T-Mobile aims to cut roaming costs in M2M market with new eSIM

T-Mobile US (NYSE:TMUS) launched an eSIM, a new kind of SIM card that it says will eliminate roaming in the machine-to-machine market. Specifically, the carrier said the eSIM eliminates roaming for M2M communications in the United States and Canada by giving customers local data rates when devices travel to each country covered by the product. The carrier promised to add additional countries to its eSIM program in the future.

T-Mobile trails other Tier 1 carriers in the M2M and enterprise markets, so its new eSIM could help set it apart. T-Mobile said companies can build eSIM into an array of connected products including those for the connected car, mobile healthcare and wearables markets. The carrier said its eSIM "ships fully configured out-of-the-box for use with multiple international carriers" and can be easily pre-built into virtually any connected device. T-Mobile didn't name its supported carriers.

Although T-Mobile's eSIM solution currently only works between the United States and Canada, the implications of the technology are large. Carriers have been discussing the idea of an eSIM or "soft SIM" for some time in regard to the M2M market. The GSMA has supported what it refers to it as an "embedded SIM." However, many carriers have been resistant to the idea because it would break up the traditional wireless business models and their control over roaming. Release

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