As 3G sunsets become a completed chapter and 4G infrastructure begins yielding spectrum to 5G expansion, IoT OEMs are entering a new era defined not just by faster speeds, but by architectural evolution. Standalone 5G cores, network slicing, ultra-low latency, enhanced security frameworks, and emerging capability tiers like 5G RedCap and eRedCap are fundamentally reshaping what connected devices can do.
This requires a reevaluation of design practices, deployment strategy, and device management logic. For manufacturers operating in one of the world’s most advanced and congested mobile ecosystems, connectivity is no longer a background utility. It is a strategic decision that directly impacts device longevity, global scalability, monetization potential, and operational resilience.
In this article, we explore how North America’s transition from legacy networks to 5G Standalone is redefining IoT connectivity standards, and why RedCap is rapidly emerging as the new foundation for future-ready deployments. We will also unpack how Zipit Wireless helps IoT businesses maximize their devices’ potential performance and prepare for the future landscape of connectivity.
The Change to true 5G: NSA vs Standalone
When carriers began rolling out 5G networks, they did not switch to next-generation infrastructure overnight. Instead, most deployed what's known as Non-Standalone (NSA) 5G. In NSA architectures, devices connect over 5G radio access, but the network core and backhaul still use 4G infrastructure. Your device might connect to a tower using 5G protocols, but that tower is still communicating with the core network using 4G-class backhaul. This hybrid approach enabled faster 5G rollouts, but the full potential of 5G technology remained locked behind technical and logistical barriers.
True 5G architecture, known as standalone, is where both the radio access network and the core infrastructure operate on native 5G protocols. This enables advanced features and enhanced capabilities that simply weren't possible under previous generations of network design, including:
Network slicing
Network slicing allows carriers to partition defined portions of a single network into multiple virtual networks, or “slices”, each with its own dedicated performance characteristics. These slices can then be delegated to specific customers or use cases. For example, a single automotive manufacturer’s connected vehicles could operate within an exclusive, optimized “lane” within a nationwide network. Instead of competing for shared bandwidth on a generalized public network, specific traffic can be isolated and prioritized according to the unique requirements of the devices or applications. Network slicing ensures guaranteed quality of service (QoS), predictable latency, and controlled performance thresholds.
North America has one of the most advanced and heavily utilized mobile network ecosystems in the world. Urban density, high consumer data usage, and massive device proliferation create constant congestion risks. While consumer traffic is unpredictable and bursty, IoT deployments need consistent performance to succeed at scale. While some slicing-like prioritization existed in LTE environments, true dynamic slicing is most fully realized within 5G architectures. North America’s rapid 5G rollout, particularly mid-band spectrum expansion, provides the foundation for more granular, software-defined traffic segmentation.
The 5G network slicing flexibility enables carriers and enterprise customers to match connectivity performance directly to application requirements rather than forcing applications to adapt to network limitations.
Ultra-low latency
Real 5G SA can achieve millisecond latency in some applications, enabling use cases that demand near-instant response times. The near-zero lag time enhances safety and reliability.
Latency hinges on reaction time: the delay between an event occurring and the network delivering the response. In mission-critical applications, milliseconds transform the possibilities for IoT innovation. Near-instantaneous communication enhances operational safety, system reliability, and decision accuracy. It reduces the risk of failure cascades in automated systems and enables applications that simply were not feasible under higher-latency LTE constraints.
Autonomous vehicle fleets, industrial automations, remote healthcare, smart grid infrastructure, and public safety applications all rely on ultra-low latency capabilities.
Wider coverage
5G Standalone uses multi-band carrier aggregation and reduces the need for anchoring bands, enabling better uplink and downlink coverage across wider areas. This enhances coverage and performance consistency across large geographic areas, a crucial consideration in North America's diverse terrain.
Low-band spectrum provides deep building penetration and long-distance coverage, while mid-band delivers higher throughput across suburban and metropolitan regions. By intelligently aggregating these bands, carriers can provide broader and more stable connectivity footprints.
Many IoT devices are uplink-heavy, transmitting telemetry, sensor readings, or operational diagnostics. Enhanced uplink reliability improves data accuracy and reduces packet loss, especially in high-density or mobility-heavy environments.
