Telcos dial up international roaming perks to take on eSIM companies

Time of India

2 days ago

NEW DELHI: As the holiday season bumps up foreign travel, the country's telecom operators are enhancing their international roaming services to ward off competition from affordable eSIM providers.Over the last year or so, flexible plans for international travellers had helped telecom operators corner the market, pushing players like Matrix to the periphery. But now, they face a growing threat from low-cost travel eSIM providers, which are offering similar services at lower rates.While a typical telco plan might cost ₹3,000-5,000 for 7-10 days of validity with limited data, eSIM providers such as Saily, Jetpac and Matrix offer data-only plans for less than half that rate, said industry executives and analysts.
The companies did not immediately respond to ET's emails seeking comments.
Analysts, however, point to the low penetration of eSIMs in India as a challenge for the low-fee service providers.
Nevertheless, telecom operators are sweetening their offerings in a bid to keep their higher revenue generating subscribers from opting for the services of low-cost travel eSIM providers.
Indians travelling abroad have generally been using a basic telecom plan, primarily for receiving one-time passwords (OTPs) that are needed for financial transactions, and supplementing it with a travel eSIM or local physical SIM for data, said Siddhant Cally, research analyst at Counterpoint Research.
Over the last one month or so, both
Airtel
and
Vodafone Idea
have come out with upgraded international roaming plans, with enhanced data benefits, flexible activation, seamless coverage across countries, and longer validity in a bid to shore up benefits to premium customers travelling abroad.
'Telcos are increasing their focus on international roaming plans, despite it not being a very high-revenue contributing business segment,' said Balaji Subramanian, analyst at
IIFL Securities
. 'Any additional revenue, even if a small percentage (estimated potentially at 1-1.5% of mobile revenue, or ₹1,000-1500 crore annually), is welcome.'
He said offering attractively priced roaming plans is viewed as a very effective tool to improve customer stickiness and reduce churn, especially among higher average revenue per user (ARPU) customers who travel abroad frequently.
Meeting the needs of higher-segment customers who travel abroad enhances their overall experience with the network, Subramanian said.
Earlier, top telecom executives such as
Bharti Airtel
managing director and chief executive Gopal Vittal had highlighted international roaming as strategically important for retaining high-value customers and differentiating the company's offerings in a competitive market, despite being a relatively small contributor to overall revenues.
International travel by Indians has rebounded sharply since the pandemic, surpassing pre-pandemic levels. In 2024, outbound departures rose to 30.2 million, up 8% from 2023, which had recorded a 29% year-on-year jump, according to a
Thomas Cook
report. The previous peak was 26.9 million in 2019.
Globally, foreign travellers spend $12-20 per trip on travel eSIMs, Counterpoint Research said.
Providers of eSIMs typically operate as light MVNOs (mobile virtual network operator), which purchase connectivity in bulk from roaming aggregators, offering predominantly data-only plans, often excluding SMS or voice services, which keep costs low.
But for now, telcos are hoping to take advantage of the low penetration of eSIMs in India.
The eSIM feature is primarily available in high-end smartphones. Analysts estimate that 10-15% of the total smartphone installed base are eSIM-capable. Awareness regarding eSIMs, too, is significantly low in India.
'The market is expected to grow in India, especially as awareness increases and the ecosystem develops, given India's price-sensitive nature,' said Cally. 'Awareness is being built through targeted digital marketing on platforms like social media. Future marketing channels could include partnerships with airlines, visa offices, and hotel booking platforms.'
Savvy international travellers are discovering dozens of such providers through aggregator marketplaces like Mobimatter. These services have increasingly become easier to use, with global coverage, app-based management, and support for multiple operators in foreign countries.