The age of embedded SIMs (eSIMs) is no longer “coming soon”—it”’s already here. The race is now about who can make eSIM activation truly seamless.

A recent global survey conducted by Mobile World Live (MWL) in partnership with Thales reveals that frictionless activation—especially through the Subscription Manager Discovery Server (SM-DS) method — is the next frontier in mobile connectivity. The findings are clear: while eSIM adoption is skyrocketing, activation processes are still riddled with pain points for both operators and users.

And that matters because by 2028, according to the Trusted Connectivity Alliance (TCA), nearly four billion consumer eSIM devices and two billion IoT eSIMs will be active globally. That’s six billion devices that need to be connected effortlessly—not with QR codes, manual entries, or confusing app flows.

The Rise of the eSIM — and the Complexity Behind It

Mobile operators, virtual operators, and device manufacturers all agree on one thing: activation at scale is one of the biggest operational challenges today.

The MWL–Thales survey gathered over 230 industry respondents, with 40% of them at CXO or director level — a sign that this issue has the attention of leadership. Respondents came primarily from Europe (45%), North America (21%), and Asia (18%), with a mix of MNOs (55%), MVNOs (20%), and OEMs (25%).

Their main focus? How to make eSIM activation so smooth that users barely notice it’s happening.

While smartphones remain the backbone of most operators’ eSIM business, tablets, laptops, wearables, and IoT devices are quickly catching up. Roughly half of operators now see tablets as a key part of their connectivity strategy, and around one-third are already managing IoT and wearable eSIM profiles—a number expected to surge in the next two years.

Why the Activation Process Still Feels “Clunky”

Here’s where things get interesting—and a bit frustrating.

Despite all the talk about digital-first experiences, around 40% of MNOs and MVNOs still find it “moderately or very difficult” to integrate their backend systems with Remote SIM Provisioning (RSP) frameworks to support SM-DS-based activation.

That means for millions of users, eSIM activation still involves scanning QR codes, entering long numbers, or dealing with inconsistent app instructions.

The problem isn’t just technical. It’s about user experience. Operators acknowledge that even something as simple as retrieving the eSIM identifier—the eID—can add unwanted friction. While 60% of MNOs and 62% of MVNOs say they can fetch eIDs without complicating things, the rest admit it often leads to user frustration.

And for those setting up eSIMs at home, it’s even worse. Users have to manually enter long eID strings into web portals — something that instantly kills the promise of “instant digital activation.” In contrast, in-store activations (where staff handle the process) are smooth and fast.

The conclusion? Digital activation still isn’t as frictionless as it should be, and that gap could make or break user adoption in the long run.

SM-DS: The Hero Technology Everyone’s Still Learning to Use

At the heart of this conversation is the Subscription Manager Discovery Server (SM-DS) — the quiet enabler of true one-click eSIM activation.

Unlike QR-based activation, SM-DS doesn’t need a camera or code. It simply allows the device to “discover” and download the right eSIM profile automatically. Think of it as plug-and-play for connectivity.

However, the survey shows that while operators are intrigued, many still struggle to determine which devices support SM-DS. Roughly one-third of both MNOs and MVNOs say it’s “moderately difficult” to identify device compatibility. This uncertainty makes it harder to train customer support teams or design smooth onboarding flows.

Meanwhile, device manufacturers (OEMs) play a key role here—they’re the ones enabling SM-DS at the hardware level. And while Apple, Google, and Samsung have already integrated SM-DS into their latest devices, not all vendors have caught up.

Still, two-thirds of MNOs report that connecting to multiple discovery servers (from GSMA, Apple, Google, and Samsung) is either “easy” or “neutral.” For MVNOs, however, it’s more complex—only 41% said they can easily connect to these platforms. Smaller virtual operators often lack the deep integrations or partnerships needed to make SM-DS fully functional.

That’s a gap that will need to be closed fast as more devices—especially IoT and wearables—join the eSIM ecosystem.

The Control Dilemma: Operators Don’t Want to Depend on Third Parties

One of the most revealing findings of the report is about trust and control.

More than two-thirds of MNOs admit they’re “moderately concerned” about relying on third-party discovery servers to activate customer profiles. They see SM-DS as powerful but worry about losing control of the customer experience if a third party sits between them and the user.

MVNOs, however, appear less concerned. Only 18% say they are “very concerned,” while just over half are moderately worried. For them, the focus is on customer experience first, ownership second — a tradeoff they’re more comfortable making to stay competitive.

Multiple Paths, One Goal: Simplicity

Despite all the innovation, there’s still no single standard for eSIM activation. Operators continue to use multiple methods in parallel — and that’s not going away anytime soon.

According to the survey:

• 62% of MNOs and 57% of MVNOs still use digital QR codes.
• 40% of MNOs and 35% of MVNOs already use SM-DS.
• Around one-third use mobile apps for activation.
• About 30% continue to rely on physical QR codes, especially in retail contexts.

That mix highlights one important truth: users don’t care about the technology — they just want it to work. The method that offers the fastest, most intuitive experience will win.

Why Frictionless eSIM Activation Matters Right Now

If you’ve ever fumbled with a QR code or wondered why your “digital SIM” needs manual setup, you know why this matters.

The explosion of eSIM-ready devices — from the iPhone 15 and Pixel 8 to smartwatches, laptops, and even cars — means that activation isn’t a one-time process anymore. It’s becoming part of everyday life.

For operators, that means every activation is a customer touchpoint — one that can either build loyalty or create frustration.

That’s why simplifying activation isn’t just a technical issue; it’s a strategic business priority.

The Bigger Picture: How Thales Fits Into the Future of eSIM

As a global leader in secure digital identity and mobile connectivity, Thales is betting big on eSIM activation infrastructure — particularly SM-DS. Its SM-DS Connect platform is designed to give MNOs and MVNOs full control over profile delivery while reducing complexity for end users.

With over €4 billion invested annually in R&D and expertise across AI, cybersecurity, and quantum technologies, Thales has the credibility — and scale — to drive standardization in this fragmented market.

But it’s not the only one moving fast. Companies like Truphone (now 1GLOBAL), Kigen, Giesecke+Devrient (G+D), and Aeris are all expanding their remote SIM provisioning capabilities. Apple and Google, too, are increasingly building eSIM activation natively into their devices — putting pressure on operators to modernize or risk becoming bottlenecks in the process.

Conclusion: The Next Battle in Connectivity Is About User Experience

The MWL–Thales survey makes one thing unmistakably clear—eSIM technology has matured, but activation still hasn’t caught up.

The next phase of the eSIM revolution won’t be about how many devices are eSIM-compatible. It will be about how effortlessly they connect. SM-DS is emerging as the industry’s best shot at making that happen, but adoption still depends on education, integration, and trust between operators, vendors, and users.

The winners in this space will be the ones who own the activation moment — turning what used to be a technical step into a seamless, invisible part of the user journey.

As the market shifts from physical SIMs to embedded connectivity, frictionless activation will define not only customer satisfaction but also brand loyalty. Whether it’s Thales’ SM-DS Connect or Apple’s self-activation system, the race is on to make “connectivity without effort” the new normal.

In the words of one senior executive quoted by MWL:

“eSIM is no longer a technology story — it’s a user experience story.”

And that’s exactly where the future of global mobile connectivity will be decided.