Going cardless: Can eSIMs connect startups to a billion-dollar opportunity?

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Hi there,

When I was traveling around Southeast Asia last year, I was reminded of how much I hate buying local SIM cards. It usually involves fighting crowds gathered around a small booth, handing your passport to a stranger (which I dislike doing), and most annoyingly, being forced to buy an expensive data plan. Somehow, cheaper ones just aren’t available.

I knew if I stepped out of the airport and went to a local shop, I would find a lower-priced SIM, but that would be tedious. Still, these prices don’t compare to the exorbitant fees charged by Indian telecoms for a roaming package.

To solve this, eSIM companies have cropped up offering attractive plans from local telcos.

In this week’s Big Story, my colleague Glenn highlights the nascent but growing market for eSIM companies in Southeast Asia. Not only are these startups attracting VC attention, but telecom operators are also looking at them as a viable option to reach new customers, as eSIMs don’t infringe on their existing sales.

With more smartphone companies integrating eSIM technology into their phones, some say that the traditional small plastic cards will go the way of the compact disc.

These types of transformative advances in technology bring us to our second Big Story by my colleague Peter, which maps out investments by big tech firms in Southeast Asia over the last 18 months. Companies such as Google, Nvidia, and Amazon, among others, have committed to investing nearly US$70 billion into Southeast Asia, with most of it going into AI infrastructure.

Speaking of the money being poured into AI, in this week’s AI Odyssey, I explore a key question: Can genAI generate enough money?

But first, the Big Stories.

— Collin

THE BIG STORIES

1️⃣ Why eSIMs could be the next startup goldmine

A young couple using a smartphone. Photo credit: khunaspix / 123RF

Southeast Asian eSIM startups need to convince telcos they can help them reach customers outside of their home countries.

AI ODYSSEY

FYI

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