Enhanced security
5G SA introduces improved security, encryption protocols, and mutual authentication mechanisms between devices and the network. Key enhancements include stronger subscriber authentication using advanced cryptographic algorithms, improved key management procedures, enhanced protection against identity spoofing and SIM-based attacks, and reduced exposure of permanent subscriber identifiers over the air.
These measures reduce the risk of interception, impersonation, and signaling exploitation, concerns that grow as IoT device volumes scale into the millions. This is ideal for protecting sensitive data in highly regulated industries, such as healthcare and financial information, where maintaining secure device-to-network authentication is essential for operational integrity and compliance.
5G in the North American IoT market
North America is at the forefront of network transitions. While 5G SA rollouts continue globally, carriers in the U.S. and Canada have made the most progress, with nationwide SA infrastructure already operational and expanding. For IoT OEMs planning deployments, this means the foundation for next-generation connectivity is already in place, but only if they design with SA-compatible technologies from the start.
Next-gen cellular connectivity is transforming the potential applications for IoT devices. While 5G promises incredible performance, most connected deployments do not require the enhanced features and full horsepower of the network. These fleets will immediately benefit more from the IoT-optimized 5G RedCap and eRedCap technologies. These offer a balance of performance and utility, extending power-efficient, cost-effective capabilities to IoT devices with more moderated latency and data usage demands.
Learn more: Transitioning to Cellular IoT: How to Make the Switch
5G RedCap: the entry point for IoT connectivity
As 5G SA infrastructure expands, carriers are increasingly implementing 5G RedCap (Reduced Capability). 5G RedCap bridges the gap between low-power LPWAN technologies such as LTE-M and NB-IoT and full-featured 5G. Standardized in 3GPP Release 17, this network technology was designed to replace entry-level 4G backhaul and deliver a 5G-native connection, while reducing complexity and power consumption compared to standard 5G modules.
What makes 5G RedCap different
IoT devices have predictable and specialized workloads. A fleet management sensor might be uplink-heavy, constantly sending telemetry data, but rarely receiving large amounts of information. A video surveillance camera might be downlink-heavy during software updates, but otherwise transmit compressed video streams.
RedCap recognizes this reality and streamlines usage accordingly. By reducing antenna counts, narrowing bandwidth allocations, and simplifying radio processing chains, RedCap modules deliver comparable 5G performance for IoT devices, all while reducing power consumption, hardware complexity, and cost compared to full 5G modems. This unlocks increased performance capabilities, enhanced security, and lower latency. RedCap also established future-ready deployments, supporting longer device lifecycles, simplified migration paths, and reduced risk of obsolescence as carriers sunset older technologies.
In the U.S., T-Mobile, Verizon, and AT&T claim RedCap is available or fully loaded and are no longer certifying new Cat-M1 or NB-IoT modules, further underscoring the shift to RedCap and the need for OEM adoption.
What is eRedCap?
Enhanced Reduced Capability (eRedCap) is an evolution of RedCap introduced in later 3GPP releases (Release 18 and beyond) as part of the 5G Advanced rollout. An efficient, 5G-native successor for low- and mid-tier IoT devices designed for 4G and older technologies that will need to bridge to new network infrastructure. It is essentially a more efficient middle tier between LTE-based IoT and full-scale 5G performance. eRedCap offers even lower power consumption and greater cost-effectiveness than true RedCap. Devices will be able to access power-saving abilities and use connectivity for occasional bursts of moderate data transmission, making it ideal forasset trackers, smart city sensors, and connected consumer electronics. While full 5G is designed for ultra-high throughput devices like smartphones, FWA, and AR/VR applications, many large IoT deployments do not need this level of network sophistication. eRedCap is lighter, more power-efficient, and more cost-optimized, designed to expand 5G capabilities deeper into the IoT ecosystem.
eRedCap offers an incredible opportunity for IoT devices within a specific performance class. The future of IoT connectivity will not revolve around a single “fastest” or “best” option, but rather around appropriately matched capability tiers within a programmable 5G core. Together, these initiatives are transforming the possibilities for IoT technology across professional industries and day-to-day life.
Where eRedCap fits in the connectivity spectrum
eRedCap essentially positions itself as a 5G-native alternative to LTE-M and Cat-1 bis for future-ready deployments, providing 5G core access without full 5G costs.
