5G Enterprise Migration: Cost Analysis & ROI Guide for 2026
Complete breakdown of private 5G network costs, deployment strategies, and how to calculate ROI for enterprise 5G migration.
5G Enterprise Costs: Quick Summary
Private 5G networks cost $250K-$1M+ for initial deployment with $5K-$25K/month ongoing. The enterprise 5G market is growing at 35.5% CAGR, reaching $152.7B by 2035. ROI is typically 3-5 years for manufacturing and logistics.
Key Takeaways:
- Private 5G: $250K-$1M+ initial, $5K-$25K/month ongoing
- CBRS spectrum: $10K-$50K/year vs licensed at $100K+
- 5G small cell: $5,000-$15,000 covers 10,000+ sq ft
- Enterprise 5G market: $7.3B (2025) → $152.7B (2035)
- ROI timeline: 3-5 years for manufacturing/logistics
- Best for: Large outdoor areas, mobile assets, low-latency industrial
What is Private 5G Network?
A private 5G network is a dedicated cellular network deployed for a single organization, providing enterprise-grade wireless connectivity with low latency (1-10ms), high bandwidth (up to 10 Gbps), and massive device density (1 million devices per sq km). Private 5G costs range from $250,000-$1M+ for initial deployment using CBRS or licensed spectrum. The enterprise 5G market is projected to grow from $7.3 billion in 2025 to $152.7 billion by 2035 at a 35.5% CAGR.
How much does private 5G cost for enterprise?
$250K-$1M+ for initial deployment, plus $5,000-$25,000/month ongoing. Costs vary by coverage area, capacity needs, and spectrum approach (CBRS at $10K-$50K/year vs licensed at $100K+).
Enterprise 5G is moving from pilot projects to production deployments. With the market projected to grow from $7.3 billion in 2025 to $152.7 billion by 2035 (35.5% CAGR), understanding 5G costs is critical for enterprise network planning.
This guide breaks down private 5G network costs for 2026, including spectrum options, infrastructure investments, and real-world ROI expectations. Whether you're evaluating 5G for manufacturing automation, logistics optimization, or campus connectivity, understanding the true cost is essential for your telecom expense management strategy.
5G Enterprise Market Overview 2026
Top Industries Driving Enterprise 5G Adoption
Manufacturing
AGV/AMR control, predictive maintenance, AR/VR training, digital twins
Logistics
Real-time tracking, warehouse automation, fleet management
Ports & Airports
Large outdoor coverage, vehicle connectivity, security systems
Rapid Market Evolution
5G enterprise solutions are evolving rapidly. Prices have dropped 20-30% since 2024, and managed service options are becoming more accessible. Always get current quotes as the market continues to mature.
Private 5G Network Cost Breakdown
Spectrum Costs
- CBRS PAL license$10K-$50K/year
- CBRS GAA (shared)Free (SAS fees)
- Licensed spectrum$100K+/year
- SAS management$1K-$5K/year
Infrastructure Costs
- 5G small cell (indoor)$5K-$10K each
- 5G small cell (outdoor)$10K-$15K each
- Core network (on-prem)$50K-$200K
- Edge computing$25K-$100K
| Cost Component | Small Deployment | Medium Deployment | Large Deployment |
|---|---|---|---|
| Coverage area | <50,000 sq ft | 50K-500K sq ft | >500K sq ft |
| Radio units needed | 5-10 | 10-50 | 50-200+ |
| Initial investment | $250K-$400K | $400K-$750K | $750K-$2M+ |
| Monthly operating cost | $5K-$10K | $10K-$20K | $20K-$50K+ |
Typical Scenario:
A 200,000 sq ft manufacturing facility deploying private 5G for AGV control and IoT sensors typically invests $400K-$600K initially with $12K-$18K/month ongoing costs. This replaces legacy WiFi infrastructure and enables new automation use cases.
