An eSIM compatible device gives you the ability to load up to five plans at once, however you can only use one* plan at a time. You can also choose to label each of these plans in your device, for example Primary or Secondary, or Work and Personal. Plus, you can choose to set different functions for each such as making and receiving calls and messages or using data.
*An exception to this is an iPhone 13 Pro Max, iPhone 13 Pro, iPhone 13, and iPhone 13 mini where you can have two eSIMs 'on' simultaneously. More information here.
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