5G RedCap and the Future of IoT Connectivity

As billions of connected devices continue to shape modern life, IoT manufacturers face a constant challenge: how to balance performance, cost, and efficiency without overwhelming networks or inflating device expenses. 5G RedCap offers the solution. Positioned as a streamlined version of full 5G NR, RedCap delivers the reliability, low latency, and scalability of next-generation networks while shedding the excess cost, complexity, and power demands that often make 5G impractical for IoT.

5G RedCap unlocks new possibilities for devices that fall between the connectivity demands of LPWANs and full 5G. From smart city infrastructure and healthcare wearables to industrial monitoring systems and retail payment devices, RedCap frees devices from the bandwidth limitations of LTE-M and NB-IoT without the expense of traditional 5G modules. The result: faster time-to-market, broader deployment opportunities, and greater freedom for OEMs to design IoT solutions at scale.

In this article, we’ll break down what 5G RedCap is, how it works, and the implications of its mass adoption for the future of IoT connectivity. We’ll also explore how forward-looking partners like Zipit Wireless simplify connectivity management, eliminate ecosystem complexity for OEMs, and provide the future-proof strategies to succeed in the 5G RedCap era and beyond.

What is 5G RedCap?

5G RedCap (an abbreviation of Reduced Capability 5G) is a streamlined version of 5G designed to extend the performance benefits of the cellular network technology to a broader range of IoT devices. 

Standardized in 3GPP Release 17, RedCap was designed to make 5G’s IoT-enhancing features more widely accessible, including higher speeds, lower latency, increased reliability, and wide area coverage. Also known as 5G NR-Light, RedCap does not demand the hardware complexity, higher power consumption, or higher costs of full 5G. Through narrower bandwidth, reduced antenna count, and simplified radio processing, RedCap enables more efficient and affordable device designs. This network is ideal for IoT applications aiming to increase performance while maintaining efficiency, like wearables, tablets, industrial sectors, routers, and other connected innovations that don’t require the full performance standards of 5G.  

5G RedCap: designing for the future of IoT connectivity

5G RedCap is built on the pre-existing 5G network infrastructure, making the network a widely available, highly reliable, and easily scalable option for IoT applications. This not only reduces the cost of innovation, but it can also expedite the time to market for OEMs manufacturing IoT solutions. Through 5G RedCap, companies can easily get their devices into consumer hands and facilitate mass adoption through lower product prices and simplified, larger initial deployments. As more IoT solutions transition to RedCap, more 4G frequencies will be freed up, expanding the room on networks for other applications. 

The affordability and accessibility of 5G RedCap are likely to lead to ubiquitous global adoption. The infrastructural support is already enabled across North America, further easing deployment and incentivizing the technology’s implementation. Poised to replace Cat-M1 as 4G backhaul devices are replaced with 5G backhaul, RedCap is positioned as a future-ready solution for IoT devices looking to capitalize on the expanded network offerings promised by the network.  

What is 5G?

5G is the fifth generation of mobile network technology, designed to be faster, more reliable, and more efficient than previous generations like 3G and 4G LTE. 5G boasts much faster data speeds than previous networks, allowing near-instantaneous downloads and high-quality streaming in ideal conditions. The cellular network offers ultra-low latency (as little as one millisecond in some applications), eliminating almost any lag between sending and receiving data and allowing it to be leveraged by industries ranging from autonomous vehicles to real-time remote surgery. 

5G provides stable connections for a vast and diverse range of applications, even in crowded areas like stadiums and urban city areas. 5G uses spectrum bands, including high-frequency millimeter waves (mmWave) for ultra-fast speeds and short ranges, like fixed wireless access points, airports, and arenas. Many consumer mobile broadband and IoT applications leverage mid-band frequencies that balance both coverage and capacity. Low-bands can be used for extended long-range coverage with excellent building penetration, though they have lower data rates. 

How does 5G RedCap work?

5G RedCap uses pre-existing 5G frequency bands, but with a simplified design that reduces device complexity. Instead of wide-channel bandwidths and multiple antennas used in standard 5G devices, RedCap operates with narrower bandwidth allocations. This is typically in the range of 20 MHz in FR1 and 100 MHz in FR2, supporting fewer antennas and reduced MIMO configurations. This streamlined radio design reduces cost and power consumption. 

