5G RedCap and Fixed Wireless Access (FWA): Key Drivers of Growth in 2025

As we head into 2025, the 5G landscape is evolving rapidly, with significant momentum expected around 5G RedCap and Fixed Wireless Access (FWA). The latest insights from GSMA Intelligence highlight major trends shaping the mobile industry, focusing on speed-based 5G subscriptions, enterprise growth, and innovations in IoT and eSIM technologies.

Speed-Based 5G Subscriptions: A Game Changer

One of the most notable shifts in 5G is the move toward pricing models based on speed tiers rather than data consumption. With consumers increasingly relying on 5G for high-bandwidth applications like streaming, online gaming, and video conferencing, this approach addresses growing demand for faster speeds and greater service stability.

Key insights from GSMA Intelligence:

• 82% of users report that 5G has met or exceeded their expectations.
• Rising satisfaction with 5G opens opportunities for innovative consumer propositions tied to faster speeds.
• Mobile operator CAPEX is projected to hit $180 billion in 2025, fueling continued infrastructure expansion.

5G RedCap: Driving IoT and Enterprise Growth

While 70% of operator revenues stem from the consumer segment, enterprise use cases and IoT are emerging as significant growth drivers, especially with the rollout of 5G Reduced Capability (RedCap).

Why 5G RedCap Matters

• IoT Connectivity Growth: GSMA predicts 26 billion IoT connections by year-end, with a 46-54 split between consumer and enterprise.
• RedCap Applications: From passive IoT and satellite IoT to cost-effective fixed wireless solutions, RedCap technology offers operators a $400 billion addressable market in B2B services.
• Cost Efficiency: RedCap is also pivotal for reducing costs in 5G fixed wireless deployments, especially in areas with limited broadband infrastructure.

FWA Expands Digital Inclusion

Fixed Wireless Access (FWA) continues to gain traction as a cost-effective alternative to traditional broadband.

• By September 2024, 139 operators in 68 countries had launched 5G FWA networks.
• Governments increasingly rely on FWA to bridge digital divides, aligning with national digital inclusion initiatives.
• FWA provides operators with a scalable revenue stream, complementing consumer-focused 5G services.

Consumer Trends: Brand Loyalty and eSIM Growth

In the consumer space, brand loyalty and the rise of eSIM technology are shaping the future of 5G devices.

Key Trends

• 78% of mobile users plan to stay with the same smartphone brand, though innovation opportunities remain as 22% are open to switching.
• eSIM Adoption: Penetration is already at 30% in the US, driven by eSIM-only iPhones, with GSMA forecasting 70% year-on-year growth in eSIM connections for 2025.
• IoT Integration: New eSIM standards are driving adoption in sectors like automotive and smart devices, promising further expansion in IoT.

The Road Ahead: 5G’s Impact on Digital Transformation

As 5G matures, technologies like RedCap, FWA, and eSIM are redefining connectivity for both consumers and enterprises. These advancements not only promise enhanced speed and stability but also open new revenue streams and opportunities for innovation across the IoT, enterprise, and consumer segments.