For years, eSIM has been framed as a better SIM. Smaller, digital, easier to switch. But that framing is already outdated.

What we’re seeing now is something much more structural. eSIM is no longer a product you buy when you travel. It’s becoming a default capability embedded directly into devices. A feature, not a decision.

Look at what’s shipping today. Smartwatches with standalone connectivity. Tablets that don’t rely on tethering. Laptops with built-in cellular. Even early-stage experiments with connected earbuds and XR devices. The direction is clear. Devices are designed to be always connected, not occasionally connected.

And that changes everything for providers.

Because when connectivity becomes invisible, the business model shifts from one-off purchases to continuous relationships.

Always-on shift

The moment a device is always connected, user expectations reset.

There is no “buy a plan” moment anymore. No comparison page. No conscious decision. Connectivity becomes part of the product.

For OEMs and device startups, this creates both an opportunity and a risk.

The opportunity is control. You can own the entire user journey, from activation to billing to upsell. Connectivity becomes a revenue layer.

The risk is more subtle. If connectivity fails, the product fails. There is no separation.

A smartwatch that disconnects is not “having network issues”. It’s broken. The same goes for earbuds, trackers, or any future wearable that depends on real-time data.

This is why the conversation is moving away from coverage maps and pricing tables, and toward reliability, orchestration, and infrastructure partnerships.

Activation UX

One of the biggest overlooked challenges in this shift is activation.

On a smartphone, activation is relatively straightforward. You scan a QR code, download a profile, and you’re online. The user understands what’s happening.

But what happens when the device doesn’t have a screen? Or when the user doesn’t even know there is an eSIM inside?

This is where activation UX becomes a product problem, not a telecom problem.

Most implementations today rely on a companion app. You pair the device with your phone, authenticate, and the eSIM profile is provisioned in the background. Ideally, the user never sees it.

But this creates new layers of complexity.

Users need to understand pairing flows, devices need fallback options if provisioning fails, and verification must be secure without being intrusive.

The best implementations treat connectivity like Bluetooth pairing. Invisible, predictable, and recoverable.

The worst ones feel like telecom workflows forced into consumer products.

And that’s where many device companies underestimate the challenge.

Subscription models

Once activation becomes invisible, billing follows.

You can’t sell gigabytes the same way anymore.

Instead, connectivity gets bundled into subscriptions. Sometimes explicitly, sometimes hidden inside a broader product offering.

Think of it like this.

Users don’t want to manage data plans for their smartwatch or earbuds. They want the device to just work. So the pricing model shifts from usage-based to value-based.

This is where we see three emerging approaches.

Connectivity as a bundled feature. Included in the device price or subscription. No separate billing. Clean experience, but margin pressure on the OEM.

Connectivity as a tiered upgrade. Basic features work offline or with WiFi. Premium tiers unlock always-on connectivity. This is where most consumer devices are heading.

Connectivity as a metered add-on. Still exists, but increasingly feels outdated for wearables. Too much friction for too little perceived value.

The challenge is finding the balance between simplicity and sustainability.

Too simple, and you absorb the cost. Too complex, and users disengage.

Support & fraud

When connectivity is embedded, support complexity increases dramatically.

Users won’t contact a telecom provider. They will contact the device brand.

That means OEMs suddenly need to handle connectivity troubleshooting, network performance issues, cross-border behavior, and billing disputes, even when they don’t control the network.

At the same time, fraud becomes a real consideration.

Always-connected devices create new attack surfaces. Think about unauthorized activations, subscription abuse, and device cloning scenarios.

Without proper safeguards, connectivity can quickly become a cost center instead of a revenue stream.

This is why backend infrastructure matters more than ever. Not just provisioning, but policy control, monitoring, and lifecycle management.

Partner models

This is the part many device startups get wrong.

They treat connectivity as a supplier relationship. Something to plug in late in the product cycle.

But the successful models treat it as a partnership from day one.

Because connectivity touches product design, user experience, pricing strategy, customer support, and global expansion.

The most effective setups we’re seeing follow a few principles.

Tight API integration instead of manual workflows, flexible billing logic that adapts to different markets, multi-network access for resilience, and clear ownership of the user experience.

This is where embedded connectivity partnerships become strategic, not operational.

Fairplay fits naturally into this shift. Its model is built around predictable usage, global coverage, and a single eSIM that works across borders (185 countries). For OEMs moving toward subscription-based devices, this removes pricing uncertainty while maintaining performance. Instead of acting as just another provider, Fairplay can sit inside the product stack as an infrastructure partner.

eSIM as infrastructure

Zoom out, and this trend is not just about wearables.

It’s about a broader shift in how connectivity is consumed.

According to the Trusted Connectivity Alliance, eSIM adoption continues to accelerate, with hundreds of millions of profiles downloaded annually and strong growth in consumer and IoT segments. At the same time, analysts like Juniper Research point to rapid expansion in travel and embedded connectivity revenues, driven by new device categories.

Connectivity is moving from a user decision to a product default, from a standalone purchase to a bundled experience, and from a telecom product to digital infrastructure.

And once that shift happens, the competitive landscape changes.

Providers are no longer competing only with each other. They are competing for a place inside the device ecosystem.

What this means

If you’re building a connected device today, the question is no longer whether to include eSIM.

It’s how deeply you integrate it.

Do you treat connectivity as a feature, or as part of your core product architecture? Do you own the user experience end-to-end, or outsource it and hope for the best? Do you design your pricing around connectivity from day one, or retrofit it later?

The winners in this space will be the ones who make connectivity invisible, reliable, and economically sustainable.

Not the ones who treat it as an afterthought.

Conclusion

eSIM is no longer just a better SIM. It’s becoming infrastructure.

And that’s where the market is splitting.

Volume players will continue to compete on price and distribution, strong for travel but less suited for always-on devices. Infrastructure-focused providers are moving toward reliability, predictability, and integration.

The shift is already happening. API-driven platforms like Airhub, enterprise control models like SureSIM, and subscription-based consumer offers all point in the same direction.

Connectivity is becoming part of the product.

Which changes the question.

Not “Which eSIM is cheapest?”
But “Which partner supports the experience we want to deliver?”

For OEMs and device startups, that decision comes early.

Because in this model, connectivity isn’t an add-on.

It’s the foundation.