eSIM Built into Smartphones
Dual SIM Allows Two Plans
Three Telecom Companies Begin System Development
[Asia Economy Reporter Lim Hye-seon] The Ministry of Science and ICT has completed the procedural improvements for the introduction of eSIM (embedded SIM). Starting this September, users will be able to subscribe to two separate mobile plans on a single smartphone using the eSIM service and receive benefits such as individual contract discounts for each plan.
On the 25th, the Ministry of Science and ICT expanded the definition of SIM cards in the "Standards for Interconnection of Telecommunications Equipment" to include not only the traditional chip-type USIM but also the software-based eSIM. The "Standards for Providing Discounts Equivalent to Subsidies (Contract Discount Notification)" were also revised to allow subscribers using two SIM cards to receive overlapping discounts.
Overlapping Discounts Based on Unique Identification Numbers
Unlike USIMs, eSIMs are embedded chips within smartphones that allow users to download carrier profiles at home using QR codes. A key feature of eSIM is the ability to use "dual SIM." This enables one phone to operate two separate mobile plans, which can be used for personal and work purposes respectively.
With this notification revision, users can receive discounts based on the line, i.e., the device’s unique identification number (IMEI). The IMEI is an internationally assigned unique number for communication devices, allocated per device or modem chip connected to the network. Dual SIM devices have two IMEIs since two SIM cards are issued and activated. This means users can receive handset subsidy discounts from SK Telecom and contract discounts from KT simultaneously. The contract discount is a system where users forgo carrier subsidies when purchasing a phone and instead commit to a contract period to receive a 25% discount. Users can maintain a 25% contract discount with SKT while subscribing to a new LG Uplus plan to also receive a 25% discount, effectively lowering their overall mobile charges.
Will There Be eSIM-Exclusive Plans?
The three mobile carriers have formed a task force (TF) team and started system development. They are also consulting with the Korea Information and Communication Industry Promotion Association to minimize issues arising from combining two carriers on a single phone.
A telecommunications industry official said, "We are discussing whether to create eSIM-exclusive plans to provide benefits to users or to utilize existing plans," adding, "We are also considering whether having two numbers on one phone should grant benefits equivalent to two separate users." The official further noted, "The pre-installed application (app) installation situation is also ambiguous." Pre-installed apps refer to applications installed on a smartphone before it is ever powered on. Device manufacturers like Samsung Electronics and carriers such as SK Telecom, KT, and LG Uplus install these apps in advance.
Advancement of the ‘IMEI Integrated Management System’
Smartphones are identified by IMEI to check for loss or theft. Since dual SIM devices have two IMEIs, users must report both IMEIs as lost or stolen to enable "usage blocking." To address this, a pre-registration service for IMEIs will be established so that if a user registers their IMEIs in advance, blocking can be applied even if only one IMEI is reported lost or stolen. The integrated management system will also allow viewing of compensation payment histories to prevent duplicate or improper insurance claims based on the device.
Samsung Electronics will embed eSIM starting with the Samsung Galaxy foldable phone series to be unveiled this August. A telecommunications industry official explained, "We expect all system development to be completed by August in line with Samsung Electronics’ new phone launch."
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