RedCap devices also benefit from the same core 5G network architecture as high-performance, full-5G devices, meaning they can take advantage of native 5G, like low latency, network slicing, and impressive reliability. By stripping down advanced hardware arrays and extreme throughput, RedCap is creating a middle ground between traditional lightweight IoT network technologies (like LTE-M and NB-IoT) and full 5G. 

This moderated approach ensures broad compatibility and more efficient implementation. This makes it ideal for IoT applications that require dependable connectivity without needing to invest in the overhead of full 5G performance. 

Why was 5G RedCap introduced?

5G RedCap was introduced to close a capability gap in the cellular connectivity ecosystem. Prior to RedCap, devices have typically been positioned between two polarities: low-power, low-bandwidth options and full-featured 5G devices. 

Bridging the gap between LPWANs and 5G

LPWANs (Low-Power Wide-Area Networks) like LTE-M and NB-IoT offer remarkable benefits for many IoT-enabled devices that rely on simple sensors, periodic data transmissions, and very low power consumption to achieve their deployment goals. These cellular networks propelled IoT technological innovations by facilitating massive, scalable, cost-effective global deployments. But they’ve also seen obstacles to cohesive implementation. 

These networks have also faced uneven global rollout, which presented challenges for IoT device manufacturers and designers. Different countries and geographic regions have favored different LPWANs, resulting in potential connectivity gaps for highly mobile IoT devices. OEMs can establish relationships with trusted, authorized Mobile Virtual Network Operators (MVNOs), like Zipit Wireless, to avoid coverage outages through connectivity and carrier diversification strategies. They are also unable to accommodate IoT applications with higher data demands. 

However, full 5G remains overkill for many IoT deployments. 5G offers powerful performance options, but the implementation is costly, complex, and energy-hungry. 

5G RedCap’s introduction makes 5G practical for millions of mid-complexity IoT devices and applications. It delivers a balanced mix of performance, efficiency, and cost. Its progressive adoption will unlock growth in wearables, smartphones and tablets, infrastructure, industrial IoT, consumer IoT products, and so much more. Previous constraints imposed by the limitations of NB-IoT and LTE-M or the expense of full 5G NR are eliminated with RedCap, opening up newfound innovative opportunities. 

What is the timeline for 5G RedCap?

RedCap was initially introduced as a standard in 2022 with GPP Release (Rel) 17. As of 2025, leading North American mobile carriers began launching networks, with AT&T announcing complete nationwide RedCap coverage in July 2025. Commercial rollout of RedCap continues to increase as more RedCap modules are released in the market, and the global expansion of the networks progresses. 

Within the next couple of years, more widespread adoption of RedCap is expected. As modules hit higher volume shipments and costs drop to parity with LTE-based IoT solutions, more IoT OEMs will leverage the technology for use cases that are positioned between “basic sensors” And “high-performance 5G devices”. 5G RedCap is expected to become a standard feature in international networks in this timeframe, with robust global support, and further 5G-based evolutions and optimizations.  

What is 5G eRedCap?

eRedCap (enhanced RedCap) is a lower-peak-rate variant of RedCap intended to simplify costs and complexities even further, offering even lower power consumption, cost-effectiveness, and moderate data rates (around 10 Mbps). 5G eRedCap builds on the foundation of RedCap, as standardized in Rel 17, but takes the simplification another step further to deliberately reduce peak rates, drive down costs, and allow for smaller form factors for IoT devices. 

Introduced in 2024 with 3GPP Release (Rel) 18, eRedCap is designed to replace older 4G LTE IoT technologies and provide a smooth connectivity transition path to 5G for devices like basic wearable technologies, smart meters, and industrial sensors. These applications often favor battery efficiency and massive deployment over extreme speeds and data rates. Device OEMs can face budgetary constraints and operate with mid-to-low data rates without requiring the full high-performance capabilities of 5G. 

