ESIM Capability Boosts FNB Connect’s Subscriber Volumes

Why It Matters

The rapid uptake of eSIM technology is accelerating MVNO profitability, expanding digital services, and delivering measurable sustainability benefits, reshaping South Africa’s telecom market.

Key Takeaways

• eSIM sales now 10% of FNB Connect volume.
• eSIM revenue grew 96% year‑on‑year.
• Data usage rose 180% YoY, reaching 26 PB.
• eSIMs cut South Africa’s plastic SIM waste by ~190 t annually.
• MVNOs projected to hold 10‑12% market share by 2029.

Pulse Analysis

The eSIM revolution, once a niche feature in premium devices, has become a mainstream driver of growth for mobile virtual network operators. By embedding a programmable SIM directly into smartphones, carriers eliminate the logistical friction of physical card distribution, enabling instant onboarding and remote provisioning. In markets like South Africa, where FNB Connect pioneered eSIM support for both retail and corporate clients, the technology is delivering double‑digit revenue lifts and unlocking new revenue streams tied to data‑intensive services.

For FNB Connect, the eSIM surge translates into more than just sales numbers; it reshapes the MVNO business model. The 96% YoY increase in eSIM sales fuels higher average revenue per user as customers gravitate toward data‑heavy plans, evident in the 180% jump in data consumption. This usage intensity strengthens the MVNO’s bargaining power with wholesale network providers and positions the service as a core profit pillar within FirstRand Group. Moreover, the environmental narrative—cutting nearly 190 tonnes of plastic SIM waste annually—adds a sustainability credential that resonates with increasingly eco‑conscious consumers and regulators.

Looking ahead, eSIM adoption is set to accelerate IoT connectivity, with forecasts of 3.6 billion eSIM‑enabled devices worldwide by 2030. For South African MVNOs, this opens opportunities to bundle connectivity with smart‑home, wearables, and travel solutions, differentiating them from traditional telcos. Competitive dynamics will intensify as banks, retailers, and tech firms launch their own digital‑SIM offerings, but the firms that master seamless onboarding, transparent pricing, and integrated device ecosystems will capture the expanding share of the market projected to reach up to 12% of mobile subscribers within five years.