The telecom industry is a crucial pillar of the global economy, driving connectivity for billions. With the advent of the fifth-generation mobile network (5G), the business world has embraced its promises of faster speeds, lower latency, and the capacity to connect a vast array of devices. Yet, not every application requires the full suite of 5G’s capabilities.
This is where Reduced Capability, or RedCap, comes into play.
Designed to serve devices that need lower data rates and less complexity, RedCap enables the benefits of 5G connectivity without the high cost and power demands. It is a pivotal element of the 5G ecosystem, balancing performance, cost, and energy efficiency while broadening 5G’s appeal to a broader range of use cases.
RedCap: Simplifying 5G for IoT
RedCap’s primary role is to simplify 5G connectivity for Internet of Things (IoT) devices that do not require the high bandwidth or low latency of standard 5G. These include many everyday devices, such as smartwatches, fitness trackers, and low-power sensors. Unlike high-performance applications, such as ultra-reliable low-latency communications (uRLLC) or enhanced mobile broadband (eMBB), RedCap devices use simpler hardware configurations, making them more cost-effective and energy efficient.
Sunil David, digital technology consultant and former Regional Director of IoT at AT&T India explains: “While the core pillars of standard 5G—eMBB, massive Machine Type Communications (MTC), and uRLLC—are designed for industries like healthcare, automotive, and manufacturing, many other industries need more tailored solutions. This is where RedCap steps in.”
RedCap-enabled devices feature simpler hardware designs with fewer antennas and narrower bandwidths, making them cost-effective.
“India is in the early stages of cellular IoT adoption, with developments in NB-IoT and 4G-based technologies, and RedCap is set to drive new use cases.”- RANDEEP SINGH SEKHON, CTO, Bharti Airtel
Sachin Karkala, SVP and GM of Mavenir’s RAN Business Unit, adds that “RedCap devices consume much less power than full 5G devices. This is critical for IoT systems that run on batteries, extending their lifespan and reducing the need for frequent maintenance or replacements.”
In addition to energy savings, RedCap-enabled devices feature simpler hardware designs with fewer antennas and narrower bandwidths, making them cost-effective. This approach makes RedCap an ideal solution for large-scale IoT deployments where cost, efficiency, and reliability are key concerns.
Unlocking New Use Cases
RedCap’s flexibility and efficiency open up various new use cases, particularly in industries where 5G’s full capabilities may be unnecessary or overly complex. Wearable devices, such as smartwatches and fitness trackers, are an excellent example. These devices require moderate data rates to transmit health data, notifications, and location tracking, but battery life and affordability are critical factors. RedCap provides the perfect balance, ensuring these devices stay connected while minimising power consumption.
Augmented and virtual reality devices are other areas where RedCap can significantly impact. These devices, used for entertainment, education, and professional training, require consistent data transmission but do not necessarily need the highest bandwidth that full 5G offers. RedCap can deliver reliable connectivity for these devices, allowing users to experience real-time data interaction without needing expensive, high-powered connections.
“RedCap is suitable for rural applications, where low-cost, energy-efficient devices can support sectors like agriculture, healthcare, and education.”- SANDEEP SAXENA, Head – Technology & Solutions (Mobile Networks), Nokia India
According to David, RedCap devices can also enhance video surveillance by offering cost-effective and energy-efficient security solutions, especially in factory environments and public spaces like malls, banks, hotels, and hospitals. He further pointed out that RedCap devices can help grid systems detect changes and send feedback to power generators in smart grid applications, regulating power generation and distribution in real-time.
Randeep Singh Sekhon, CTO of Bharti Airtel, notes, “The introduction of RedCap by the 3rd Generation Partnership Project, or 3GPP, was a key step towards making 5G more accessible for a new class of IoT devices. RedCap broadens the 5G ecosystem by providing low-cost, low-power solutions for industries and applications that do not require full 5G capabilities.”
RedCap’s Role in Industrial Applications
Beyond wearable technology, RedCap is also finding significant applications in industrial settings. Factory automation, asset tracking, and warehouse monitoring are areas where RedCap’s reduced-power, cost-effective approach can make a real difference. For instance, businesses can monitor the location and condition of goods in real time while minimising operational costs.
