Thank you for Subscribing to Telecom Business Review Weekly Brief
Telecom Business Review | Thursday, November 03, 2022
eSIMs allow consumers to explore plans, fill out enrollment information, and download their new eSIM profile on their devices, eliminating the need to visit a store to buy a SIM card or activate a subscription.
FREMONT, CA: Mobile network operators (MNOs) are now tasked with authenticating their customers' identities in this new environment, which is most favorable for the consumer. Increasing eSIM use raises challenges about conducting know-your-customer (KYC) checks and collecting paperwork for identity verification while guaranteeing compliance with KYC and anti-money laundering (AML) rules and a seamless onboarding process. The number of connected devices supporting eSIMs is projected to expand by about 80 percent to 3.4 billion by 2025, with the consumer sector accounting for more than 90 percent of global installations.
Digital development and transformation are not restricted to the telecoms sector alone. PCs, wearable gadgets, and smartphones, among other smart devices, utilize cellular network connections to provide consumers with a seamless, always-on experience. Consequently, consumers have come to anticipate a flawless digital onboarding experience. MNOs will allow their customers to approve new devices and accounts by scanning their fingerprints or faces effortlessly. It is a behavior that practically all consumers are accustomed to performing regularly, whether to unlock their phones or initiate payments.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Due to the nature of eSIMs, users no longer need to visit a physical store to purchase their SIM cards, activate their subscriptions, or both. Instead, they may explore plans, fill in their enrollment information, and download their freshly created eSIM profile directly on their smartphone. AML and KYC procedures are in place to combat money laundering, terrorism, and other illegal acts. Specifically for MNOs, more than 150 nations require confirmation of identity to use mobile services; this also applies to eSIM devices.
With traditional brick-and-mortar stores, the KYC procedure requires the physical presence of an identity document to a store representative; this could result in high fraud rates if the store person is not adequately trained in document fraud detection. A physical KYC process is also costly and time-consuming, requiring MNOs to invest considerably in storefronts or kiosks, staffing, and personnel training. It is not always convenient for the customer to physically travel to the storefront or kiosk.
The digitalization of KYC should follow the digitization of SIMs. Combining eSIMs and an eKYC portal enables MNOs to provide consumers with a convenient digital onboarding procedure while guaranteeing compliance with AML and KYC regulations and standards about real-time fraud prevention.
More in News