The 4G/5G IoT problem RedCap solves
For the last decade, IoT cellular has lived on Cat-1bis, Cat-4, and Cat-M1/NB-IoT modems. The economics worked: Cat-4 modems cost $5-15 in volume, drew acceptable current for fleet and metering applications, and ran on 4G networks that carriers were investing in. Most of the world's 50 million-plus deployed cellular IoT devices use this generation of cellular technology.
That assumption is breaking down. Carriers globally are publishing 4G-only cell-site sunset roadmaps, repurposing 4G spectrum for 5G refarming, and (in some markets) actively withdrawing Cat-1bis and Cat-M1 service. AT&T and Verizon have published timelines. UK MNOs are following. By the late 2020s, devices specified today on Cat-4 will need a hardware refresh or a connectivity downgrade.
The obvious answer is to specify new IoT devices on full 5G NR. That works technically, but the economics don't: full 5G NR modems cost $40-80 in volume (5-10x Cat-4), draw substantially more current, require more antenna paths, and saddle the device with capability the IoT workload doesn't need. Specifying a fleet telemetry tracker with a full 5G NR modem to send 50 MB/day of telemetry is like flying first-class to deliver a postcard.
3GPP's answer is Reduced Capability NR (NR-RedCap), introduced in 3GPP Release 17 and now reaching commercial deployment. RedCap is purpose-built to fill the gap between Cat-4 LTE and full 5G NR for IoT and mid-tier mobile workloads.
What RedCap actually is
RedCap is a profile of 5G NR with deliberately reduced capability to lower modem cost, power consumption, and complexity. The reductions are technical:
- Reduced bandwidth. RedCap supports up to 20 MHz channel bandwidth versus full 5G NR's 100+ MHz. Sufficient for the target workloads, dramatically simpler RF chain.
- Reduced antenna paths. RedCap supports 1 or 2 receive antenna paths versus full 5G NR's 4-8. Lower component count, smaller PCB footprint, less device-side complexity.
- Reduced peak throughput. Up to roughly 220 Mbps DL / 100 Mbps UL on RedCap versus multi-Gbps on full 5G NR. Still vastly more than Cat-4 (150 Mbps DL / 50 Mbps UL theoretical, ~50/15 real-world).
- Reduced MIMO complexity. RedCap omits some of the advanced MIMO modes used by full 5G NR for peak data rates.
- Power-saving mode features. RedCap inherits 5G NR's eDRX and PSM low-power features, with profiles tuned for IoT-class duty cycles.
The result is a 5G NR modem class with a cost structure approaching Cat-4 LTE, power consumption better than Cat-4 in low-duty-cycle modes, and the carrier-roadmap durability of full 5G NR. For most IoT workloads, that combination wins.
RedCap vs Cat-1bis vs Cat-4 vs full 5G NR
| Class | Peak DL | Peak UL | Network | Modem cost | Carrier roadmap |
|---|---|---|---|---|---|
| Cat-1bis | 10 Mbps | 5 Mbps | 4G | Lowest | Sunset risk |
| Cat-4 LTE | 150 Mbps | 50 Mbps | 4G | Low | Sunset risk |
| Cat-12 LTE-A | 600 Mbps | 150 Mbps | 4G | Mid | Sunset risk eventually |
| Cat-20 LTE-A | 2 Gbps | 200 Mbps | 4G | Mid-high | Sunset risk eventually |
| 5G NR RedCap | ~220 Mbps | ~100 Mbps | 5G | Approaching Cat-4 | Future-proof |
| Full 5G NR | 4+ Gbps | 1+ Gbps | 5G | High | Future-proof |
Why this matters strategically
The RedCap value proposition has three parts and each one matters separately to a different stakeholder.
