Vodafone rocks eSIMs to tempt concertgoers with a free ride on its network

Embedded SIMs (eSIMs) open up new ways for customers to access connectivity. The technology, which is already embedded in many devices, relies on a programmable SIM and can hold up to eight virtual SIMs at a time. It can allow customers to access cheaper travel packages, or to try a competitor's network for free.

Last week, Vodafone UK offered visitors of the Boardmasters festival a seven-day free trial featuring 50GB of mobile data, 500 minutes and 500 texts. And the operator has already offered the same deal to festivalgoers at Glastonbury, British Summer Time Hyde Park and Kendal Calling, as well as during Wimbledon, it has confirmed to Light Reading.

The choice makes sense, given Vodafone is the official connectivity partner at all these events. During Glastonbury, which drew over 200,000 visitors, 15,000 people ordered an eSIM from the company. 

For now, Vodafone has started small by offering the trial only to visitors onsite and deploying geofencing to prevent anyone else from taking advantage. Once active, however, participants will continue to have access to its network for the full seven days countrywide, the operator has confirmed.

It may be worth pointing out that the offer isn't free for the operator. Earlier this year, Kester Mann, director of consumer and connectivity at CCS Insight, noted it will have to pay its eSIM provider a transaction charge for every person who signs up, on top of offering free airtime.

Festival first?

But Vodafone isn't ruling out expanding the initiative further. Asked if it was considering any future trials or targeting the broader public, the operator said the following in an emailed statement to Light Reading: "We're thrilled with the success of our initial eSIM trials this summer and the positive feedback we've received. While we don't have specific dates to announce just yet, we're always looking at opportunities for more people to enjoy great coverage on The Nation’s Network." 

In the UK, Vodafone is awaiting the decision of the Competition and Market Authority (CMA) as to whether it will approve its proposed merger with Three UK. Both operators have repeatedly tried to make the case that they need to join forces to remain competitive in the market, with Vodafone CEO Margherita Della Valle arguing in May that both have low market shares and low returns.

Using eSIMs to actively lure away customers from competition appears to be a new feature in the UK market, and Mann also notes this may be the first time an operator has used a large-scale event to offer a network trial using eSIM. 

The offer isn't, however, entirely unprecedented. US operators have already offered free network trials via eSIM to the broader public. T-Mobile was the first to come up with such an initiative in 2021 and other operators followed suit. 

As Light Reading has previously written, telcos in Europe may have quietly started supporting eSIM, but many have previously appeared reluctant to fully embrace the concept. The physical SIM has largely remained the default option, with hurdles like store visits or codes sent by post often standing in the way of those wishing to switch to eSIM. 

This somewhat contrasts with the US, where eSIM is the only option for customers with iPhone 14 or newer as Apple stopped including the physical SIM slot in models sold in the US from 2022 onwards.

Travel eSIMs on the rise

Rumors are circulating that Apple could now replicate the move outside of its home market, having already done so with iPads. Still, previous stories suggesting it would remove the SIM slot from iPhone 15 devices sold in Europe did not come true upon its launch last year.

Another thing that could make customers more accustomed to eSIMs is their apparent resurgence for travel. Juniper Research said in April the number of travel eSIM users worldwide would grow from 40 million this year to over 215 million by 2028.

Many companies are now marketing travel eSIMs, with some big names that are not usually associated with telecommunications joining in the fun.

The group behind low-cost airline EasyJet launched EasySim last year to offer prepaid data bundles to travelers. Fintech company Revolut, which started as a mobile wallet allowing travelers to dodge unfavorable exchange rates offered by banks, started offering roaming eSIM services to its UK and other European customers earlier this year. NordVPN has, meanwhile, launched travel eSIMs under the brand Saily.

Together with other eSIM options like Airalo and Holafly, these travel packages threaten operators' income from roaming. Juniper Research cautions telcos could lose out on $11 billion a year in the future because of travel eSIMs, recommending them to develop their own travel solutions.

Some established telcos have already entered this space. Orange offers travel eSIMs for visitors to Europe, as does fellow French operator Bouygues. Telefónica, meanwhile, invested in Airalo last year. 

Still, with 1GB of data costing an average of $8.57 when roaming, compared to $5.50 with an eSIM, according to Juniper Research, this doesn't look like a big win for traditional operators.

Growing support

Meanwhile, the number of devices supporting eSIMs is growing. According to the GSMA, 2023 was the strongest year on record in terms of eSIM device and service launches, which stood at 231.

Light Reading reached out to European operators earlier this year to gauge their views on the challenges and opportunities presented by this growth in eSIM device support. While the technology has often been said to pose risks including higher churn rate and the possibility of big tech acting as MVNOs, their replies expressed optimism about the technology.

In its emailed statement for Light Reading, DT said "We don't see a risk especially not in higher churn rates: in Q1 2024 we reported a churn rate of 0.8%, this is best in class in Germany," while also highlighting its participation in the standardization process. 

Orange also appeared to fully embrace eSIMs. In an emailed statement, its executive vice president for devices and partnership, Philippe Lucas, said "Orange is fully supportive of eSIM deployment and continues to play a pivotal role in advancing the eSIM standardization at the GSMA."

Interestingly, he went on to say that the "eSIM serves as a retention tool in the B2B sector, allowing us to offer improved fleet management solutions." The operator has, meanwhile, not observed "any significant churn impact associated with eSIM adoption. This is attributed to the fact that customers remain under contract engagement regardless of the SIM format, highlighting the seamless transition enabled by eSIM technology. In addition, tech-savvy users have embraced eSIM for its dual-SIM functionality for professional/personal use or travel purposes," Lucas said.

Alex Cornett, mobile category director at EE, meanwhile said in an emailed statement that "eSIM creates an excellent opportunity for operators, like us, to drive greater levels of convenience for our customers, particularly those looking for greater flexibility."

These views echo findings from CCS Insight, which in June said operators have become more accepting of the technology, and are becoming optimistic about the opportunities it can open up.