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Technology
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Power Use
|
Throughput
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Cost
|
Best For
|
|
NB-IoT
|
Very Low
|
Low
|
Very Low
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Simple sensors
|
|
LTE-M
|
Low
|
Moderate
|
Low
|
Mobile IoT, wearables
|
|
LTE Cat-1 bis
|
Moderate
|
Moderate
|
Moderate
|
General consumer IoT
|
|
eRedCap
|
Moderate-Low
|
Moderate
|
Moderate
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Mass 5G IoT like fleet trackers and smart agriculture
|
|
RedCap
|
Moderate
|
Higher
|
Higher
|
Industrial IoT, mission-critical applications
|
|
Full 5G
|
High
|
Very High
|
High
|
Smartphones, FWA
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LTE Cat 1 bis: Using existing infrastructure to bridge the gap
While 5G RedCap represents the future of IoT connectivity, many IoT deployments today still rely on stable, globally available 4G infrastructure. In this transitional phase, LTE Cat 1 bis has emerged as a practical, balanced option for OEMs seeking a bridge between legacy LPWAN technologies and the 5G future.
The technology addresses several pain points simultaneously. LTE Cat 1 bis operates on standard 4G LTE networks without requiring specialized infrastructure, giving it immediate global reach wherever LTE coverage exists, while allowing carriers to migrate to 5G core infrastructure seamlessly. It also supports the same power-saving modes as LTE-M, while often consuming less total energy than slower technologies. As carriers adapt to 5G but OEMs want to deploy today, LTE Cat 1 bis offers a globally viable option that doesn’t limit future choices.
Sunset of LTE-M and NB-IoT
LTE-M and NB-IoT remain operational technologies in certain global markets, like Latin America or Southeast Asia. While these technologies will not be decommissioned overnight, they are being phased out in many booming global markets, such as North America.
Several factors are driving the transition away from these LPWAN technologies:
- Spectrum reallocation: As carriers sunset 3G and older 4G infrastructure, they're repurposing that bandwidth for 5G. LTE-M and NB-IoT occupy valuable frequency bands that carriers want to reallocate.
- Operational complexity: Maintaining multiple parallel network technologies increases operational overhead for carriers. Consolidating on more advanced 5G-native technologies simplifies infrastructure management.
- Limited future development: With industry investment shifting to RedCap and eRedCap, LTE-M and NB-IoT are unlikely to see significant technical improvements or new features.
- Regulatory and commercial pressures: Some markets have already implemented restrictions on permanent roaming for LPWAN devices, complicating global deployments.
What this means for existing deployments
If you’re currently developing solutions based on LTE-M or NB-IoT devices or have devices deployed, they won’t require an immediate redesign. Still, you do need to consider a migration pathway. Having a strategy in place will reduce risk and prevent the panic of a forced migration when all carriers eventually sunset this technology.
ZipIt has helped companies develop migration plans for retiring technologies and connectivity strategies for line transfers. If you have an existing LTE-M/NB-IoT deployments or are looking to offload the complexities of connectivity management for your global fleet, we can develop a plan to future-proof your devices and simplify your operations.
How Zipit helps navigate the connectivity transition
Navigating the complexity of modern IoT connectivity presents IoT device manufacturers with many challenges. Ensuring your device strategy is future-ready, agile, and operational on the appropriate networks requires robust partnerships with IoT MVNOs that are industry-informed and equipped to handle the complexities of modern deployments. Zipit Wireless doesn't just sell connectivity; we provide strategic guidance throughout the entire device lifecycle, helping IoT OEMs launch global fleets and seamlessly manage their existing deployments
Zipit helps you build flexible connectivity architectures that evolve with the market. Through multi-network SIM strategies, eSIM capabilities, and access to emerging technologies, we ensure your devices remain viable even as network landscapes shift. We've spent over a decade helping IoT OEMs navigate network transitions—from 2G to 3G, 3G to 4G, and now 4G to 5G. As a holistic IoT partner, you receive simplified global Tier-1 connectivity management, integrated billing and monetization, and strategic guidance where you need it most.
Ready to future-proof your IoT connectivity strategy? Contact our team to discuss how we can help you navigate the transition to 5G, RedCap, and beyond, building connectivity solutions that scale with your business.
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