The eSIM Wild West Is Ending

Since eSIM’s entered the consumer market, travel eSIM providers have operated in regulatory grey areas, offering services without proper licensing, bypassing local telecom regulations, and treating compliance as optional. That era is over.

Recent actions by Turkey and India signal a clear trend: regulators are professionalising eSIM and closing loopholes that unlicensed providers have exploited for years.

The Crackdown Begins

Turkey's telecommunications authority blocked access to multiple unlicensed eSIM providers, preventing Turkish residents from accessing these services while in the country. The reason? These providers lacked proper licensing and failed to comply with data localisation requirements.

India took similar action, ordering Google Play and Apple to remove non-compliant eSIM apps for lacking required no-objection certificates. The apps were also blocked at the ISP level, making them inaccessible within India.

Brazil is following suit. In 2025, Anatel overhauled its telecom regulations (Resolution 777/2025), closing the loophole that allowed internet access and mobile services to be treated as “value-added services.” Going forward, only licensed operators — including MVNOs — can provide mobile connectivity, which effectively brings eSIM provisioning under the core telecom framework with requirements for lawful intercept, security, and consumer protection.

This isn't about protectionism. It's about bringing eSIM providers under the same regulatory framework that applies to all telecommunications services.

Why Now?

The travel eSIM market has grown rapidly, largely because providers could bypass traditional telecom regulations. No local licensing. No consumer protections. No regulatory oversight.

Regulators are catching up. They're recognising that eSIM provisioning isn't a tech service—it's telecommunications. And telecommunications require proper licensing, security protocols, and consumer protections.

Countries are also increasingly concerned about data sovereignty and national security. When eSIM providers route data through global cloud systems without local oversight, regulators take notice.

The Impact

For unlicensed providers, this creates existential challenges:

• Market access restrictions
• App store removals
• Service disruptions
• Compliance costs they may not be able to absorb

For customers, it means uncertainty. Services that work today might not work tomorrow. Apps they rely on could disappear without warning.

For affiliates and travel brands, it's a reputation risk. Recommending providers that face regulatory uncertainty puts your credibility at stake.

The MNO Advantage

Licensed Mobile Network Operators face none of these challenges because we've been operating within proper regulatory frameworks from the start.

At SmartRoam, we didn't take shortcuts. We built our service as a licensed MNO with direct relationships to over 600 networks worldwide. We operate with the security protocols, consumer protections, and regulatory compliance that authorities expect.

While others scramble to achieve compliance or face market restrictions, we continue expanding coverage and improving service.

This is how eSIM should have worked from the beginning.

What This Means for Partners

When choosing eSIM partners, look beyond marketing promises. Ask about licensing. Understand regulatory compliance. Consider long-term viability.

Your customers deserve connectivity backed by proper infrastructure and consumer protections, not regulatory arbitrage that could disappear overnight.

The market is correcting itself. The providers who survive will be those who built things the right way from the start.

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