Could the Hosting and Network Industry Learn Something from eSIMs on Connectivity and Security?

Global communications investor Business Telecommunications Services (BTS) Group announced its investment on April 8 in ZIM Connections (ZIM), a London-based eSIM marketplace.

Headquartered in Miami, BTS Group is known for eSIM services, including solutions in voice, messaging, and cloud communications.

Its latest investment in ZIM shows BTS Group is serious about broadening its global reach: In February, it acquired a new partnership with SoftBank to expand its APAC presence.

As BTS Group taps into the eSIM market, ZIM looks like a good place to start: ZIM covers 190+ destinations because it partners with local network providers.

It’s a win for ZIM, too.

Giulia Acchioni Mena, ZIM’s co-founder and COO, explained that this partnership would allow ZIM to scale its technology and reach more than it could have otherwise.

“Joining forces with BTS Group allows us to scale our technology and reach, making seamless, high-quality mobile connectivity accessible to more users and businesses around the world,” she said.

The global eSIM market is expected to reach $15.5 billion by 2030 at a CAGR of 7.9% from 2023 to 2030, according to a study conducted by Grand View Research.

Rafael Olloqui, CEO of BTS Group, mentioned the growth potential in the official press release, noting that smartphone eSIM adoption is set to reach 76% by 2030.

“This investment represents a strategic move into one of the fastest-growing segments in telecom,” Olloqui said. “As global travel and eSIM adoption accelerate, we’re helping operators capitalize on emerging roaming opportunities.”

But as eSIM technology moves beyond smartphones, it’s becoming integral to global connectivity — particularly in travel and IoT.

The reason behind this massive growth is the increasing demand for IoT solutions expanding new industries.

Most people are familiar with IoT devices such as smart wearables, connected healthcare devices, smart city infrastructure, and industrial machinery monitoring.

With AI and edge computing reducing latency at the source, eSIMs are a scalable path to smarter IoT deployments — something worth paying attention to if you’re in networking.

As we witness the acceleration of eSIMs, it does raise a few issues along the way.

Shifting from static SIMs to dynamic eSIMs is not a painless process, especially when it comes to security.

Hosting providers know that, much like telecom operators, they should prioritize secure network management, especially with the rise of AI-driven infrastructure.

As we’ve seen with HP, AI can analyze real-time data, like network performance and user behavior, and dynamically switch eSIM profiles for the best available network.

AI can also detect threats in real time through the network, especially regarding sensitive data, like when you’re logging in from a new device.

It’s why Adam Sandman, the CEO of Inflectra, warned that misconfiguration could lead to connectivity failures or slowdowns.

“The move from static SIMs to dynamic eSIMs increases the agility of networked IoT devices, but naturally increases the complexity and risk of an outage or connectivity failure due to a misconfiguration,” Sandman said.

He added: “This increased cost and effort need to be factored in against the likely cost savings and performance efficiencies.”

It’s definitely something to keep in mind.

Cloud hosting providers may find some valuable lessons in eSIM technology.

IoT devices, in particular, rely on CDNs to reduce latency by positioning servers or data centers closer to end users.

While eSIMs may not replace Points of Presence (PoPs) or CDNs, they could complement these systems.

Sandman said this technology is already revolutionizing industries by offering remote connectivity management for IoT devices in areas without easy access.

“For these devices and use cases, eSIMs will have a massive impact, because it will allow you to have a mission-critical device located in a remote region that can have its network connectivity changed/updated in place without any physical access,” he said to us.

HP recently launched HP Go, a 5G eSIM solution that eliminates the need for physical SIM cards, enabling automatic switching to the strongest available network, even without Wi-Fi.

Telenor is also investing in eSIM technology to enhance connectivity at sea for industries like cruise liners, oil rigs, commercial shipping, fishing fleets, and coastal infrastructure.

Could eSIMs offer reliable IoT connectivity as edge locations take over local data processing to minimize latency? Maybe.

But the key connector is likely one that should be powered by AI.

“With the rise of AI in network management, the AI model could dynamically adjust the eSIM being used by a device based on real-time network conditions and operator costs,” said Sandman.

AI-driven solutions can already predict network traffic, adjust bandwidth, and automatically choose optimal routing based on real-time usage.

For hosting providers, this means a more scalable and adaptive infrastructure that adjusts based on demand — similar to how eSIMs optimize connectivity depending on the network.

In other words, it’s not just about swapping out plastic SIMs for digital ones. Maybe it’s a way to rethink how devices connect and adapt in dynamic network environments.

Hosting and network providers that lean into the AI-powered ecosystem could use the same tools that make better, smarter connections possible.