These capabilities are critical in industries like manufacturing, where energy efficiency is not just an operational goal but a regulatory and sustainability requirement. RedCap’s ability to enable IoT devices that consume less power aligns well with global sustainability goals, helping industries reduce their carbon footprints while maintaining efficiency.
RedCap can also support precision monitoring in mining, oil and gas exploration, and transportation sectors, providing businesses with real-time data streams essential for ensuring safety and operational efficiency. Its low-power, scalable connectivity ensures businesses can maintain critical communications without relying on costly infrastructure, even in remote or hard-to-reach areas.
Expanding Smart Cities and Agriculture
One of the most promising areas for RedCap is its application in smart cities, which rely heavily on connected devices to manage everything from traffic lights and public safety systems to environmental monitoring and waste management. Smart cities depend on affordable, scalable IoT solutions, and RedCap fits the bill perfectly. It enables large-scale deployments of cost-effective devices that do not require the full capabilities of standard 5G, allowing cities to implement smart solutions on a broad scale without overburdening their networks.
The global IoT market in smart cities is projected to grow from USD 148.6 billion in 2022 to over USD 931.5 billion by 2032, driven by the increasing need for connected infrastructure. RedCap allows municipalities to expand their smart infrastructure without the massive investment that full 5G would require, making it a key enabler for cities looking to modernise efficiently.
In agriculture, RedCap provides an ideal solution for precision farming, a sector that is becoming increasingly important as the world faces the twin challenges of climate change and food security. With RedCap, farmers can deploy IoT devices that monitor soil moisture, track livestock, manage irrigation systems, and measure weather conditions. These real-time insights help optimise operations, improve yields, and reduce resource waste, allowing farmers to make more informed decisions.
Sandeep Saxena, Head of Technology and Solutions (Mobile Networks) at Nokia India, explains, “RedCap simplifies the deployment of IoT devices by reducing their hardware complexity, lowering costs, and shrinking device size while maintaining the performance needed for key agricultural use cases.”
Bridging the Digital Divide with RedCap
RedCap is a vital tool for bridging the digital divide, particularly in rural and remote areas where traditional broadband solutions are either too expensive or not feasible. While full-speed 5G may not be necessary in these regions, reliable connectivity is essential for basic IoT applications such as agriculture, logistics, and healthcare. RedCap’s ability to power low-cost sensors and devices makes it an ideal solution for expanding digital access to underserved areas.
According to NSSO data, only 24% of rural Indian households have Internet access, compared to 66% in urban areas. Bridging this digital gap is both a challenge and an opportunity to unlock India’s full potential. RedCap offers a solution by providing affordable, scalable connectivity. Telecom operators are already exploring RedCap’s potential in rural regions, with its role set to grow as 5G infrastructure matures.
“RedCap devices can enhance video surveillance by offering cost-effective and energy-efficient security solutions, especially in factory environments.”- SUNIL DAVID, Digital Technology Consultant
Sekhon emphasises that India has made tremendous strides in its digital journey since the rollout of 4G, with rapid 5G expansion enabling broader coverage. RedCap will further strengthen the digital economy by bridging the gap between low-capacity use cases supported by 4G IoT technologies and the high-capacity demands of full 5G. “As RedCap evolves, it is also expected to support Non-Terrestrial Networks in the future, expanding its ecosystem and offering even more opportunities for digital inclusion in remote areas,” he explains.
Saxena adds, “RedCap is particularly suitable for rural applications, where low-cost, energy-efficient devices can support sectors like agriculture, healthcare, and education, helping to bridge the digital divide and provide critical services to underserved communities.”
Challenges to RedCap Adoption
Despite its potential, RedCap faces several challenges to widespread adoption. One major hurdle is the cost of 5G spectrum, which in India remains higher than in other countries. Additionally, the fibreisation of telecom towers—a necessary step for 5G backhaul—is still in its early stages, with only 30-40% of towers in India equipped with fibre connections. Overcoming this infrastructure bottleneck will be essential for broader RedCap deployment.