For IoT device manufacturers and integrators
The bill-of-materials cost differential between Cat-4 and full 5G NR has been the structural reason why most IoT devices are still specified on Cat-4. RedCap collapses that differential. A device that would have shipped on Cat-4 (because Cat-20 LTE-A or full 5G NR cost too much per unit) can now ship on RedCap with the same per-unit economics and the carrier-roadmap durability of 5G NR. That decision moves from "we'd love 5G but can't afford it" to "5G RedCap is the obvious choice".
For fleet operators and IoT estate managers
Devices specified on Cat-4 today face a hardware refresh in 5-10 years as carrier 4G sunset progresses. Devices specified on RedCap today survive that transition without refresh. Over a 100,000-device fleet, the avoided refresh cost is substantial. RedCap is the strategic hedge against carrier sunset planning that's already publicly announced.
For mobile network operators
Carriers want 5G traffic on 5G infrastructure to justify 5G capital investment. They don't want to keep operating parallel 4G IoT networks indefinitely. RedCap moves IoT off 4G onto 5G without forcing customers to absorb full 5G NR modem costs. Carriers will (and already do) actively prefer RedCap deployments via tariff design, partner programmes, and carrier-side optimisation.
Where RedCap fits: use cases
Fleet telematics
Vehicle tracking, driver behaviour monitoring, fuel and engine telemetry, dash camera uplink. Workloads typically need 1-50 MB/day per vehicle in steady state, with bursts during incident upload. RedCap's 200+ Mbps peak handles incident video upload comfortably; eDRX low-power modes preserve battery between transmissions. The natural successor to current Cat-4 fleet trackers.
Smart metering
Electricity, gas, water, district heating, environmental sensing. Workloads are tiny (kilobytes per day), but devices are deployed in their millions and need to last 10-15 years on battery or grid-mains-backup. RedCap's deep-sleep modes plus 5G network durability make it the right tier for next-generation smart meter rollouts. Cat-M1/NB-IoT will continue to serve the lowest-tier metering, but RedCap covers the metering workloads that need occasional higher-bandwidth transmission (firmware updates, demand-response signalling, distributed energy resource control).
Retail point-of-sale and EV charging
POS terminals, EV charge point connectivity, vending and kiosk, digital signage. Workloads are small but transactional reliability matters. RedCap delivers carrier-grade 5G connectivity at modem economics that scale across hundreds of thousands of endpoints. The right tier for POS estates planning a multi-year refresh away from Cat-4.
Body cameras and wearable telemetry
Police body cams, healthcare wearables, lone-worker safety devices, asset trackers with video upload. RedCap's higher peak throughput (vs Cat-4) handles incident video and audio upload; the low-power modes preserve battery during normal operation. The successor tier for wearable cellular IoT.
Industrial IoT and remote monitoring
Pipeline monitoring, oil and gas, agricultural machinery, weather stations, water-quality sensors, container tracking. The combination of 5G durability, modest bandwidth needs, and low-power modes maps directly to industrial IoT requirements. RedCap is what large-scale industrial IoT will migrate to over the next 5-10 years.
Video doorbell and consumer IoT
Cellular-connected video doorbells, security cameras, home monitoring. Workloads need video upload bandwidth (Cat-4 was marginal; RedCap is comfortable) but consumer-device economics (RedCap fits where full 5G NR doesn't). Expect the next generation of cellular consumer IoT to ship RedCap by default.
The Peplink BR1 Mini RedCap
Peplink's first RedCap router is the MAX BR1 Mini RedCap, ordering SKU MAX-BR1-MINI-5GRC-P-T-M-PRM. It enters general availability in 2026; The Tech Factory has it on pre-launch reservation.
The BR1 Mini RedCap takes the existing BR1 Mini chassis (the same chassis used by BR1 Mini LTE and BR1 Mini 5G) and substitutes a 5G NR RedCap modem. That deliberate decision matters: the rest of the platform (Peplink router OS, InControl 2 cloud management, SpeedFusion bonding entitlement, PrimeCare service architecture, mounting and antenna ecosystem) remains identical to the BR1 Mini LTE and 5G variants. Customers running BR1 Mini estates today can spec RedCap variants for new deployments without changing their operational model.