5G vs WiFi 6E: Cost Comparison
The choice between private 5G and WiFi 6E depends on use case requirements, not just cost. Here's how they compare:
| Factor | WiFi 6E | Private 5G | Winner |
|---|---|---|---|
| Cost per access point | $50-$150 | $5,000-$15,000 | WiFi |
| Coverage per unit | ~2,500 sq ft indoor | 10,000+ sq ft | 5G |
| Outdoor coverage | Limited | Excellent | 5G |
| Latency | 10-30ms typical | 1-10ms | 5G |
| Mobility/handoff | Challenging | Seamless | 5G |
| Device density | ~200/AP | 1M/sq km | 5G |
WiFi 6E is Better For:
- •Standard office environments
- •Small to medium indoor spaces
- •Stationary device deployments
- •Budget-constrained projects
Private 5G is Better For:
- •Large outdoor/campus areas
- •Mobile assets (AGVs, forklifts)
- •Ultra-low latency applications
- •Massive IoT deployments
5G Deployment Strategies for Cost Optimization
1. CBRS vs Licensed Spectrum
CBRS (Citizens Broadband Radio Service) is the most cost-effective option for most enterprises. CBRS Priority Access Licenses (PALs) cost $10K-$50K annually vs $100K+ for licensed spectrum. CBRS works well for single-site deployments where you control the radio environment.
Recommendation: Start with CBRS GAA (free tier) for pilots, upgrade to PAL licenses for production deployments requiring guaranteed spectrum access.
2. Phased Deployment
Reduce upfront costs by deploying in phases. Start with a pilot zone covering high-value use cases, prove ROI, then expand coverage. This approach typically reduces Year 1 investment by 40-60% while validating business case.
3. Network-as-a-Service (NaaS)
Private 5G NaaS options are emerging, converting CapEx to OpEx. Monthly costs of $15K-$50K can replace $500K-$1M+ upfront investments. NaaS shifts technology risk to the provider and includes ongoing management.
Trade-off: NaaS typically costs 20-30% more over 5 years but provides flexibility and reduces technology obsolescence risk in a rapidly evolving market.
ROI Analysis: When 5G Makes Financial Sense
5G is a Good Investment When:
- +Large outdoor areas need reliable connectivity
- +Mobile assets (AGVs, robots) require seamless handoff
- +Ultra-low latency (<10ms) is critical for operations
- +Massive IoT deployment (>1,000 sensors) planned
- +Industry 4.0 automation is a strategic priority
Consider Alternatives When:
- !Standard office connectivity is the primary need
- !Budget constraints prevent proper deployment
- !Existing WiFi 6E meets current requirements
- !Use cases don't require low latency or mobility
- !Small indoor areas (<50,000 sq ft)
Typical Enterprise 5G ROI Metrics
Industry Example:
A large manufacturing facility deployed private 5G to enable 50 AGVs, replacing a fragmented WiFi infrastructure. Initial investment: $650K. Results: 30% productivity improvement, eliminated $180K/year in WiFi maintenance, achieved ROI in 2.8 years through automation enablement.
Managing Your Enterprise Network Costs
5G is one component of enterprise connectivity. For comprehensive cost optimization across WAN, wireless, and carrier services, consider a holistic telecom expense management approach.
Our team can help evaluate how 5G fits with your existing SD-WAN infrastructure and overall network strategy. We've helped 37 clients achieve 33% average cost reduction across their entire telecom portfolio.
Calculate Your Potential SavingsFrequently Asked Questions About Enterprise 5G Costs
Frequently Asked Questions
Need Help Evaluating Enterprise 5G?
Our telecom experts can analyze your connectivity requirements, compare 5G vs WiFi options, and build a business case for private network deployment. We provide vendor-neutral recommendations based on your specific use cases.
Related Articles
SD-WAN Cost Guide 2026: Pricing & Savings
Complete breakdown of SD-WAN costs and how 5G complements WAN strategy.
Telecom Expense Management Services
Comprehensive TEM services including 5G and wireless optimization.
FinOps for Telecom: Cost Principles
Apply FinOps principles to manage enterprise 5G and telecom costs.