Blog series: eSIM#4 Truphone, a $400 million company sold for £1 and Ubigi the eSIM provider that you may be already using in your BMW
On this eSIM post we have a bit of global politics and a bit of monetization opportunities through laptop and car integration. Another great article from Mohamed Abdou.
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In an era dominated by seamless connectivity and global communication, companies like Truphone and Ubigi have emerged as pioneers in providing innovative solutions for international travelers and businesses.
Truphone: Transforming Connectivity with Innovative eSIM and IoT Solutions
Truphone, a UK-based company that specializes in eSIM services, is a global network operator that has made significant strides in the eSIM space. Truphone was founded in 2006, initially providing SIM cards for travelers to use in their phones while roaming outside their home countries. In recent years, Truphone shifted its focus to eSIM services, capitalizing on advances in hardware design that allow for seamless carrier switching without physically replacing a SIM card.
Truphone’s end-to-end software-based services include its own IP for eSIM management, SIM operating systems, GSMA-accredited platforms, Entitlement Server, Bootstrap, CMP (Connectivity Management Platform), and global connectivity [1].
Truphone’s business model revolves around eSIM technology and related services. Here are the key components:-
eSIM Provisioning: Truphone enables eSIM activation for consumer devices (such as smartphones, tablets) and IoT (Internet of Things) devices where their eSIM profiles allow users to switch carriers seamlessly without physical SIM card changes meanwhile the company’s unique end-to-end software stack ensures efficient eSIM management.
Global Connectivity: Truphone provides global connectivity, allowing devices to connect to networks in various countries without the need for physical SIM cards which is particularly valuable for international travelers, IoT deployments, and connected devices.
Partnerships and Distribution: Truphone collaborates with device manufacturers, mobile operators, and other ecosystem players. Their partnerships with companies like Apple contribute to their success.
Revenue Streams:
eSIM Activation Fees: Truphone earns revenue by provisioning eSIM profiles for devices.
Connectivity Services: They offer data plans and connectivity services to end-users and enterprises.
IoT Solutions: Truphone’s eSIM technology is well-suited for IoT applications, generating revenue from IoT deployments.
Truphone raised £30 million (approximately $38 million) in its latest funding round, valuing the company at £410 million (about $516 million). The majority of these funds came from Vollin Holdings and Minden Worldwide, both tied to Russian oligarch Roman Abramovich [2].
Truphone has provisioned over 4 million eSIM profiles globally, with approximately 20,000 eSIMs being downloaded daily [3].
Editor comment: It turns out that the story does not end there and FCC fined and imposed sanctions on Truphone for having Russian ownership in April 2022. [4]
To react to this in January 2023 ownership changed. After this the sanctions were removed.
“German tech entrepreneur, Hakan Koç, and former telecoms executive and private equity investor, Pyrros Koussios, have acquired global mobile operator Truphone.
Koç and Koussios are said to have snapped up the assets and subsidiaries of Truphone Limited for 1 following the completion of the company’s restructuring and the recent receipt of National Security and Investment Clearance from Grant Shapps MP, the Secretary of State for Business, Energy and Industrial Strategy (BEIS). [5]”
Ubigi: Cellular data connectivity wherever you are!
Ubigi is a brand that has been at the forefront of the eSIM revolution, offering a range of services that cater to the needs of modern consumers and businesses. As a subsidiary of Transatel, Ubigi has carved out a niche in the eSIM market by providing seamless connectivity solutions for a variety of devices, including smartphones, tablets, and connected cars.
Ubigi provides free eSIM profile as well as local, regional, and international eSIM prepaid data plans. Thanks to Ubigi you will get immediate access to the Internet at affordable local roaming prices, in 200+ destinations. Ubigi eSIM is already embedded in several laptop models from major manufacturers such as Acer, Asus, Dell, Microsoft Surface, and VAIO [6].
Their business model revolves around offering seamless and hassle-free connectivity to consumers and businesses alike, leveraging partnerships with mobile network operators (MNOs) around the world.
Ubigi operates as a Virtual Network Operator, which means they do not own the physical infrastructure of cellular networks but instead partner with established MNOs. Through these partnerships, Ubigi can offer its customers access to a wide range of networks across different regions without the need for physical SIM cards.
Ubigi’s approach to eSIM technology is centered on flexibility and convenience. Their services are designed to provide international coverage and local performance, ensuring that users have access to low latency and maximum bandwidth. This is particularly beneficial for business travelers who require reliable and secure connectivity on the go.
One of Ubigi's key selling points is its flexibility in subscription plans. Customers can choose from a variety of plans tailored to their specific needs, whether it's for international travel, IoT devices, or everyday use. This flexibility allows users to customize their connectivity experience and avoid being tied down to rigid contracts. Ubigi offers various payment options to enhance convenience for its customers. Whether you prefer credit card payments, PayPal, or other digital payment methods, Ubigi strives to accommodate your preferred payment method, making it easy to manage your data plan subscriptions [7].
In 2023, Mobile Europe recognized Ubigi as Consumers’ Champion at MVNO of the Year Awards. Ubigi as chosen by the judges in recognition of just what a massive undertaking it is to be a successful MVNOs in the consumer sector beyond simple price arbitrage [8].
Editors note: Ubigi has French and Japanese ownership through x and NTT Docomo.
It seems like they also entered the vehicle communications business by integrating their eSIMS to cars where the drivers can activate eSIM depending on which countries they are travelling to [9].
“Cost of the service is €10 per month for unlimited data allowance.”
Personal opinion: eSIM is really the future of growth in communications market.
Bio
I'm Mohamed Abdou, an experienced seasoned technical blogger who loves delving into the complexities of the digital world and transforming them into easily understandable insights for readers of varying expertise levels. With more than 18 years’ experience and a robust background in telecommunications with hands on many functions within telecom vendors and operators’ environment i.e. Alcatel-Lucent, Ericsson & Etisalat, my goal is not just to scratch the surface but to guide readers through the layers, making seemingly complex concepts accessible and understandable. Join me in this expedition through the digital landscape, where the language of technology speaks, and everyone is invited to the conversation.
Edited by Murat Gürsu
References & Sources:-
[1] Truphone http://web.truphone.com/about/newsroom/truphone-celebrates-10-millionth-esim-profile/
[2] TechCrunch https://techcrunch.com/2020/04/14/truphone-raises-38m-at-516m-valuation-as-its-esim-business-crosses-4m-profiles/
[3] Lightreading https://www.lightreading.com/services/truphone-raises-38m-in-funding-amid-esim-growth
[4] https://www.telecomstechnews.com/news/2023/jan/24/roman-abramovich-owned-british-telecoms-firm-sold-for-1/
[5] https://www.reuters.com/world/us/us-agency-seeks-fine-montana-wireless-carrier-tied-russian-oligarchs-2022-04-21/
[6] Ubigi https://cellulardata.ubigi.com/help-center/faq/ubigi-esim-service/what-is-ubigi-esim/
[7] Dotcom Magazine https://dotcommagazine.com/2023/07/ubigi-top-ten-important-things-you-need-to-know/
[8] Transatel https://www.transatel.com/news-and-insights/press-releases/ubigi-wins-mvno-of-the-year-awards-2023/
[9] https://www.press.bmwgroup.com/global/article/detail/T0439861EN/extended-possibilities-for-premium-connectivity:-bmw-integrates-ubigi%E2%80%99s-global-personal-esim-solution?language=en