David highlights that acquiring right-of-way permissions to lay fibre across cities and towns is another challenge that needs to be addressed. “At present, 5G-compatible IoT devices are complex and expensive, limiting their suitability for widespread adoption. Lowering the costs of 5G RedCap devices is crucial to drive greater uptake.”
Moreover, integrating RedCap into India’s existing telecom infrastructure, which often includes a mix of legacy systems and proprietary software, could pose significant challenges. Telecom operators must invest in upgrades and adaptations to ensure RedCap devices work seamlessly across networks without causing disruptions.
“While RedCap is still in the early stages of deployment, it will be critical in providing cost-effective, lower-power devices for rural applications.”- SACHIN KARKALA, SVP & GM, RAN Business Unit, Mavenir
Cybersecurity is another concern. As more IoT devices come online, they present new targets for cyberattacks. Ensuring that RedCap-enabled devices are secure and that they protect user data will be critical, especially in a market as large and diverse as India’s. Sekhon highlights that while RedCap’s lower cost and broader accessibility are advantageous, achieving cost efficiencies in the terminal ecosystem will be essential for RedCap to gain traction in price-sensitive markets.
The Future of RedCap in India
Looking ahead, RedCap is expected to play a transformative role in the growth of IoT and the expansion of 5G networks. Industry analysts predict that the global cellular IoT market, currently at 1.9 billion devices, will exceed five billion by 2030, with over 70% of these devices powered by 5G-based technologies like RedCap. By lowering costs, simplifying device hardware, and offering scalable, energy-efficient solutions, RedCap is poised to unlock new use cases and extend the reach of 5G to more industries, sectors, and communities.
It holds significant potential in India, especially considering its vast rural landscape and its push for digital inclusion. Karkala notes that RedCap is still in the early stages of deployment but will be critical in providing cost-effective, lower-power devices for rural applications.
RedCap-enabled Fixed Wireless Access (FWA) Customer Premises Equipment can bring affordable connectivity to underserved areas for applications like agriculture monitoring, healthcare services, and education platforms. “It can help bridge the digital divide in India by offering connectivity solutions in regions where full-scale 5G may not yet be viable,” he says.
Agrees Saxena, highlighting that Communications Service Providers are evaluating RedCap’s potential to serve both industrial and retail use cases. He explains that RedCap will be essential for extending broadband access to remote and underserved areas, thus promoting social inclusion and contributing to economic development in these regions.
RedCap’s ability to enable IoT devices that consume less power aligns well with sustainability goals, helping industries reduce their carbon footprints.
“As India rolls out its broader 5G strategy, RedCap’s role will be crucial in supporting the massive IoT deployments necessary for digital transformation across sectors,” he adds.
David points out that while Bharti Airtel and Ericsson have successfully tested pre-commercial RedCap software in partnership with Qualcomm Technologies on a 5G Time Division Duplex, or TDD, network, India still lacks a 5G RedCap device ecosystem.
“Currently, there are no active RedCap use cases in India, but once the ecosystem matures, RedCap will bridge the gap between 4G and 5G,” he explains, adding that RedCap works only on 5G Standalone (SA) networks and since only one operator in India has a pan India 5G SA network, it would require other operators in India to complete roll-out of their 5G SA networks to make RedCap happen in the country.
Nevertheless, experts indicate that over the next five years, RedCap will gain traction as part of India’s broader 5G rollout, particularly in less dense areas where high bandwidth is not essential but reliable, cost-effective connectivity is needed. RedCap-enabled devices will expand coverage to underserved and remote areas as the ecosystem matures, helping telecom operators and enterprises scale their digital transformation efforts.
“India is in the early stages of cellular IoT adoption, with exciting developments in NB-IoT and other 4G-based technologies. RedCap is well-positioned to drive new use cases,” Sekhon says, adding that RedCap is also expected to expand offerings in the private 5G space. “As an industry, we must actively contribute to developing the RedCap ecosystem and address potential roadblocks to ensure smooth adoption and growth.”
While challenges remain, RedCap’s promise is clear: it will drive the next generation of IoT applications, making 5G more inclusive, efficient, and accessible for businesses and consumers.
By Shubhendu Parth & Dhirendra Pratap Singh
shubhendup@cybermedia.co.in