AT&T expanded the reach of its 5G reduced capacity (RedCap) network technology to more than 200 million potential customers covered, an expansion that can now be tapped by the network’s first certified IoT device.

Jason Sikes, VP of device technology at AT&T, explained in a blog post that the carrier’s RedCap network is targeted at devices with a “streamlined subset of 5G capabilities tailored for IoT and wearables.” These devices “have less battery consumption, lower costs, and lower bandwidth requirements.”

“They offer reduced manufacturing costs and more compact form factors by featuring fewer antennas, lower processing power, less battery consumption, and simplified radio frequency components compared to full 5G devices,” Sikes added.

These device types are being targeted at IoT products for healthcare, asset tracking, industrial sensors, fleet management, and mid-speed computing devices. A Franklin Wireless mobile hotspot device is the first commercial 5G RedCap product approved by AT&T for its network, though Sikes added that the carrier is also working on certification with a handful of module providers, including Semtech, Telit Cinterion, and Rhino Mobility.

The RedCap specification was released as part of the 3GPP Release 17 5G specification, which means it’s interoperable with 5G networks. It was basically designed as the 5G version of the narrowband-IoT or LTE-M specifications used in 4G LTE.

The RedCap specification itself limits spectrum use to 20 megahertz for sub-6 GHz bands and 100 megahertz for millimeter-wave (mmWave) spectrum. This allows for simpler and smaller antenna designs with one transmitter and one or two receivers, unlike the more complex multiple-input, multiple-output (MIMO) antenna designs required for full-feature 5G new radio (NR) devices like smartphones. This allows RedCap to reduce power requirements and makes it more applicable to Edge devices that are often power-constrained.

The carrier initiated its 5G RedCap deployment in 2023, with network tests involving vendors Nokia, Ericsson, and MediaTek. These involved data calls in a lab environment and in the field that used the operator’s nascent 5G standalone (SA) network core.

That work accelerated last year with its first commercial access in a handful of markets, including Dallas and some markets on the West Coast.

Sikes at that time explained to DCD sister site SDxCentral that the carrier was initially using its 850 MHz frequency division duplex (FDD) spectrum for the service, and “adding additional plans as needed over time as we expand.”

FDD spectrum is typically fixed in splitting its channel capacity evenly between the uplink and downlink, while time division duplex technology allows operators to adjust the uplink and downlink capacity of a spectrum channel based on need.

Rob Holden, AT&T RedCap technology lead, said the RedCap service will complement the carrier’s already established LTE-M network, running as a higher-performing Edge option for customers. It also provides a longer-term roadmap for specific IoT and Edge verticals.

Is there a RedCap market?

ABI Research last year predicted 80 million RedCap modules will be shipped into the market over the next five years, with most of that growth driven by a new RedCap iteration.

The research firm noted that the 5G RedCap specification and market potential has drawn interest from chipmakers like Qualcomm, MediaTek, UNISOC, and ASR Microelectronics. These firms have been drawn to the flame that RedCap will provide a long runway in supporting low-power 5G use cases serving IoT and Edge deployments.

“5G RedCap is a series of network and device optimizations that strips back device complexity, acting as a natural successor to LTE Cat-4 and LTE Cat-6,” ABI Research analyst Jonathan Budd wrote. “It is a means of providing an affordable pathway to 5G for IoT device OEMs that do not require the full spectrum of 5G capabilities. The mid-tier LTE Categories have proven valuable in connecting IoT devices; RedCap delivers LTE-equivalent throughput performance, with assurance of network longevity into the 5G era.”

ABI noted that the next RedCap iteration, dubbed enhanced RedCap (eRedCap), will further reduce power requirements and goose adoption. This will allow eRedCap to tap into the already established field of low-powered 4G LTE use cases and account for 71 percent of the overall RedCap module market through 2029.

“As a replacement for LTE Cat-1 and Cat-1bis, eRedCap will be widely applicable in connecting devices across the IoT application landscape, and chipset and module manufacturers will seek to attain customer loyalty as early as possible,” Budd added.

The surge in RedCap interest is also set to bolster other Edge efforts.

Dave Bolan, research director at Dell’Oro Group, last year noted that the growth in RedCap adoption will also lead to greater uptake of multi-access Edge compute (MEC) platforms and services.

“The market anticipates that the growth of the MEC market will be energized by the introduction of RedCap NR (reduced capability new radio) equipped IoT devices, bringing more 5G IoT devices to the market at lower price points,” Bolan wrote.