5G eRedCap will provide a more efficient, 5G-native successor for low- and mid-tier IoT devices as 4G networks eventually sunset and aid in pushing 5G RedCap connectivity into massive scale without overwhelming resources. Many module vendors and chipmakers are currently prototyping designs and imagining the early stages of an IoT eRedCap ecosystem. The network’s commercial adoption is expected to accelerate as module costs drop and carriers integrate eRedCap support into 5G Standalone networks. eRedCap is also expected to accommodate ultra-power saving modes like eDRX (Extended Discontinuous Reception). 

In tandem with standard RedCap, eRedCap is predicted to replace LPWANs like LTE-M and NB-IoT over time while accessing the scalability and future-proofed longevity of 5G networks. 

What innovations does RedCap bring to IoT devices?

5G RedCap brings numerous innovations that unlock new possibilities for IoT device manufacturers. More than merely a “light” version of 5G, RedCap introduces innovations that make connectivity accessible to millions of IoT devices that were previously limited from accessing full-featured 5G. These enhancements lower barriers for OEMs and open new possibilities for how IoT is deployed at scale. 

Cost-effective 5G modules

By streamlining hardware complexity, including fewer antennas, narrower bandwidth, and simpler radio processing chains, RedCap significantly reduces module costs. Traditional 5G modules are often too expensive for high-volume IoT markets, but RedCap lowers the entry point while maintaining many of 5G’s advantages. 

This enables practical next-generation connectivity for devices like smart meters, consumer IoT, wearable technology, manufacturing and construction sensors, and industrial IoT, all industries where cost has historically been a major barrier to widespread adoption. 

Extended battery life

Energy efficiency is another core innovation of RedCap. Streamlined processing requirements and optimized signaling reduce power draw. Enhancements in power efficiency allow multi-year device operations to run on batteries, a requirement for many remote, widely dispersed, and otherwise hard-to-service IoT deployments. This is critical for energy sector applications like pipeline sensors, agricultural monitoring, and wildlife cameras. RedCap enables devices to operate reliably for extended periods without maintenance or physical battery replacements.

5G RedCap is designed to support ultra-low power consumption through simplified device designs and reduced bandwidth requirements. These devices previously typically used 3G or 4G/LTE, as these applications are often more cost-sensitive and opted for more affordable modems. By reducing expenses, RedCap expands the market’s scope.  

Future-proof connectivity

RedCap is built directly into the 5G ecosystem, unlike LTE-M or NB-IoT. This means devices can benefit from 5G-native features, including low latency, network slicing, and higher reliability, while still operating in a cost-efficient mode. Just as importantly, RedCap devices won’t face the premature obsolescence as 4G-based technologies when carriers eventually sunset LTE networks. For IoT OEMs, this ensures long-term viability, extended device lifecycles, and a  smoother evolutionary path into future network generations, like 5G and 6G.

Broad application range

5G RedCap unlocks a wide variety of applications. Serving the middleground of IoT use cases, RedCap is ideal for deployments that need more than the ultra-low-bandwidth offered by NB-IoT but don’t require gigabit 5G speeds to function optimally. 

• Industrial IoT:  5G RedCap enables cost-effective deployment of connected sensors, robotic controllers, and machine monitoring systems. 

• Video surveillance: Near real-time transmission of video footage from security cameras will create improved security, threat detection, and reliability for IoT-powered surveillance technologies. 

• Healthcare: This technological step forward supports wearable healthcare technologies, remote patient monitoring devices, and maintains low power consumption while possessing enough throughput to handle sensitive patient health data. 

• Retail: RedCap is ideal for POS terminals, kiosks, and vending machines that need reliable cellular connections to process payments, maintain uptime, and deliver seamless checkout experiences to their customers. 

• Smart cities: The network allows for IoT-connected traffic cameras, environmental sensors, and safety and surveillance systems to operate efficiently without the burden of full 5G costs, as many municipalities are unable to affordably implement these advancements at scale on full 5G. 
• Consumer electronics: By lowering costs, 5G RedCap will create untold opportunities for innovation in the consumer IoT space. Everything from wearables to tablets to AR/VR devices will benefit from the reduced costs coupled with improved performance metrics. For example, smartwatches are expected to see immediate RedCap adoption, with Apple confirming that three of its popular smartwatches will support 5G RedCap. Tier-1 Carriers Verizon, AT&T, and T-Mobile have all confirmed they will support these new watches using this technology. 
  
