Breakage and eSIM: A Match Made in Telco Heaven

The rise of eSIM technology has transformed how we think about connectivity and customer convenience and helps telco’s stay ahead. When paired with breakage—revenue from unused prepaid services—eSIMs can significantly increase the margin offered to resellers.

What is Breakage?

Breakage is the revenue earnt from prepaid data services that customers don't use. Traditionally, breakage has been an attractive source of revenue for telecom operators.

The Power of eSIM Technology

eSIMs (embedded SIMs) are embedded directly into devices, allowing users to switch carriers or activate new plans remotely and instantly. This flexibility and convenience make eSIMs a game-changer for the industry. This flexibility and convenience make eSIMs a game-changer for the industry. Here are some key benefits of eSIM technology:

Instant Activation: Plans can be activatedimmediately, eliminating the wait time associated with traditional SIM cards.

Space Efficiency: eSIMs free up physical space indevices, which can be utilised for other technological advancements.

Seamless Switching: Users can easily switch carrierswithout the need for a physical SIM card, providing unparalleled flexibility.

Enhanced Security: eSIMs are harder to remove andreplace, offering better protection against theft and fraud.

Environmental Impact: Reducing the production anddisposal of physical SIM cards contributes to environmental sustainability.

The Synergy Between eSIM and Breakage

Customer Convenience: eSIMs make it easy forcustomers to manage and purchase new plans, increasing the likelihood of unusedservices and, thus, breakage.

Higher Adoption: The ease of switching and activatingplans with eSIM technology can lead to higher adoption rates of prepaidservices, boosting potential breakage revenue.

Cost Savings: eSIMs reduce the need for physical SIMcards, leading to cost savings that enhance profitability.

Wholesale Relationships vs. Predefined Packages

As an eSIM reseller, it’s crucial to understand the benefitsof a wholesale relationship versus purchasing predefined packages fromconnectivity aggregators. While many connectivity aggregators may offer whatseems like a low per GB rate, this is often an effective rate based on bulkpurchasing. This means you might not benefit from the effective rate unless youbuy in large quantities. In contrast, a wholesale model allows for moreflexibility and better margin control, ensuring you maximise the benefits frombreakage and eSIM technology.

At smartroam, we forge strategic partnerships to unlock newgrowth and revenue avenues. By integrating our advanced, flexible, and scalableeSIM solutions, telecom operators can profit on breakage potential whileenhancing their service offerings. We focus on mutual growth and valuecreation, helping resellers increase breakage revenue and improve customersatisfaction. Partnering with smartroam means unlocking new revenue streamsbeyond traditional services, such as international roaming and temporary datapackages, catering to the diverse needs of mobile network operators andenterprises alike. Talk to a member of our team today to find out more.

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