28 Sep 2026

Travel eSIMs are reshaping roaming: how should operators respond?

Travel eSIMs have rapidly emerged as one of the most disruptive developments in the mobile industry. For consumers, the appeal is obvious: affordable mobile data abroad, instant activation and no need to swap physical SIM cards.

For operators, however, the implications extend beyond the traditional roaming business. Travel eSIMs are creating new wholesale revenue opportunities while simultaneously placing pressure on roaming revenues, introducing new competitors into the connectivity value chain and exposing gaps in regulatory frameworks that were designed for a much simpler market structure.

As adoption accelerates, operators face an increasingly important strategic question: should they compete with Travel eSIM providers, partner with them, or reposition themselves within an evolving connectivity ecosystem?

Travel eSIMs are disrupting roaming economics

The most immediate effect of Travel eSIMs is on the traditional roaming business model.

Historically, operators generated roaming revenues through direct relationships with their subscribers. Customers travelling abroad purchased roaming bundles from their home network or paid roaming charges when using services overseas.

Travel eSIM providers offer a compelling alternative. Rather than purchasing roaming from their home operator, customers can buy connectivity from specialised providers such as Airalo, Ubigi or Holafly, often at a fraction of traditional roaming prices.

This creates a direct challenge for operators. Greater price transparency and improved customer awareness make it easier than ever for travellers to bypass conventional roaming products. Travel eSIMs also compete with local tourist SIM offers, further reducing opportunities for operators to monetise international travel.

At the same time, Travel eSIMs are generating new wholesale opportunities. Providers require access to mobile networks in destination markets, creating additional demand for wholesale roaming agreements, sponsored IMSI arrangements and eSIM enablement services. For some operators, particularly those in popular tourist destinations, growing inbound Travel eSIM traffic may partially offset declining retail roaming revenues.

The overall impact therefore varies by operator. However, the direction of travel is clear: value is increasingly shifting away from traditional retail roaming models and towards a broader ecosystem of connectivity platforms and intermediaries.

Travel eSIMs are reshaping the connectivity value chain

Perhaps the most significant long-term impact is not on roaming revenues, but on who controls the customer relationship.

Traditional international roaming involved relatively simple commercial relationships between home and visited operators. Travel eSIMs introduce a more complex ecosystem involving resellers, eSIM platforms, roaming hubs, MVNAs and IMSI sponsors.

As a result, the customer relationship increasingly sits with the Travel eSIM provider rather than the network operator. Operators continue to provide the underlying connectivity, while digital platforms increasingly control customer acquisition, branding and the purchasing journey.

Over time, this could lead to a gradual disintermediation of operators. Connectivity risks becoming an increasingly commoditised wholesale product delivered behind third-party brands, while customer loyalty, purchasing decisions and service innovation shift towards global digital platforms.

For operators, this may prove to be a more profound challenge than the direct loss of roaming revenues.

Regulatory frameworks are struggling to keep pace

The growth of Travel eSIMs is also exposing weaknesses in existing telecoms regulation.

Most regulatory frameworks were designed around licensed operators with direct customer relationships and a clear national presence. Travel eSIM providers challenge many of these assumptions, often serving users across multiple jurisdictions through complex partnership arrangements.

This raises questions around licensing, taxation and compliance. For example, providers may serve users within a country without holding a local telecommunications licence, while revenues may be recognised outside the destination country. Requirements relating to lawful intercept, subscriber identification and SIM registration also become more difficult to enforce when services are delivered remotely across multiple jurisdictions.

These issues create what many operators view as regulatory asymmetry. However, policymakers may also see Travel eSIMs as promoting competition and delivering consumer benefits through lower prices and greater choice.

As adoption grows, regulators will need to balance these competing objectives.

Operators are adopting different strategies

Operators are adopting a range of responses. Some have launched their own Travel eSIM propositions, while others are improving roaming offers through more competitive pricing and digital customer experiences. Many are also pursuing wholesale opportunities by partnering with Travel eSIM providers or acting as connectivity suppliers to the broader ecosystem.

There is no clear consensus on the optimal strategy. The right approach depends on factors such as market position, international footprint, wholesale capabilities and the regulatory environment.

What is becoming increasingly clear, however, is that Travel eSIMs are altering both the economics and structure of international connectivity. While they create new wholesale opportunities, they also challenge operators’ traditional role as the primary interface with customers. The longer-term question is whether operators can retain ownership of the customer relationship as international connectivity becomes increasingly platform-driven.