The advent of 5G RedCap (Reduced Capability) has ushered in a new era of possibilities within the realm of the Internet of Things (IoT), but its potential success is anchored to the broader rollouts of 5G standalone (SA) networks. RedCap was introduced in 3GPP Release 17 and further enhanced in Release 18, designed specifically to connect IoT sensors to 5G networks with lower requirements. This promises reduced hardware and operational costs compared to legacy 5G New Radio (NR) devices. In essence, RedCap aims to address the gap between high-end and low-end IoT solutions, proving to be particularly useful for devices such as wearables, surveillance cameras, sensors, and monitors. These devices require lowered costs and extended battery lives, paired with higher data rates and reduced latency compared to what Narrowband IoT (NB-IoT) and LTE-M offer.
Potential and Forecasted Growth of 5G RedCap
Experts have been vocal about RedCap’s potential and the novel services it can introduce within the machine-type communication landscape. It sits comfortably in the middle, bridging existing low-end sensor networks and high-end devices. According to Omdia, this bridging capacity ensures RedCap’s future looks promising, predicting an explosive growth that could see RedCap reaching 963.5 million connections by 2030 as global 5G IoT connections surge. Seeing early market responses, small-scale RedCap deployments and trials have already commenced, poised to gain further momentum as embedded RedCap (eRedCap) follows a similar implementation trend.
Lifted by its ability to offer significant advancements to the IoT ecosystem, RedCap brings forth a seamless balance of cost-effective yet high-performing connectivity. For instance, IoT applications that demand optimal balance with constraints on power consumption and size, like medical monitoring devices or environmental sensors, can greatly benefit from RedCap’s advantage. The industry’s optimism rests on RedCap’s ability to scale and replace traditional solutions with enhanced data rates, battery efficiency, and network reliability, paving the way for transformative technologies in health, environment, and smart cities.
Challenges From Slow 5G SA Rollout
However, a considerable challenge shadows the growth prospects for 5G RedCap, as the slow deployment of 5G standalone (SA) core networks risks undermining its adoption. Essential for RedCap’s optimal functionality, 5G SA requires telcos to undertake significant upgrades in both their RAN (Radio Access Network) and core infrastructure. This modernization effort is seen as indispensable; without it, the promise of RedCap might suffer delays or fall short of its envisioned potential. The slow pace of 5G SA network rollouts forces stakeholders to reconsider their priorities and investment allocations, urging them not to favor 5G-Advanced at the expense of SA deployments.
Despite these hurdles, a section of the global telecom landscape has made strides toward adopting RedCap technology. By mid-2022, operators from 15 countries were actively investing in RedCap, although comprehensive 5G SA deployment was observed in just 34 countries by 61 operators. This uneven progress, with significant advances in Asia (China in particular) and the United States, contrasts the sporadic endeavors in Europe, South America, South Africa, and Australia. These disparities underscore the need for global harmonization in infrastructure upgrades to fully realize the potential of 5G RedCap technology.
Cost Implications of Implementing 5G RedCap
From a financial standpoint, the cost issue surrounding current RedCap devices cannot be ignored, adding another layer of complexity to its rollout. Mobile Experts’ Joe Madden posits a more cautious view of RedCap’s future, suggesting its modernity does not inherently translate into superiority, particularly compared to existing technologies like Cat-1.bis or Cat-M. In his assessment, current RedCap devices are priced higher than Cat-1.bis, pointing out RedCap might be seen as a step backward for low-cost IoT applications, contradicting the expectation that newer generations of technology should be more affordable.
The challenge of aligning RedCap’s benefits with cost-efficiency must be addressed. If RedCap’s pricing structure remains higher than these established technologies, its adoption rate could be significantly stifled. For RedCap technology to move past its infancy, achieving an economic balance where the benefits justify the costs remains critical. As telcos contemplate their investment in RedCap, evaluating the return on investment (ROI) against potential market demand will play a pivotal role in its widespread acceptance.
Conclusion and Future Considerations
The potential growth for 5G RedCap faces significant challenges due to the slow deployment of 5G standalone (SA) core networks. For RedCap to perform optimally, telecom companies must upgrade their RAN (Radio Access Network) and core infrastructure extensively. This upgrade is crucial; without it, the full promise of RedCap may be delayed or unattainable. The sluggish rollout of 5G SA networks prompts stakeholders to reassess their priorities and investment strategies, ensuring not to prioritize 5G-Advanced over essential SA deployments.
Despite these obstacles, parts of the global telecom industry have made progress in adopting RedCap technology. By mid-2022, telecom operators in 15 countries were investing in RedCap, although only 61 operators in 34 countries had comprehensive 5G SA deployment. This situation highlights significant advances in regions like Asia, particularly China, and the United States, while Europe, South America, South Africa, and Australia lag behind. Such disparities indicate a pressing need for worldwide coordination in infrastructure upgrades to fully harness the potential of 5G RedCap technology.
