PRESS RELEASE: As global digitalization continues to gain momentum, 5G has emerged as a major development trend within the communications industry and is evolving towards 5.5G. The Internet of Things (IoT) is also rapidly advancing, with an expected surge in connections to over 100 billion in the coming years.

As a typical medium- and high-speed IoT technology in the 5.5G era, Reduced Capability (RedCap) is captivating the industry’s attention and undergoing a surge in connections. RedCap opens up new development opportunities to the communications industry by reducing the cost and power consumption of devices, while preserving essential 5G features such as high reliability, low latency, and large capacity. Now, China’s top 3 operators have implemented end-to-end commercial RedCap in more than 52 cities in China, and more than 10 operators from around the world have initiated commercial pilot projects. The number of RedCap connections is expected to surpass 100 million in the next three years.

What makes RedCap such a favored choice among the IoT industry and fuels its explosive growth?

Compared with traditional 5G devices, RedCap devices have reduced capability and complexity, but are optimized in terms of device costs and power consumption. This meets the requirements of medium- and high-speed IoT for both performance and cost. Thanks to its optimal combination of performance, power efficiency, and cost-effectiveness, RedCap presents a promising outlook for application in various domains, including IoT, smart home, and smart manufacturing.

RedCap can be effortlessly deployed on 5G SA networks through simple software configuration. With its superior network stability and reliability as well as ample capacity in the uplink and downlink, RedCap significantly enhances the connectivity experience for IoT devices, meeting user demands for low latency and high reliability. This not only opens up new business opportunities for operators, but also creates additional revenue streams.

The E2E ecosystem of RedCap has matured. Major chip vendors and module vendors are actively engaged in RedCap development and planning, and have already launched numerous commercial products. Currently, there are more than 30 types of RedCap terminals available on the market, with projections indicating a surge to over 100 by the end of 2024. In addition, the module cost is expected to drop below CNY100, consequently propelling RedCap’s expansion across diverse industries.

Large-scale deployment of Redcap across various industries fosters new connectivity capabilities

RedCap has achieved remarkable commercial milestones across various industries like industrial, electric power, and video connection.

Recently, China’s top 3 operators have implemented end-to-end commercial RedCap in more than 52 cities, such as Shanghai and Hangzhou. The operators have successfully deployed RedCap on more than 100,000 base stations, and worked with industry partners to establish a series of RedCap commercial benchmarks like Wanhua Chemical, State Grid Shandong, and Shenzhen waste classification. One example of RedCap’s widespread use is in waste classification in Shenzhen, where it has enabled end-to-end intelligent management of garbage placement, transfer, and processing. This implementation has led to reduced labor costs, enhanced management efficiency, and increased network traffic.

RedCap has garnered interest from operators across the globe, not limited to China. Leading operators in the UAE and Thailand have completed RedCap technical verification or commercial pilot, showcasing its strong technical advantages and business value.

RedCap injects new momentum to the 5.5G industry

With the evolution of 5.5G, RedCap will play an increasingly important role in propelling 5.5G industry development and invigorating the mobile economy with wider network coverage, more diversified applications, and more prosperous ecosystem.

During MWC Barcelona 2024, Huawei and global industry partners will showcase the remarkable commercial achievements and industry ecosystem of RedCap. On February 28, Huawei will participate in GSMA’s summit titled “Cellular IoT Next Steps: RedCap and 5G+X Evolution”, where leading 5G operators and industry representatives from across the globe will discuss the latest trends in the cellular IoT industry and exchange their experience on RedCap network construction and service development. The stakeholders will engage in insightful discussions on how RedCap is poised to drive growth and foster innovation within the global market.