Nick Wood,Freelance writer

July 9, 2026

2 Min Read

It has partnered with French aerospace giant Thales to launch an eSIM offering based on the GSMA SGP.32 standard, which enables customers to download and activate SIM profiles from available mobile networks on their IoT devices.

The solution is integrated into Kite, Telefónica's managed IoT connectivity platform, which provides customers with the means of selecting their preferred network, managing subscriptions, and keeping tabs on their global IoT connectivity.

The launch of SGP.32 and the subsequent rise of remote eSIM provisioning has led some telcos to tweak their approach to the global IoT market.

Research firm Transforma Insights this time last year heralded the emergence of so-called eSIM orchestrators that manage the complexities of global IoT connectivity on behalf of their clients.

Responsibilities are not limited to billing, customer support and eSIM profile management. They also include understanding the diversity of different cellular networks in different markets and their varying capabilities, and ensuring regulatory compliance in different countries when it comes to matters like eSIM localisation and data sovereignty.

Related:Cellular IoT connections to reach 5.9 billion by 2035

It represents an opportunity for telcos to capitalise on the eSIM market even if their networks aren't being used for last-mile connectivity.

"At Telefónica, in line with our purpose of becoming the best gateway to digital technologies, we continue to evolve our connectivity portfolio with the most innovative services on the market," said Juan José González Menaya, head of IoT connectivity at Telefónica Tech.

"With this new eSIM solution, we are strengthening our commitment to offering advanced, global and flexible connectivity that can adapt to the challenges of an increasingly demanding IoT market. Customers will be able to manage their operations with complete autonomy, without the need for specialist resources, and with the assurance that all orchestration capabilities are fully integrated into our systems."

Other telcos besides Telefónica have cottoned onto this idea of becoming an eSIM orchestrator.

MEA-focused connectivity provider Hayo last autumn rolled out a white-label eSIM platform that supports SGP.32 and is designed to serve IoT customers as well as the consumer and enterprise comms markets.

In April 2025, Belgian carrier BICS also launched an eSIM orchestration platform, eSIM Hub. That arrived shortly after Dutch incumbent KPN added SGP.32 support to its IoT connectivity portfolio.

Telefónica's decision to work with Thales, which is big name in the cybersecurity market, lends an extra degree of credibility and trustworthiness.

Related:AT&T's connected car unit boosted by Rivian, LiveOne partnerships

"We are proud to support Telefónica in driving the next phase of secure IoT adoption worldwide," said Eva Rudin, EVP of mobile connectivity solutions at Thales. "By combining our cybersecurity expertise and leadership in eSIM with Telefónica's strong IoT ecosystem, we enable companies to deploy and manage connected devices with confidence, at scale, and in full compliance with international standards."

Transforma predicts global IoT connections will reach 48 billion by 2035; however, cellular represents a fairly small proportion of that total – around 6.8 billion. Given that connectivity revenues from IoT are not exactly huge, the orchestrator role could prove to be a savvy means of capturing greater amount of value from this opportunity.

About the Author

Nick Wood

Freelance writer

Nick is a freelancer who has covered the global telecoms industry for more than 15 years. Areas of expertise include operator strategies; M&As; and emerging technologies, among others.