  

  Network efficiency at scale

RedCap is optimized for spectrum efficiency and streamlined signaling, which means RedCap devices consume fewer network resources compared to standard 5G devices. This allows operators to support massive IoT deployments encompassing millions of devices within a given region, without overwhelming networks or compromising reliability or performance. RedCap provides a balance, ensuring 5G networks remain flexible, sustainable, and scalable as IoT adoption accelerates worldwide and technological innovation expands the scope of what’s possible.

How does 5G RedCap compare to other connectivity types?

Every network connectivity type offers unique advantages and limitations. Some prioritize ultra-low power consumption at the expense of throughput, while others deliver lightning-fast performance but come with a significant price tag. 

5G RedCap positions itself in the midground of IoT connectivity options. It promises more powerful, future-ready capabilities than NB-IoT and LTE-M, but it is far more affordable and efficient than full-scale 5G NR. This balance makes RedCap ideally suited for a diverse range of IoT applications that demand reliability, moderate data rates, and extended battery life at an accessible price point.

In comparison, NB-IoT and LTE-M are excellent for simple, low-power devices that don’t need throughput for more complex applications. LTE Cat 1 bis is a cost-effective 4G option that lacks native 5G features and the long-term future-proofing promised by 5G NR. Full 5G is the most advanced connectivity option, but it is often overkill for IoT applications that emphasize cost and efficiency over gigabit speed. 

5G RedCap connectivity comparison

RedCap offers a combination of affordability, performance, and longevity, directly unlocking new possibilities while keeping IoT deployments practical and scalable. 

Prepare for the future of IoT connectivity. Power your solution with Zipit Wireless.

As 5G RedCap-powered connectivity increasingly defines the horizon of IoT innovation, partnering with future-ready connectivity providers is foundational for success and longevity. Zipit Wireless is expertly positioned to prepare IoT device OEMs for the wealth of opportunities ushered in by 5G RedCap and eRedCap. Our connectivity services support a wide range of data applications on any network technology across the globe.

We remain keenly attuned to the perpetual developments in the IoT space, remaining agile and responsive to the many changes. We immerse ourselves in the complexities so our clients are free to pour their attention into maximizing their deployments. A partnership with Zipit Wireless ensures faster time-to-market, mitigated risk, and connectivity solutions that easily scale with your business’s needs. 

Simplified connectivity management

Rather than forcing manufacturers to balance dozens of carrier contracts, billing cycle challenges, and disparate connectivity platforms, Zipit offers a turnkey, streamlined solution. Global cellular connectivity, device activation, and SIM management are all readily managed through one unified portal. This singular dashboard simplifies device activation, usage tracking, provisioning, customer management, and more, all while offering data-driven insights that inform tactical business decisions. With these tools, OEMs can focus on building products that leverage 5G RedCap’s power rather than the underlying complexity of connectivity logistics. 

Learn more: 10 Key Features of an IoT Connectivity Management Platform

Streamlined billing solutions

Beyond connectivity, Zipit helps OEMs unlock new revenue streams with streamlined billing solutions purpose-built for IoT. Our platform makes it easy to launch subscription-based services, usage-based plans, or pay-per-use models without the burden of building complex billing infrastructure in-house. Automated invoicing, tax handling, and customer self-service portals eliminate administrative headaches, while real-time visibility into device usage ensures accurate, transparent billing. With Zipit, IoT companies can quickly monetize their RedCap-enabled devices, improve customer experience, and scale recurring revenue, all from a single, unified system.

Learn more: Are Telecom Expense Management Systems a Fit for IoT Business Models?

Tier-1 carrier access

Zipit offers Tier-1 carrier partnerships that provide strong coverage across North America, a market where RedCap adoption is accelerating. We also offer comprehensive worldwide connectivity options and assist in sustainable, profitable global expansion strategies. Our established carrier relationships offer resilience, flexibility, and ongoing support for devices regardless of the network technologies they employ. We recognize every IoT enterprise is unique, and we are here to give IoT OEMs access to the right networks for every distinct deployment, even as RedCap and other technologies elevate market expectations.  

Contact us and explore how we can help you prepare for network technology sunsets, leverage 5G RedCap and eRedCap, and embrace the future of IoT connectivity.

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