AT&T has commercialized access on parts of its network to the 5G reduced capacity (RedCap) technology that is set to power future-looking IoT use cases and is expected to drive growth of the IoT market.

Jason Sikes, AVP for device architecture at AT&T, explained in an interview with SDxCentral that the 5G RedCap network is initially available in Dallas and “a couple of other zones on the West Coast,” with plans to expand that reach toward eventual nationwide availability. This commercial push involved integration across the network and device ecosystem.

“The way we think about it is we have to think end to end,” Sikes said. “So making sure we've got across all aspects, the device, the chipset, the RAN [radio access network], core, how we provision, how it's set up in our system. We have to think about all of those things when we bring in new technology, any new technology in the market.”

The initial deployment is running on AT&T’s current RAN infrastructure, with plans to eventually port that support over to the carrier’s ambitious open RAN architecture.

The commercialized launch also required specific spectrum support for the RedCap service. Sikes noted that AT&T is 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.

RedCap’s position in 5G The RedCap specification was released as part of the 5G specification, which means it’s interoperable with 5G networks. It was basically designed as the 5G version of the narrowband-IoT (Narrowband Internet Of Things (NB-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.

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.

“Things like alarm panels or security POS type solutions, kind of low bandwidth requirements, industrial routers, all those sorts of areas I think are prime examples for where you could see RedCap used,” Holden said, adding there could also be use cases for body cameras and “a number of new solutions in the IT space.”

This could also play into the private 5G network space where RedCap devices could be integrated into specific use cases.

“There are always some situations where RedCap would be perfectly viable for private networks because you can have similar sort of applications in security or route-type applications where they're in a private networking environment, those solutions would need to work within that private network environment as well,” Holden said. “It makes perfect sense from that standpoint.”

Analyst firms have also pointed to use cases tied to industrial wireless sensors, wearables, smart grids and fixed-wireless access (FWA) services.

“Although RedCap will not serve all IoT applications, its potential to augment operators’ IoT offerings and to support new market segments makes it a valuable opportunity,” Stephen Burton, research analyst at Analysys Mason, wrote in a recent report.

Can 5G RedCap push IoT? AT&T first announced commercial RedCap tests last year. This involved data calls in a lab environment and in the field that used the operator’s 5G standalone (SA) network core and MediaTek’s RedCap platform connecting to that core running Nokia’s AirScale platform.

AT&T rival Verizon shortly followed suit, working with MediaTek and Ericsson on data sessions and voice calls running across Verizon’s 5G SA core and using Ericsson’s RedCap software and MediaTek’s RedCap testing platform. The sessions ran over Verizon’s C-band (3.7 GHz-3.98 GHz) time division duplex (TDD) and 850 MHz frequency division duplex (FDD) spectrum in a production 5G SA core.

Research firms have been increasingly beating the RedCap drum, noting the technology is a bright spot in the dimming IoT space. ABI Research, for instance, recently noted that IoT module growth was down 5% in 2023 compared to the previous year.

“5G RedCap is creating an opening to drive 5G device volumes in the IoT domain,” Dan Shey, VP of enabling platforms at ABI Research, noted in the report. “The calculus by the 5G supplier community is 5G capabilities — low latency, location granularity and future-proofing against LTE sunsets will convince more customers to invest in these higher revenue products.”

Dave Bolan, research director at Dell’Oro Group, earlier this 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.

Sikes said that AT&T will continue to work with its technology and commercial partners through the rest of this year on expanding the reach of the technology and then support new services.

“We'll expand the network where it makes sense and where we need to as we scale up, and we'll be looking to introduce the capabilities as quickly as possible,” Sikes said of that progress toward commercial adoption. “I think we can measure it in months, not years.”