Invest in 5G RedCap or Stay With 4G LTE - TCO Calculator

LTE networks are on a sunset trajectory. The technology decision you make today — 4G LTE or 5G RedCap — can determine whether your infrastructure remains fit for purpose across its full lifespan. This simulator quantifies that choice in dollars.

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How to Use This Simulator

Enter your data in the Configuration Inputs panel on the left — hover the ? icon next to any field for guidance. Results will automatically compare Scenario 1 (5G RedCap now) against Scenario 2 (LTE now, migrate later).

Configuration Inputs

Hardware Costs

5G RedCap router cost ? Per-unit purchase price of a 5G RedCap router. Typically higher upfront than LTE, but avoids a forced replacement when LTE is sunsetted.

LTE router cost ? Per-unit purchase price of a 4G LTE router. Usually lower today, but may require replacement when LTE networks are retired by carriers.

Install & replacement labour ? Per-unit cost to physically install or swap a router, including field labour, travel, and any associated downtime.

Network Timeline

Years before LTE sunset ? Your estimate of when LTE networks will be retired in your region. Industry estimates typically range from 5–10 years. Default is 7.

yrs

Financial Parameters

Discount rate ? Interest rate used to determine the present value of future cash flows.

Analysis period ? Total number of years over which costs are compared. Default is 15 years.

yrs

Fleet Scale

Number of routers ? Total routers in your planned deployment. All cost figures scale linearly. Use your actual fleet size for a real-world projection.

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DEPLOYMENT TIMELINE

Scenario 1: 5G RedCap Now

Deploy 5G RedCap Year 15

Scenario 2: LTE Now → 5G RedCap Later

LTE Sunset: Year 7

Deploy LTE Year 7 Year 15

Drag the slider to adjust LTE sunset timing

Summary result

Calculating…

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ANALYSIS ASSUMPTIONS

Operational costs assumed equal between LTE and 5G RedCap (data plans, maintenance). Actual costs may vary by carrier and contract.

Performance benefits of 5G RedCap (lower latency, higher bandwidth, improved battery life) are not quantified in this financial analysis.

Time horizon: 15-year analysis with 5% discount rate applied to future costs.

NPV methodology: Scenario 2 replacement costs in year 7 are discounted to present value.

Technology lifecycle: Both technologies assumed viable for the full 15-year period.

Full Cost Breakdown

Scenario 1 — 5G RedCap now

Hardware (100 units)—

Installation—

Total NPV (PNPV) —

Scenario 2 — LTE → 5G RedCap

LTE hardware (Year 0)—

LTE installation (Year 0)—

5G hardware — NPV—

Replacement labour — NPV—

Total NPV (PNPV) —

Cost Comparison (NPV)

Scenario 1 — 5G RedCap now Scenario 2 — LTE → 5G RedCap

Per-Unit Analysis

Scenario 1 / unit

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Scenario 2 / unit

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Savings / unit (S1)

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AirLink® 5G RedCap TCO Simulator — for planning and estimation purposes only. Actual costs may vary significantly based on deployment conditions, carrier pricing, and regional factors.

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Unlock full analysis

Enter your details to access the complete cost breakdown, NPV chart, and per-unit savings analysis.

AirLink® 5G RedCap TCO Calculator — For planning and estimation purposes only.
This simulator is provided by Semtech Corporation for educative and illustrative purposes only, and the information obtained using the simulator is not, and should not be taken as legal, financial, or procurement advice, and is not a substitute for consulting a qualified professional. The results are estimates based on your input and may vary depending on the accuracy of the information provided, as well as hardware pricing, carrier agreements, installation conditions, and other factors outside Semtech's control. LTE sunset timing is an estimate only —network retirement decisions rest solely with individual carriers. Semtech makes no representations or warranties, express or implied, regarding the accuracy of any results, or any product, pricing, or technology lifecycle. Semtech accepts no liability for any losses or liabilities arising from the use or reliance of this simulator. Semtech and AirLink are registered trademarks of Semtech Corporation or its subsidiaries.
© 2026 Semtech Corporation. All rights reserved. See also: Privacy Policy

Invest in 5G RedCap or Stay With 4G LTE - TCO Calculator

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