Entitlement servers allow over-the-air configuration of device settings – empowering smooth management of mobile networks for MNOs and MVNOs. As the number of user connections grows globally, being positioned to reach subscribers with eSIM provisioning and connectivity may become increasingly vital for organisational competitiveness.
According to Counterpoint, eSIM devices are set to grow to six billion in 2025 from one billion in 2020 with smartwatches (connected via an entitlement server) among the segments to have seen the highest adoptions for varied use-cases, from health monitoring and safety tracking to making them standalone companion devices.
Entitlement servers: Business value and impact for MNOs
Beyond traditional connectivity services, MNOs can leverage entitlement platforms to help them expand their organisations into providing service for emerging technologies such as wearables and internet of things (IoT) devices. According to research from Markets and Markets, subscribers are likely to have an average of four connected devices each by 2023.
Many subscribers have more than one connected device, providing market potential beyond the smartphone:
1. Increase subscriptions and attract companion device upselling
Companion devices represent a fast-growth industry with the rising popularity of Apple Watch, Samsung Gear, Huawei Watch, and other smartwatches and companion devices. MNOs can attract subscribers by providing seamless connectivity across all of their devices.
2. Increase average revenue per user (ARPU) with multi-SIM
By simplifying and enhancing the user experience, multi-SIM helps MNOs capture higher ARPU and reduce subscriber churn. Giving users multiple SIM cards increases revenue per user for each device by approximately 30% and the ability to virtualise this service with eSIM instead of multiple physical cards provides a more convenient and flexible service which again builds subscriber loyalty and entices greater usage across all connected devices.
3. Increase quality of service (QoS) with next-gen capabilities
New, enhanced communication capabilities can often help deliver a service that exceeds subscriber expectations. Improving QoS and user loyalty is critical to the network provider and features such as Voice-Over-LTE (Vo-LTE), Rich Communication Services, can achieve just this. Vo-LTE is bringing clearer, higher-quality sound to voice calls, while Rich Communication Services represents a significant improvement over traditional SMS messaging – both technologies can be introduced to your subscribers via entitlement server deployment.
In some use cases, subscriber engagement may be as much as 20 times higher with these next-generation options, according to Markets and Markets. MNOs can expand their markets, reach new customers, and grow customer lifetime value (CLV).
Opportunity through a single platform
With a growing number of new devices, ease-of-use for the subscriber and ease-of-management for the MNO become paramount. Entitlement simplifies device management, provides opportunities for building revenues and enriching the experience for the subscriber. With an entitlement service, network providers are in control of the experience – providing ways for them to strategically build and retain their customer base.