Designing and deploying a successful IoT solution often starts with one key question:
How do I connect my devices cost-effectively and reliably?

When Wi-Fi or LoRa isn’t viable—either due to mobility needs, range, or security—cellular connectivity becomes the go-to option. It offers broad coverage, reliability, and scalability. But it also comes with decisions around network technology, hardware modules, and data costs that can quickly get complex.

At Simplex Wireless, we help companies cut through that complexity. Whether you’re deploying 100 temperature sensors or 10,000 GPS trackers, we believe your connectivity should be affordable, future-proof, and easy to scale.

Here’s a guide to the most cost-effective ways to connect your IoT devices using cellular—and where 5G RedCap fits into the picture.

Start with the Right Modem Technology

Choosing the right cellular module is the foundation of your cost structure. It determines:

• Hardware price
• Power consumption
• Data throughput
• Network compatibility

Let’s break down the best options today:

1. LTE Cat-M1 (a.k.a. LTE-M):

Cat-M1 is built specifically for IoT. It supports low-power operation, voice, SMS, and mobility across LTE networks. It’s ideal for battery-powered applications like:

• GPS tracking
• Asset monitoring
• Smart meters
• Environmental sensors

Why it’s cost-effective:
Modules are cheap, power consumption is ultra-low, and data rates (up to ~1 Mbps) are perfect for bursty sensor or location data. It’s also widely supported by all major U.S. carriers and internationally.

2. LTE Cat-1 BIS:

Cat-1 BIS is a simplified version of traditional Cat-1 LTE with single antenna support, lowering cost and complexity. It offers higher speeds (~10 Mbps) and full mobility, making it a solid option for:

• POS terminals
• Smart security cameras
• Industrial gateways
• Connected health devices

Why it’s cost-effective:
Cheaper than full Cat-1 (and 5G) modules, Cat-1 BIS balances speed, hardware simplicity, and broad compatibility on 4G LTE networks. It’s a great middle-ground option when Cat-M1 isn’t quite enough.

Avoid Outdated Tech: 2G/3G Networks Are Done

While 2G and 3G networks once dominated global IoT connectivity, those days are over.

• AT&T, T-Mobile, and Verizon have all fully shut down their 3G networks
• Most global carriers have retired 2G as well
• Module availability for legacy tech is fading, and support is disappearing

Conclusion: Any new IoT project should avoid 2G or 3G modules entirely. The hardware is outdated, the networks are gone, and even short-term use isn’t worth the risk.

Where Does 5G RedCap Fit Into the Picture?

5G RedCap (Reduced Capability) is a new specification in the 5G family designed to bridge the gap between high-performance 5G and lightweight IoT needs.

It offers:

• Faster speeds than Cat-1 (up to ~85 Mbps)
• Lower power consumption than full 5G
• Support for advanced features like network slicing and improved latency

Future scalability and integration with private 5G networks

The catch?
As of now:

• T-Mobile supports 5G RedCap in limited deployments
• AT&T and Verizon have not yet rolled out RedCap support
• Modules are still expensive (~$20–$30), and carrier certification is ongoing
• It’s not widely available in North America yet

Should you consider it?
Yes—if you’re building a future-facing device that will need years of lifecycle support and high-throughput features like video streaming, advanced edge AI, or ultra-low latency. But for most projects in 2024–2025, Cat-M1 or Cat-1 BIS remain far more cost-effective and practical.

Conclusion: The Smart Money Is on LTE-M and Cat-1 BIS

If you’re launching an IoT project today and want low cost, high reliability, and future-ready connectivity, here’s the current best practice:

• Use Cat-M1 for low-data, battery-powered devices
• Use Cat-1 BIS for mid-range applications with moderate bandwidth
• Keep 5G RedCap on your roadmap—but wait until module costs drop and broader carrier support is in place

And when it comes to SIM cards, data plans, and network access? Simplex Wireless provides low-cost IoT SIM cards that support Cat-M1, Cat-1, and LTE fallback—with no contracts, no MNO lock-in, and no bloated pricing.

We’re built for scale, simplicity, and savings—because cost shouldn’t stop innovation.

Ready to launch your IoT project affordably? Get started with Simplex Wireless today.

This article was curated by Jan Lattunen, CCO Simplex Wireless

About the Author: Jan Lattunen manages Sales and Marketing for Simplex Wireless. Jan has 20 years’ experience in working with SIM card technology and was involved in launching the eSIM in North America with major carriers and OEMs. His expertise in telecommunications is around SIM cards. On a personal note, Jan is a family man and avid cyclist with advocacy for safety in the roads. You can connect with Jan on https://linkedin.com/in/JanLattunen