Travel eSIM revenue decline accelerates as competition prompts focus on services over margins

A Juniper Research study reveals that sharply falling revenue per gigabyte for travel eSIMs is being driven by heightened competition, shifting industry focus from price to value-added services and bundling strategies, transforming the landscape of travel connectivity by 2025.

A recent Juniper Research study quantifies a trend long sensed across travel connectivity: average revenue per gigabyte (GB) for travel eSIM data is falling sharply. The report finds revenue per GB will drop to $2.78 by 2025 from $3.20 in 2023 , a decline of more than 10% in two years , even as carrier wholesale costs remain largely unchanged. ^[1][7][3]

According to the original report, the paradox of falling retail prices despite stagnant wholesale costs is being driven not by cheaper underlying connectivity but by intensifying competition. Connectivity-as-a-Service platforms and “travel eSIM enablers” have simplified technical and regulatory hurdles, letting airlines, fintechs, online travel agents and a wave of non-telecom brands launch their own eSIM products. This proliferation of sellers is compressing prices as many vendors compete on identical data packages. ^[1][3][2]

Juniper’s dataset, which covers more than 60 countries and over 9,000 data points, also includes a Competitor Leaderboard and market forecasts that industry participants expect to become key reference material for investors and strategists. The report projects overall travel eSIM package revenue will rise even as per-GB pricing falls , Juniper forecasts $1.8 billion in travel eSIM revenue by the end of 2025, an 85% increase on 2024. That divergence , higher total revenue but lower unit margins , reflects growing adoption alongside price-driven customer acquisition. ^[2][3][5]

The study warns that the era of scaling purely on data margins is ending. Juniper’s Senior Research Analyst Molly Gatford sums up the strategic shift concisely: “Vendors have shifted focus from protecting margins to retaining customers.” That, the report argues, explains why average retail prices per GB are falling while wholesale inputs have not. ^[1]

Industry reporting and other analysts echo Juniper’s central conclusion: with eSIM-first devices from major handset makers normalising the technology and accelerating demand, differentiation through services rather than price will determine which vendors prosper. GSMA Intelligence and other market observers have similarly noted that digital MVNOs and travel-eSIM vendors increasingly rely on service and product differentiation to grow sustainably. ^[1][3][6]

Juniper and other coverage identify bundling as the next battleground. Rather than larger gigabyte packs or pure volume discounts, successful providers are adding value layers , loyalty rewards and travel perks, integrated trip tools and safety alerts, temporary local numbers or VOIP credits, insurance add-ons, and fintech benefits such as better FX or ATM fee discounts. Those bundles create margin pools untethered to wholesale data costs and can make customer relationships stickier. ^[1][2][5]

The report highlights early movers already exploring these routes: digital-first providers and newer enablers that integrate loyalty programmes, in-app travel services and premium support are better placed to protect margins than large, price-led incumbents. Airlines, OTAs and neobanks launching their own eSIMs are a particular competitive threat because they can embed connectivity within broader customer ecosystems. Juniper notes that niche providers experimenting with value layers are likely to outperform pure-data sellers. ^[1][6]

For mobile network operators, the rise of agile third-party providers and embedded eSIM offers presents both a challenge and an opportunity. Some operators are expanding their own travel-eSIM portfolios to defend roaming revenue; others are partnering with platform enablers to capture upside from bundled services. Industry commentary suggests the winners will be those that treat eSIMs as entry points to broader travel experiences rather than as commodity data. ^[6][3]

If Juniper’s findings hold, the travel-eSIM market will continue to grow rapidly in absolute terms while its competitive dynamics shift from price to proposition. Data, the report concludes, is becoming the entry ticket; the real value will be defined by what is built around that connectivity. ^[1][2][3]

📌 Reference Map:

##Reference Map:

• ^[1] (Alertify / Juniper summary) – Paragraph 1, Paragraph 2, Paragraph 4, Paragraph 6, Paragraph 7, Paragraph 9
• ^[2] (GlobeNewswire) – Paragraph 3, Paragraph 6, Paragraph 9
• ^[3] (Juniper Research original report page) – Paragraph 1, Paragraph 3, Paragraph 5, Paragraph 8, Paragraph 9
• ^[5] (Travel Daily News) – Paragraph 3, Paragraph 6
• ^[6] (TechRadar / industry commentary) – Paragraph 5, Paragraph 7, Paragraph 8
• ^[7] (The Fast Mode) – Paragraph 1, Paragraph 2

Source: Noah Wire Services