Specifications:
- Cellular: Embedded 5G NR RedCap modem (sub-6 GHz)
- Throughput: Up to ~220 Mbps DL / ~100 Mbps UL theoretical; real-world dependent on carrier and coverage
- Form factor: BR1 Mini chassis (compact, fanless, vehicle-class power input)
- Management: InControl 2 cloud management with Cloud Provisioning
- Care plan: 1-Year PrimeCare bundled (PRM-B tier renewal)
- Variants: 4 ordering variants covering regional band sets and POE/non-POE power options
The Peplink decision to lead with the BR1 Mini chassis matters strategically: it's the most-deployed Peplink mobile router by volume, used across fleet, light commercial, kiosk, and IoT applications. Customers who already trust the BR1 Mini for Cat-4 or 5G NR deployments can adopt RedCap on familiar hardware. That's the right way to introduce a new cellular tier into a deployed product line.
Deployment considerations
Carrier coverage
RedCap runs on 5G networks. That means RedCap coverage equals 5G coverage at the deployment site. In dense urban areas with mature 5G mid-band rollout, RedCap coverage is excellent. In rural and offshore deployments where 5G hasn't been deployed, RedCap won't connect. For mixed-coverage fleets, the practical answer is a mixed estate: RedCap units in 5G-covered areas, BR1 Mini 5G with Cat-20 LTE-A fallback for routes that traverse coverage gaps.
Carrier plan support
Not every carrier IoT plan currently provisions for RedCap-class devices. The plan needs to recognise the device modem class and authorise it on the 5G data plane. UK MNOs (EE, O2, Vodafone, Three) are progressively adding RedCap support to their IoT M2M plans. North American carriers (AT&T, Verizon, T-Mobile) are doing the same. Confirm RedCap plan support with your carrier account manager before specifying a fleet rollout.
5G core dependency
RedCap requires a 5G Standalone (SA) or NSA 5G core depending on the carrier deployment. Most UK and European carriers have 5G NSA broadly deployed; SA rollout is in progress. RedCap functionality is fully supported on NSA cores; some advanced 5G features (network slicing) require SA. For most IoT workloads NSA is sufficient.
Antenna sizing
RedCap modems support 1 or 2 receive antenna paths (versus 4 for full 5G NR). Antenna selection is correspondingly simpler: a 2x2 MIMO antenna covers RedCap fully. The BR1 Mini RedCap pairs naturally with the Mobility 22G compact dome (£179) for vehicle-mount, or external paddle antennas for kiosk and pop-up deployments.
Hardware lifecycle planning
RedCap is the right cellular tier for IoT and mid-tier mobile deployments planned for 7-12 year lifecycles. Devices specified today on RedCap survive carrier 4G sunset planning, leverage 5G network investment, and avoid the cost overhead of full 5G NR. For deployments planned for shorter lifecycles (sub-3 year), Cat-4 still works economically; for higher-bandwidth mobile deployments (live video, broadcast contribution), full 5G NR (e.g. BR1 Pro 5G or BR2 Pro 5G) remains the right call.
Talk to us about RedCap
The Tech Factory has the BR1 Mini RedCap on pre-launch reservation. We're working with multiple fleet, IoT, and POS customers on RedCap design-in for 2026 rollouts. If you're evaluating RedCap for a fleet refresh, IoT estate plan, or new product specification, talk to us before you commit to architecture.
Email info@thetechfactory.co.uk with the deployment context (fleet size, current cellular tier, target rollout window, carrier preferences) or call +44 (0)1788 550000 for a same-day technical conversation.
Reserve BR1 Mini RedCap units
The Tech Factory has BR1 Mini RedCap on pre-launch reservation. Lead times will be confirmed against carrier RedCap plan availability and Peplink production scheduling.