Private 5G Network Cost — Technical Reference

Private 5G Network Cost: A Realistic Breakdown for Canadian Industrial Operators

Private 5G pricing is opaque. Vendors rarely publish list prices, and "contact us for a quote" is the standard answer. This page provides a frank breakdown of the real cost components — spectrum, RAN hardware, core software, devices, site preparation, and ongoing OpEx — with realistic ranges based on site type and scale. Numbers are in Canadian dollars unless noted.

Why cost ranges vary so widely

A private 5G deployment for a 10,000 sq ft manufacturing floor costs fundamentally different amounts than one covering a 50 km² open-pit mine. The cost drivers — number of radio units, spectrum licensing, outdoor vs indoor propagation, backhaul, and integration complexity — vary by orders of magnitude across site types. Treat the ranges below as planning benchmarks, not quotes.


Total Cost Summary by Site Type

High-level cost ranges before the component breakdown. These reflect full deployment costs including hardware, software, site work, devices, and first-year support.

Small Site

$80K – $350K
+ $2K – $8K/month
Campus, warehouse, small manufacturing floor, enterprise office. 5–15 indoor radio units. <50,000 sq ft.

Medium Industrial Site

$350K – $2M
+ $8K – $25K/month
Port terminal, manufacturing complex, utility substation cluster, transit yard. 15–60 radio units. Multi-building or outdoor.

Large / Remote Site

$2M – $15M+
+ $25K – $80K/month
Open-pit mine, large port, utility transmission territory, rail corridor, offshore platform. 60+ radio units. Multi-km² coverage.
OpEx vs CapEx decision

Several vendors (Celona, Nokia, Ericsson) offer private 5G as a managed service or NaaS (Network as a Service) model — monthly subscription covering hardware, software, and support. This converts CapEx to OpEx and shifts maintenance responsibility to the vendor. Typical NaaS pricing: $3,000–$20,000/month for a mid-size deployment. Useful for organizations with capital constraints or limited internal RF expertise.


CapEx Component Breakdown

A private 5G deployment has five primary capital cost components. The weight of each varies significantly by site type — spectrum cost dominates for wide-area deployments; RAN hardware dominates for large indoor deployments.

1. Spectrum Licensing

$0 – $500,000+ depending on approach

Spectrum is the most complex cost variable in a Canadian private 5G deployment. Unlike the United States, which has the CBRS (Citizens Broadband Radio Service) framework enabling enterprises to access 3.5GHz spectrum for private networks without carrier involvement, Canada does not have an equivalent framework as of 2026.

The 3500 MHz band — the global primary band for private 5G — was auctioned by ISED in 2021. The major Canadian carriers (Rogers, Bell, Telus) acquired the majority of licenses. Enterprise access to this spectrum for private 5G requires one of:

  • Carrier partnership / spectrum lease: Negotiate spectrum access from a carrier for a specific geographic area. Cost varies widely — expect $5,000–$50,000/year for a defined site, higher for large footprints. Carrier cooperation is not guaranteed.
  • ISED local licensing: ISED has issued local spectrum licenses to enterprises in some situations, particularly in remote areas, for industrial sites where carriers have not deployed. Regulatory fees are relatively low ($1,000–$15,000/year); the challenge is demonstrating non-interference with licensed holders.
  • Unlicensed / shared bands: Some private 5G deployments use CBRS-equivalent or other shared bands. Coverage and interference management are constraints. Not suitable for URLLC-critical deployments.
  • Purchased spectrum: In exceptional cases, enterprises acquire spectrum through secondary market transactions. Cost is site and band-specific; expect $200,000–$2M+ for meaningful licensed spectrum rights in populated areas.
Spectrum strategy in Canada

For remote industrial sites (mines, utility infrastructure in rural areas, remote ports), local ISED licensing is often achievable. For urban and suburban sites, a carrier partnership is typically required. ISED's ongoing spectrum policy work is expected to introduce more enterprise-friendly access mechanisms — monitoring the Radiocommunication Act consultation process is advisable for organizations planning multi-year private wireless deployments.

2. Radio Access Network (RAN) Hardware

$50,000 – $5,000,000+ depending on site coverage

RAN hardware — the gNBs (5G base stations), antennas, mounting hardware, and associated cables — is typically the largest single CapEx component for most private 5G deployments.

  • Indoor small cells / enterprise pRUs: $5,000–$20,000 per unit (Celona, Nokia, Ericsson). A 50,000 sq ft warehouse typically requires 8–15 units; a multi-floor office building may need 20–40.
  • Outdoor macro gNBs: $30,000–$120,000 per unit (excluding installation and civil works). A large mine or port may require 20–80+ outdoor units depending on coverage area and terrain.
  • Outdoor small cells: $8,000–$30,000 per unit. Used for mid-range outdoor coverage where full macro gNBs are oversized or cost-prohibitive.
  • Distributed Antenna System (DAS) + 5G interface: For multi-floor buildings or tunnels, DAS can distribute 5G signal through a passive antenna network. DAS infrastructure adds $15,000–$80,000+ per floor or zone depending on scale.
  • Antennas: $500–$10,000+ per antenna. Directional antennas for point-to-point links; omni or sector antennas for area coverage. Massive MIMO arrays (64T64R) are $8,000–$30,000 per unit but provide significant capacity gains.
  • Fronthaul / midhaul cabling: $5–$40 per metre for fibre, plus labour. A large site may require several kilometres of cabling runs.
  • PoE switches and power infrastructure: $5,000–$80,000 depending on scale. Outdoor deployments in remote areas may require generator backup, battery systems, and solar — significantly higher cost.

