Impact of eSIM on Digital Identity Verification

This document is a technical report that discusses the implications of embedded SIM (eSIM) technology on the electronic Know Your Customer (eKYC) processes within the telecommunications industry. It outlines the projected growth of eSIM devices and their potential to transform customer engagement and subscription activation by allowing users to activate services remotely without visiting physical stores. The report details the challenges faced by mobile network operators (MNOs) in verifying customer identities in a digital environment, particularly in compliance with KYC and Anti-Money Laundering (AML) regulations. It highlights the increasing prevalence of subscription fraud and the necessity for MNOs to adopt advanced identity verification methods, including biometric technologies. The report also emphasizes the role of eSIMs in enhancing security against fraud, particularly SIM swap fraud, and discusses how MNOs can leverage digital identities to create new revenue streams while ensuring customer trust and compliance with regulatory requirements.