Device entitlement servers play a critical role in the success of mobile network operators (MNOs), particularly those that offer eSIM-enabled subscription services. They empower various devices, ensuring MNOs can provide their subscribers with seamless connectivity, enhanced user experiences and a wealth of value-added services.
A device entitlement server allows MNOs to accept connection and subscription requests from a host of modern cellular network-enabled devices. This is crucial, especially since by 2021, Statista says there were nearly 15 billion mobile devices worldwide. This is a 4.2-billion increase from what it was in 2020, and it is expected to rise to 18.22 billion by 2025.
Additionally, eSIM (i.e., embedded subscriber identity module) adoption is increasing globally. According to a report by Global System for Mobile Communications (GSMA) Intelligence, there will be 850 million eSIM smartphone connections worldwide by 2025. This is projected to reach 6.7 billion by 2030.
The telecommunications industry actively embraces eSIM technology. The following are all signs that point to its widespread adoption:
- eSIM providers that enable eSIM management and device entitlement
- More than 260 MNOs and mobile virtual network operators (MVNOs) that provide eSIM services by mid-2022
- Global acceptance of eSIM specifications and standards
- Original equipment manufacturers that manufacture eSIM devices
In short, the world can look forward to two things: an increase in cellular network devices and widespread eSIM adoption. MNOs and MVNOs must prepare to support this influx of devices and demand for eSIM services.
To this end, MNOs and MVNOs require device entitlement servers. This article looks into the key functionalities of entitlement servers, with particular emphasis on why network operators need them.
What Entitlement Servers Do
Device entitlement servers enable network operators to do the following things.
1. Provide Connectivity to Companion Devices
In the past, telcos only needed to provide cellular network connectivity to mobile phones. Today, there are other devices that require a mobile network connection.
These devices include wearables like the Samsung Gear, Apple Watch and Huawei Watch. They also encompass internet-of-things (IoT) devices, such as smart refrigerators, home surveillance systems, locks, speakers, televisions, and even cars that rely on cellular network data connectivity to fulfil their functions.
Entitlement servers allow network carriers to expand their services and provide support for non-traditional network cellular devices. In other words, device entitlement servers accommodate connection and subscription requests from wearables and IoT devices.
Through entitlement servers, network operators can evolve with the telecommunications landscape and remain relevant to their consumers.
2. Offer Multi-SIM Functionality
The more SIM cards a user has, the higher that user’s consumption is likely to be. Data shows that multi-SIM can increase revenue per user per device by around 30%. Therefore, multiple SIM cards mean a greater revenue per user.
Telecommunications companies can increase their revenue by offering multi-SIM functionality. They should allow their consumers to get multiple SIM cards that share the same mobile number and data rate for their various connected devices.
eSIM is a step in the right direction when it comes to multi-SIM functionality. It removes the necessity of providing subscribers with individually programmed physical SIM cards.
Subscribers can use their eSIM-enabled devices to access their network carrier’s entitlement servers and download connected SIM profiles onto their companion devices. This is how easy entitlement servers make it to enable and activate multi-SIM functionality.
3. Introduce New Value-Added Services
Entitlement servers allow network operators to incorporate next-generation capabilities such as voice over long term evolution (VoLTE) and rich communication services (RCS) into their services.
VoLTE provides high-quality voice calls over LTE networks. Meanwhile, RCS enriches traditional messaging with advanced features such as read receipts, group chat and high-resolution photo sharing.
Network carriers need entitlement servers to deploy VoLTE, RCS and other advanced value-added services. These feature enhancements can considerably improve customer experience and increase subscriber engagement by as much as 20 times.
4. Improve Performance
Entitlement servers allow network operators to exert superior control over devices, leading to enhanced security through advanced authentication processes. This not only protects the device and user data but also ensures smoother operations across all connected devices.
Benefits Entitlement Servers Provide to MNOs
By allowing MNOs and MVNOs to accomplish the things discussed above, device entitlement servers provide many benefits to network operators.
First, they let telcos capitalise on wearables and IoT devices to boost average revenue per user (ARPU). Since subscribers can enable multiple devices and share data and one number across various devices, they tend to use more data and get more services.
Second, they also increase retention and customer lifetime value. As they provide seamless multiple-device connectivity, deliver multi-SIM functionality and enable feature-enhancing value-added services, entitlement servers improve the customer experience, increase loyalty and decrease churn. This, in turn, increases customer lifetime value.
Device Entitlement Servers: Great for the Bottom Line
Device entitlement servers are an indispensable asset for MNOs and MVNOs.
By enabling multi-device eSIM cloud platform connectivity, delivering multi-SIM functionality, enabling value-added services, and improving performance, network operators can grow their average revenue per user and customer lifetime value.