3. 5G Core Network (5GC)

$20,000 – $300,000+ (software + hardware)

The 5G core processes all control plane signalling and user plane data routing. For private deployments, the core runs on-premises (edge compute server) or as a cloud-hosted service.

  • Software license / subscription (on-prem): $20,000–$150,000/year depending on vendor and deployment scale. Enterprise-focused vendors (Celona, Athonet) have significantly lower price points than carrier-grade vendors (Ericsson, Nokia).
  • On-premises server hardware: $15,000–$60,000 for COTS (Commercial Off-The-Shelf) server hardware suitable for running a containerized 5GC. Dell PowerEdge, HPE ProLiant, and Cisco UCS are common platforms.
  • Cloud-hosted 5GC (NaaS model): $500–$5,000/month eliminates on-premises server cost but introduces WAN dependency for control plane functions. Not suitable for sites with unreliable backhaul.
  • Edge compute for MEC (Multi-Access Edge Computing): $10,000–$50,000 for on-site GPU/CPU server capable of running AI inference workloads at the edge.
Open-source core options

Open-source 5GC implementations exist — Magma (Meta), Open5GS, free5GC — and can significantly reduce software licensing cost. However, they require significant internal RF/core engineering expertise to deploy and maintain, and typically lack enterprise support contracts. Suitable for organizations with in-house telecoms engineering capability; not recommended as a primary approach for industrial operators without a dedicated wireless team.

4. SIM / eSIM Cards and Device Connectivity

$5 – $25 per device (SIM); $50 – $3,000 per connected device

Every device connecting to the private 5G network requires a SIM (physical) or eSIM (software-provisioned) configured for the private network's PLMN (Public Land Mobile Network) identity. SIM management is an ongoing operational task — provisioning, deprovisioning, and profile management.

  • Physical SIM cards: $5–$25 per card (volume pricing available). Enterprise SIM management platforms add $1–$5/device/month.
  • Industrial 5G routers (vehicle/fixed): $500–$4,000 per unit (Cradlepoint R1900, Sierra Wireless RV55 5G, Peplink MAX BR2 Pro). Each router connects one vehicle or fixed installation to the 5G network; downstream devices connect via Ethernet or WiFi.
  • 5G modules for embedded integration: $50–$500 per module. For integrating 5G connectivity directly into industrial equipment, PLCs, or OEM devices.
  • 5G industrial smartphones / handsets: $400–$2,000 per device for ruggedized options.

5. Site Preparation and Civil Works

$10,000 – $2,000,000+ (highly site-specific)

Site preparation costs are the most variable and most frequently underestimated component in a private 5G deployment. Every site is different — a new construction deployment can plan conduit and mounting from the start; a retrofit into an operating mine or port involves working around production schedules, hazardous zones, and existing infrastructure.

  • Cable installation (indoor): $15–$80/metre for Cat6A or fibre, including labour, conduit, and penetrations. A 100,000 sq ft facility with 20 radio units may require 3–5 km of cable runs.
  • Tower / mast structures (outdoor): $15,000–$150,000 per structure depending on height, foundation requirements, and environment (standard vs corrosive/explosive-rated).
  • Power supply (remote sites): For remote sites without grid power at radio unit locations, solar + battery or generator systems cost $10,000–$80,000 per site point.
  • Hazardous location equipment: ATEX/IECEx-rated equipment for explosive atmospheres (mining, petrochemical) carries a 2–5x price premium over standard equipment. Not optional where required by safety regulations.
  • RF survey and network planning: $8,000–$50,000 depending on site complexity. A proper site walk, RF measurement campaign, and propagation modelling is essential for an accurate deployment design — skipping this step typically results in coverage gaps or over-engineering the solution.
  • Integration with existing systems (OT/SCADA): $20,000–$200,000+ depending on the complexity of the existing OT environment and the integration depth required.

Ongoing Operational Costs (OpEx)

Private 5G has meaningful ongoing costs beyond the initial CapEx. These are frequently underestimated in initial business cases.

