phase of connected technology. “It reduces friction, increases security, and makes IoT scalable. That’s why it’s the future.”
There’s plenty of other editorial on our sister site, Electronic Specifier! Or you can always join in the conversation by commenting below or visiting our LinkedIn page.
