eSIM Users More Likely To Switch Mobile Providers, Research Finds

Australians using eSIM-enabled smartphones are changing mobile providers at far higher rates than the broader market, according to new research from Roy Morgan, highlighting how digital SIM technology is reshaping competition in the telecommunications sector.

The latest figures show 24 per cent of eSIM users switched mobile providers during the past year, compared with just 12 per cent across all mobile phone users.

eSIM technology, first introduced locally in 2019, removes the need for physical SIM cards by embedding the SIM directly into the handset. Most premium smartphones released by Apple, Samsung and Google in recent years now support the technology, with many devices allowing two separate mobile services to operate simultaneously through dual eSIM support.

Consumer awareness of eSIMs has climbed rapidly. Roy Morgan found 60 per cent of Australians using mobile phones were familiar with the technology by March 2026, up from 41 per cent two years earlier.

Among consumers aware of eSIMs, just over half said their primary handset supports the feature, while 31 per cent confirmed they had already activated an eSIM service with their provider.

The research suggests one of the biggest advantages of eSIM technology is the ability to move between providers more easily. Without needing to wait for a physical SIM card, consumers can activate a new service digitally within minutes.

The Australian Competition and Consumer Commission previously predicted eSIMs would increase competition across the mobile market by reducing barriers to switching providers, particularly benefiting smaller mobile virtual network operators competing against Telstra, Optus and Vodafone.

Roy Morgan said the switching gap between eSIM users and the wider market has widened significantly in recent years. Back in 2024, eSIM users switched providers at a rate only three percentage points higher than the general market. That gap has now doubled.

Roy Morgan chief executive Michele Levine said the technology was clearly influencing customer behaviour by making it easier for users to search for better deals and move providers more freely.

She also suggested the widespread Optus outage in late 2023 may have accelerated public awareness of eSIM technology, particularly among consumers looking for more flexible backup connectivity options.

The data also indicates consumers without eSIM-enabled devices remain far less likely to leave their existing providers, with switching rates among traditional SIM users largely unchanged over the past two years.