OpEx Component Typical Range Notes
Spectrum licensing fees $1,000–$50,000/year ISED annual fees for local licensing; carrier spectrum lease fees if applicable
Hardware maintenance and support 10–15% of CapEx annually Vendor support contracts for RAN and core hardware. Critical for SLA-backed uptime.
Core software subscription $2,000–$15,000/month Annual subscription for 5GC software licenses, updates, and vendor support
SIM management platform $1–$5/device/month Enterprise SIM lifecycle management; scales with device count
Backhaul connectivity $500–$10,000/month Fibre or microwave backhaul from site to internet / enterprise WAN. Remote sites may require satellite backhaul ($2,000–$15,000/month).
Managed service fee (if applicable) $5,000–$30,000/month If using a third-party to operate and monitor the network. Includes NOC, patching, incident response.
Internal RF/network staff $90,000–$180,000/year (one FTE) If managing in-house. Many organizations manage private 5G with existing network operations staff after initial training.
Power consumption (RAN) $200–$2,000/month Each indoor small cell consumes 20–60W; outdoor macro gNBs 100–500W. Scales with radio unit count.

Vendor Landscape and Price Positioning

Private 5G vendors span from carrier-grade (Ericsson, Nokia) to enterprise-focused (Celona, Athonet) to open-source-based approaches. Price and operational complexity differ substantially.

Celona

US-based, purpose-built for enterprise and industrial private 5G. Cloud-managed, CBRS-focused (US) with expanding international coverage. Most accessible price point for mid-market deployments. Full-stack (RAN + core + orchestration).

Price tier: $$ — Most accessible for SME/mid-market

Nokia (Digital Automation Cloud)

End-to-end private wireless platform targeting industrial and enterprise. Broader frequency band support than Celona, including sub-1GHz for large outdoor sites. Strong in mining, utilities, and ports globally.

Price tier: $$$ — Mid-market to enterprise

Ericsson (Private 5G)

Carrier-grade private 5G with full 3GPP feature compliance. Strongest URLLC and network slicing implementation. Typically deployed at larger industrial scale — mining, ports, manufacturing at significant volume.

Price tier: $$$$ — Enterprise and carrier-scale

Athonet

Software-core-focused vendor (now part of HPE). Runs on COTS hardware; can integrate with multiple RAN vendors. Flexible architecture for organizations that want to separate RAN and core procurement.

Price tier: $$$ — Enterprise, flexible architecture

Samsung Networks

Competitive pricing, strong 5G NR radio hardware. Growing private 5G enterprise focus. Solid option for manufacturing environments; expanding industrial site deployments globally.

Price tier: $$ – $$$ — Competitive mid-market

Baicells

Lower-cost RAN hardware, CBRS-focused. Strong in US market; some presence in Canada. Best for cost-sensitive deployments where carrier-grade feature completeness is less critical. Good for initial deployments with intent to upgrade.

Price tier: $ – $$ — Cost-focused

Vendor-agnostic vs single-vendor approaches

Single-vendor deployments (same vendor for RAN and core) simplify integration, support, and troubleshooting — one throat to choke. Multi-vendor deployments (e.g., Baicells RAN + Athonet/HPE core) can reduce hardware cost but require more integration expertise and can complicate support when issues span the RAN-core interface.

For industrial operators without a dedicated wireless engineering team, single-vendor is generally the lower-risk approach. For organizations with RF engineering capability or a systems integrator managing the deployment, disaggregated vendor selection provides more flexibility and competitive pricing.


Cost Drivers That Move the Number

Understanding what pushes cost up — and what doesn't — is more useful than a number without context.

FactorImpact on CostWhy
Remote or harsh environment+50–200%Ruggedized hardware, hazardous location certification, power infrastructure, logistics to remote sites
Outdoor vs indoor coverage+100–300%Outdoor macro gNBs cost 3–10x indoor small cells; civil works for towers and cabling are significant
Licensed spectrum requirement+$0–$500K+Spectrum licensing approach (free local license vs carrier partnership vs purchased) varies enormously
URLLC requirements+20–40%Requires Standalone 5G, denser cell planning for handoff reliability, more rigorous core configuration
OT/SCADA integration+$20K–$200KProtocol translation, security architecture, testing with operational systems — complex and time-consuming
Multi-site deployment−20–40% per site (at scale)Core infrastructure, engineering, and management costs amortize across sites; hardware volume pricing applies
Greenfield vs retrofitGreenfield typically 30–50% lower civil costPlanned conduit, power, and mounting avoids retrofit disruption and change orders
Network redundancy requirements+30–60%Redundant core, backup power, dual-path backhaul — required for mission-critical operations

The ROI question: what does the network need to justify its cost?

A private 5G deployment for a mining operation has a fundamentally different ROI equation than one for a mid-size manufacturer. In mining, a single tele-operated haul truck removes a human from a dangerous environment and eliminates the cost of that operator's underground logistics, safety monitoring, and potential incident liability. At $500K–$2M/year in saved costs per tele-operated truck, the ROI calculation for the network is straightforward.

For smaller deployments, the ROI is typically framed around: reduced downtime from better connectivity (predictive maintenance), reduced site visits (remote monitoring), improved throughput (automation), and safety incident reduction (RTLS and geofencing). Quantifying these against the network cost is the essential step before approving a CapEx request.

A site assessment produces a deployment design with a realistic cost estimate — and the use case analysis that goes with it provides the inputs for a defensible business case.


Get a Site-Specific Cost Estimate

The ranges above are planning benchmarks. A site assessment produces a realistic cost model based on your actual coverage area, use cases, and existing infrastructure.

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