Commercial Launch of Mobile eSIM Promotes the Accelerated Implementation of IoT eSIM

Published: 2025-10-21 Category: IoT News

Commercial Launch of Mobile eSIM Promotes the Accelerated Implementation of IoT eSIM

Synopsis

Major Chinese mobile operators have secured national eSIM mobile phone service approvals.
eSIM’s advantages over physical SIMs are driving demand especially in IoT–enabled devices.
IoT eSIM adoption is advancing, aided by mobile-phone eSIM commercial rollout and industry ecosystem development.
While mobile-phone eSIM awareness remains low, IoT eSIM shows stronger scenario suitability and faster implementation.
Technical and standards developments (e.g., new GSMA specifications) plus full-chain industry readiness are positioning IoT-eSIM for growth.

Read time: ~4 mins

The report by 36Kr (via the official WeChat account “Internet of Things Think Tank”, author: Zhao Xiaofei) states that China’s three major operators — China Telecom, China Mobile and China Unicom — have obtained approval from the Ministry of Industry and Information Technology (MIIT) to launch commercial eSIM services for mobile phones at the national level. This development signifies that large-scale deployment of embedded SIM (eSIM) technology in mobile devices has finally reached reality, with major handset manufacturers already prepared to support relevant models.

Although eSIM itself is not a new concept, its application in smartphones has been hindered by competing interests and delays over the years. The article highlights that besides smartphones, the cellular Internet-of-Things (IoT) is a key domain for eSIM deployment — and arguably one where adoption has been more rapid. In fields such as smart wearables, smart meters, connected vehicles, and industrial Internet, eSIM has already been widely used to enable network access for IoT endpoints.

Why IoT eSIM Offers Clear Value

The article outlines several advantages of eSIM over traditional physical SIM cards. As an embedded identity recognition module for cellular-connected devices, eSIM enables the elimination of the SIM-card slot, freeing up space for terminal design, improving miniaturization and heat-dissipation. Moreover, physical SIM cards with metal contacts are vulnerable in harsh environments (vibration, high humidity, salt spray) where contact faults or oxidation can lead to communication interruption. The embedded nature of eSIM greatly improves reliability in such conditions.

Additional benefits include simplified supply-chain logistics (no packaging, inventory, shipping of physical cards), and a smoother “seamless” network access experience — since there is no need for manual card replacement when switching networks, and terminal maintenance becomes easier.

From the user-perspective, while eSIM offers meaningful upgrades for mobile-phone users, the author argues that IoT eSIM is easier to implement in the short term and its significance is more apparent. For instance:

IoT devices often carry numbers or identifiers that do not serve as personal identity (unlike mobile phone numbers) — making network switching via eSIM simpler from a user-impact standpoint.
Many IoT terminals are deployed in harsh or fixed-locations (e.g., vehicle-networking, environmental monitoring, industrial equipment) and face tougher conditions than mobile phones — making eSIM’s robustness a natural fit. Also, network coverage may be less complete or predictable in such scenarios, and enabling easier network configuration or switching delivers tangible benefit.

Impact of Mobile-Phone eSIM Commercialisation on IoT eSIM

Historically, IoT eSIM commercialisation has progressed more smoothly than smartphone eSIM adoption. According to data cited, by end of 2023 IoT-eSIM connections in China had already approached ~200 million, with forecasts projecting ~2.2 billion by end of 2030 at a compound annual growth rate (CAGR) of approximately 43%.

China’s IoT eSIM deployment has roots stretching back more than five years. For example, in December 2019, China Unicom was approved for eSIM technology application in IoT fields nationwide, followed by further approvals in September 2020 for China Telecom and China Unicom. The approvals stipulated use of 13-digit IoT numbers for eSIM applications. Subsequently, in October 2020 China Mobile’s IoT business initiated an eSIM wafer procurement project covering consumer-grade and industrial-grade wafer volumes (40 million and 30 million respectively).

A key factor is that with the MIIT-approval for mobile-phone eSIM commercial trials nationwide, user awareness of eSIM is expected to rise significantly. The commercial rollout of smartphone eSIM services improves the overall industrial ecosystem, which in turn supports IoT eSIM supply-chains and adoption. The article notes that the mobile-terminal (smartphone) channel is the best medium to elevate eSIM awareness broadly; once eSIM becomes common in low-cost smartphones, the uptake in IoT devices will naturally accelerate.

The industrial ecosystem in China for eSIM — covering chip design and manufacturing, module R&D, platform services, terminal equipment (including manufacturers such as Huawei, Xiaomi, OPPO, vivo) — is now considered mature and complete. The article reports that domestic enterprises are globally competitive in chip design, module R&D meeting international standards, IoT-management platforms, and eSIM-capable smart devices.

Technological & Standards Advances Supporting eSIM Adoption

The article highlights the release of the new GSMA eSIM IoT specification SGP.32, which provides a more structured remote SIM provisioning (RSP) method tailored for IoT devices lacking user-interfaces or frequent access. The specification supports secure eUICC management, profile deployment, and lifecycle management across deployment scenarios — thereby reducing technical obstacles and improving interoperability across devices and networks.

As the standard becomes more widely adopted, the barriers to eSIM adoption (especially in IoT) — such as interoperability, complex RSP architectures, and device-management overhead — are anticipated to diminish. The article asserts that the policy impacts of eSIM are increasingly visible, and combined with product innovations from eSIM suppliers, the adoption of IoT-eSIM products is expected to accelerate. Network-technologies such as 5G, RedCap (reduced capability), and NTN (non-terrestrial networks) will further stimulate IoT-terminal coverage improvements, raising demand for eSIM in future device deployments.

In conclusion, according to the 36Kr report, the national commercial launch of mobile-phone eSIM services by China’s major operators marks a turning point that will not only increase user awareness of eSIM but also logically accelerate the implementation of IoT-eSIM across connected devices. With clear technical advantages, a prepared industrial ecosystem, and standards maturation, IoT-eSIM is poised for stronger growth. The overlap between the mobile-phone eSIM and IoT-eSIM ecosystems suggests that momentum in one domain can drive broader adoption — making this a pivotal moment for connectivity and device-ecosystem transformation.

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About China Telecom, China Mobile, and China Unicom

China Telecom, China Mobile, and China Unicom are the three largest state-owned telecommunications operators in China, jointly driving the national rollout of eSIM services under approval from the Ministry of Industry and Information Technology (MIIT). China Mobile serves more than 970 million subscribers and leads in 5G network deployment. China Telecom, with a strong broadband and cloud portfolio, focuses on IoT and edge computing integration.

China Unicom, recognized for its international collaborations and industrial IoT projects, has played a key role in early eSIM pilots and smart manufacturing connectivity. Together, the three operators are building a cohesive ecosystem for mobile and IoT eSIM applications in China. The initiative supports industries ranging from automotive and energy to logistics and smart cities, laying the foundation for future technologies such as 5G RedCap and non-terrestrial networks (NTN). Their joint efforts strengthen China’s position in global telecom innovation and set a benchmark for the commercial implementation of eSIM technology worldwide.

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