As the industry transitions from 4G to 5G, eRedCap is emerging as the foundation for the next generation of long-life IoT.
Tel Aviv, Israel, January 6th, 2026 — Sony Semiconductor Israel (Sony) today announced its
long-term vision for 5G IoT connectivity, positioning eRedCap (enhanced Reduced
Capability) as the foundation for the next generation of global, long-life connected Altair
devices. As industries accelerate the AI revolution and mobile operators plan the retirement
of legacy networks, the transition from 4G to 5G is reshaping what is possible in large-scale
IoT deployments.
LPWA technologies, from gas and water meters to asset trackers and safety infrastructure,
have varying throughput demands that are set for operating in the field over the next 10 to
20 years. However, applications that depend on higher throughput, voice capability, or richer
data streams, such as industrial automation, next-generation safety systems, wearables, and
a new category of AI-centric consumer devices, that are shifting towards eRedCap. These
applications will focus on real-time, low power and higher throughput communication, while
traditional LPWA devices keep supporting ultra-low power and deep indoor use-cases where
only small amounts of data are sent.
“The future of IoT is clearly converging around eRedCap,” said Nohik Semel, CEO of Sony S
emiconductor Israel. “It brings the performance needed for tomorrow’s connected devices
while preserving the efficiency and longevity that industries count on. For device makers
designing for the next 10 to 20 years, eRedCap is the technology that will facilitate the move
from 4G into a fully 5G world.”
A fully 5G world means operators can finally sunset 4G and unify their networks. Today, they
must keep 2G and 4G networks alive because many legacy devices remain in the field, and
spectrum is a scarce, shared resource. eRedCap enables the gradual migration of IoT
devices to 5G, allowing operators to free up spectrum, stop maintaining parallel networks,
and eventually discontinue 4G.
Built on 3GPP Release 18, eRedCap creates a new middle ground between advanced 5G
and narrowband IoT. Compared to LPWA technology, eRedCap delivers higher data
throughput for data-heavy applications while maintaining lower complexity and cost
compared to high-throughput 5G NR implementations, all optimized for long-lasting, battery-
powered devices.
As IoT networks & devices evolve and transition to eRedCap, HD-FDD (Half-Duplex
Frequency Division Duplex) is emerging as the preferred deployment option for eRedCap
devices. HD-FDD better aligns with the design requirements for low-cost, low-power, long-
lasting 5G IoT devices due to its lower cost, simpler RF design, and better power
consumption.
“The market is actively seeking competitive 5G NR solutions that can enable the transition of
LTE Cat-1bis and higher category devices to native 5G networks. Once commercially viable
eRedCap solutions become available, we anticipate cellular carriers and market demand will
drive rapid adoption for existing use cases and device categories. We estimate the eRedCap
market could cross 50 million unit shipments by 2030. HD-FDD’s technical advantages in
reduced RF complexity align perfectly with eRedCap’s design goals, making it the logical
duplexing choice for cost-sensitive, battery-powered devices at scale. As businesses
globally accelerate their shift toward AI-based decision-making and analytics, real-time
connectivity of edge devices has become more critical than ever, positioning eRedCap as
essential infrastructure for the intelligent AI-based IoT ecosystem,” said Mohit Agrawal,
Research Director at Counterpoint Research.
As part of this long-term vision, Sony outlined the roadmap for its upcoming Altair ALT1550
5G eRedCap modem, engineered to meet the industry’s evolving requirements. Currently
undergoing advanced real-silicon testing, the chip delivers 3GPP Release 18 compliance
with eRedCap and HD-FDD optimization, plus 4G Cat-1bis/LTE-M support for dependable
deployment on existing networks and seamless backward and forward compatibility.
“Our Altair ALT1550 roadmap reflects our belief that 5G IoT must be cost-efficient, power-
efficient, and built for longevity,” added Dima Feldman, VP Product Management and
Marketing at Sony Semiconductor Israel. “This is how we help customers transition smoothly
from 4G to a sustainable 5G future.”
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