Why are 5G routers so Expensive?

Are they worth the cost?

More than 60 countries and counting have deployed 5G technology, and the demand for 5G networks and routers is only continuing to grow. If you’re considering purchasing a 5G cellular router and comparing prices, you may be wondering why 5G routers are so expensive.

While 5G router cost may seem expensive at the outset, the return on investment can be well worth it. A good 5G router increases network reliability and speed, which can increase productivity, improve the customer experience, and more.

5G cellular routers are necessary to fully leverage 5G networks. The price of 5G routers reflects the following factors:

Technology and materials: The cutting-edge technology, materials, and components used in 5G routers, such as the modem, are more expensive than those used in older routers. Over time, as technology become more widely used, mass production will bring costs down.

R&D Costs: Manufacturers invest significantly in research and development (R&D) to create and refine 5G-compatible devices. 

Licensing and Royalties: Implementing 5G might require manufacturers to pay licensing fees or royalties for using patented 5G technologies. These costs can add to the overall price.

Advanced features and capabilities: some 5G routers have built-in features that increase reliability of connections – including support for multiple SIM cards and dual (or more) carriers; connections to wired networks to take advantage of fiber or Starlink access; built-in failover capabilities to keep the Internet working when one connection fails; load-balancing across multiple connections to increase speeds; VPN and firewall capabilities to increase security; , and many other features.

Firmware & Software Development: 5G routers need software that can handle the technology’s unique features and requirements. Developing, optimizing, and maintaining this software can be a substantial part of the overall cost.

There’s been a lot of buzz around the rollout of 5G, but 5G really does offer significant benefits over previous generations of mobile networks. Whether or not it’s worth buying a 5G cellular router for your business or home depends on what you intend to use your network for, how many devices you need to connect, how far the signal needs to go, what networks are available in your area, and many other factors. 

5G offers significant benefits in many areas, such as:

Increased Speeds – Faster speeds are one of the most highly prized features of 5G. While download and upload speeds can vary depending on the strength of the signal, 5G can deliver an average speed of 10 Gbps – which is more than 100 times faster than 4G technology. This is huge when you’re looking for faster download and upload speeds and rely on real-time responses.

LTE vs 5G Cellular network speed comparison

Massive Network Capacity – Network capacity refers to how many devices or customers are using the same network at the same time. Too many devices on the same 4G network lead to slower data speeds, longer lag time for downloads, and network failures. 5G is designed to solve these problems, with a massive network capacity that enables many more devices to connect simultaneously and still maintain high speeds, even in densely populated areas. 

Increased Stability – With the ability to support over 500 times the connection density compared to 4G in a given area without congesting the mobile network, 5G networks are much more resilient to network congestion. For those on fiber Internet networks, 5G can serve as a solid backup to ensure business continuity during unplanned downtime. Learn more (link to new fiber backup page)

Decreased Latency – Network latency refers to the time taken for devices to communicate with each other. On average, 4G provides over 20 milliseconds of lag, while 5G has less than 5 milliseconds. This low latency enables more responsive devices, which ideal for everyone from surgeons collaborating with colleagues outside the operating room, to gamers working together to rack up points, to everyone else requiring instant, seamless connections. 

Increased Flexibility – The 5G network has the ability to scale from high-frequency mmWaves to provide much faster transmission bandwidth and lower latency than 4G, to a sub-6GHz frequency range for increased reliability and capacity transmission range at a remarkable increase in performance compared to 4G.

Backward Compatibility – Many 5G routers are designed to be backward compatible, meaning they can connect to 4G networks when a 5G signal is unavailable.

Future-focused – With faster download/upload speeds, real-time responses, and enhanced connectivity, 5G gives businesses and consumers the ability to experience the new, innovative technologies. 

Read more about 5G vs 4G here

Peplink B One 5G Cellular Router

Bottom line, yes, 5G routers can be pricy. Features, advanced technology, new materials … all of these factors can contribute to higher prices. But the good news is you can still get a quality 5G cellular router at an affordable price. If you’re looking for faster download and upload speeds, real-time responses, extended coverage, and general connection stability at an affordable price, Peplink offers a wide range of options. Our 5G routers can help you reap the full benefits of 5G today—and tomorrow.

See Peplink’s 5G routers and compare prices

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See Peplink’s Best Guide to 5G Routers