If you’re in IoT, you know the real challenge isn’t connecting a device—it’s managing those connections at scale.
SIMs used to be simple. You popped one in, it worked, and that was it. But not anymore.
Now, we’re talking about global deployments. Thousands of devices. Constant changes. Carrier swaps. Compliance. Scalability.
That’s where eSIM for IoT changes the game.
But it’s not just about switching to eSIM. It’s about choosing the right eSIM strategy—so you don’t lock yourself into a bad deal with an MVNO that boxes you in for years.
This article breaks that down, step by step.
What Is eSIM for IoT and Why Should You Care?
Let’s keep it simple.
eSIM for IoT is an embedded SIM that’s soldered directly onto the device. It doesn’t need to be physically swapped out to change networks. Instead, you update it remotely.
For IoT devices—especially those deployed in remote areas or across different countries—that’s a big deal.
Here’s what makes this even more urgent: only 33% of shipped cellular IoT modules were eSIM-capable in Q2 2024.That means two-thirds of the industry is still exposed to physical SIM limitations. Huge opportunity, but also a red flag if you’re making decisions based on outdated tech.
You’re not just adding convenience here. You’re adding long-term flexibility.
And yet, here’s where most businesses mess up:
They pick an eSIM provider that locks them into a specific network or management platform. And they don’t realize it until it’s too late.
The MVNO Lock-In Problem No One Talks About
Some MVNOs are great. They give you decent pricing and global reach.
But here’s what they don’t tell you upfront.
Once you use their eSIM for IoT, they might:
- Lock the profile
- Force you into 3 to 5-year roaming agreements
- Penalize you if you want to switch carriers
- Control the management platform so you can’t provision new profiles without them
It’s the digital version of getting stuck with the wrong data plan—except it can cost you millions when scaled.
You think you’re getting freedom. What you’re really getting is a walled garden.
And here’s a number you should care about: In 2023, 27 IoT-focused MVNOs controlled 25% of global IoT connections (outside China).
That’s a quarter of the market already tied up in infrastructure they don’t own—and can’t easily exit from.
How to Use eSIM for IoT Without Getting Trapped?
There are two paths.
Path A: Go with a bundled MVNO provider. They’ll offer you hardware, a management portal, connectivity, and maybe even dashboards. It’ll look turnkey. But you’re at their mercy.
Path B: You own the eSIM infrastructure. You choose a provider that supports open standards like GSMA SGP.32 and eUICC. You manage profiles. You switch carriers when needed. You stay in control.
Path B requires more upfront work. But in the long run? You stay flexible, avoid overpaying, and reduce your reliance on a single provider.
Here’s how you do it right.
Step 1: Start With the eSIM Architecture
Before you look at providers, know what architecture you need.
If your devices are static and only operate in one country, you might not need global roaming or complex profile switching.
But if your devices move, or if you’re deploying internationally, you need:
- Remote SIM provisioning
- Carrier-agnostic support
- OTA (Over-the-Air) updates
- Profile download capability
- Support for fallback profiles
This is where eSIM architecture matters.
Choose an eSIM for IoT platform that supports these features and complies with GSMA SGP.32 or SGP.02, depending on your use case.
Also, make sure your eSIM chip supports these standards. Not all do.
Step 2: Use Independent eSIM Management
One mistake I see again and again?
Companies rely on MVNO-managed eSIM platforms. That’s where the lock-in begins.
Instead, go with independent eSIM management platforms. These give you:
- Access to multiple carrier profiles
- Ability to switch providers remotely
- Full control over provisioning logic
- No contract traps or hidden restrictions
And here’s a compelling stat: There was a 148% growth in eSIM profile downloads for IoT/M2M in 2022 alone.
That means more providers are offering OTA switching—and more businesses are demanding the flexibility to manage it themselves.
When you own the management layer, you’re not at the mercy of a single vendor. That’s power.
Step 3: Choose Hardware That Supports eUICC
A lot of people get excited about eSIM, but they forget to check device compatibility.
Your device needs to support eUICC (Embedded Universal Integrated Circuit Card). That’s the standard that allows you to store multiple carrier profiles and switch between them remotely.
No eUICC support = no profile switching = stuck with your first provider.
Whether you’re building your own hardware or buying off-the-shelf, make sure eSIM for IoT compatibility includes full eUICC support.
And while you’re at it, test everything. OTA updates, fallback behaviors, switching delays, SIM freeze issues—all of it.
Step 4: Beware of Hidden Costs in MVNO Contracts
Let’s say your MVNO offers global connectivity at a great rate.
Looks great, right?
What they don’t mention is the penalty fees for switching carriers. Or the fact that their SIM profiles expire if you go inactive. Or that your IoT SIM will still be tied to them even after contract termination.
Long-term contracts often carry penalties that aren’t obvious at signup. And infrastructure-level changes later? Expensive. Especially when you need to replace or reconfigure SIMs in already deployed devices.
It’s not just about price. It’s about control.
Step 5: Plan for Scale From Day One
Your eSIM for IoT strategy needs to scale from 10 devices to 10,000.
Ask yourself:
- Can you bulk provision?
- Can you automate profile swaps?
- Can you integrate APIs with your own backend?
- Can you manage deployments across 10 countries?
You need an eSIM solution that works at scale. That includes security, SIM lifecycle management, carrier fallback, and compliance logging.
Also, make sure your hardware supports consistent OTA behavior. With devices like eSIM module Arduino, you’ll want to test how profile downloads and fallback work in the real world.
Never assume. Always test.
What About Consumer IoT or Travel Use Cases?
If you’re deploying eSIMs in consumer-facing devices like wearables or smart tags, flexibility is even more important.
Think Nomad eSIM models. These serve users on-demand, offering data packages across countries without swapping SIMs.
That use case requires:
- Carrier-neutral provisioning
- Automated onboarding
- Low latency switching
- Transparent billing
Even here, MVNO lock-in can hurt you. If you can’t shift your infrastructure quickly to support new markets, you lose time and money.
What About Security?
Every eSIM for IoT deployment should also include a secure communications layer.
Why?
Because your devices aren’t just endpoints. They’re gateways to your network. If someone hijacks a device, they can hijack your system.
That’s where VPNs come in.
When you bundle white label VPNs with your IoT deployments, you give every device a secure, encrypted tunnel. This isn’t about browsing privacy—it’s about shielding data streams from tampering and surveillance.
And when you sell eSIM solutions, bundling VPN as part of your offer helps you stand out.
You’re not just selling connectivity. You’re selling secure connectivity.
Final Thoughts: Own Your Strategy or Get Owned By It
This isn’t about features. It’s about freedom.
When your eSIM for IoT strategy is locked into a single provider, you lose control over performance, costs, and compliance. You can’t adapt fast. And you’re stuck reacting instead of growing.
But if you set it up right from the start—open standards, independent management, scalable provisioning—you build a system that works on your terms.
Want to go one step further?
PureWL lets you bundle secure, encrypted VPN access into your IoT offering. It’s fast to deploy, private-labeled, and works across devices. You focus on connectivity—we handle the protection behind it.
In the world of IoT, flexibility isn’t a nice-to-have. It’s everything.