Building the Business Case for a 5G Edge Router (TCO vs. ROI)

So, you've seen the "sticker shock": a 5g edge router can cost significantly more than its 4G LTE counterpart. This guide is for building the business case for 5g that proves why it's a critical investment, not an expense. We'll show that while the CapEx for a 5G edge router is higher, the ROI from new capabilities (URLLC, eMBB) and the OpEx savings from preventing downtime can deliver a TCO that makes the 4G edge router the "more expensive" choice in the long run.

It's a conversation happening in budget meetings everywhere. The engineering team presents a proposal for a new 5g edge router (like the Robustel R5020 Lite) for a factory, vehicle fleet, or branch office. The CFO looks at the quote and says, "This 5g edge router is three times the price of the 4G LTE edge router we bought last year. Why would we pay this?"

If your answer is "because it's faster," you've already lost the argument.

A 5g edge router is not just a "faster" 4G edge router. It's a completely different class of device that enables completely new business outcomes. You don't justify it by comparing its price to an older, less capable edge router. You justify it by calculating the massive ROI it unlocks or the catastrophic TCO it prevents.

Let's be honest. The upfront cost (CapEx) for a 5g edge router is higher. The 5G modem, the RF front-end, and the advanced antenna systems are more complex and expensive. If your only application is, for example, a simple 4G failover for a small office that's used once a year, a 4G industrial edge router is still the TCO king.

But for any new or advanced application, the TCO of not having 5G is the real, hidden cost. The true 5g edge router tco analysis isn't about the hardware price; it's about the cost of failure and the value of new opportunity.

The 5g edge router roi is not found in saving a few dollars on the device. The ROI is found in solving multi-million dollar business problems.

This is the most powerful argument for an industrial edge router using 5G.

• The Problem: Your factory AGVs run on Wi-Fi. They "roam" between access points, the handoff fails, and the robot freezes, stopping the production line. Your cost of downtime is $20,000 per hour.
• The 4G Limit: A 4G edge router is better, but its 40ms+ latency is too high for the real-time collision avoidance and fleet management commands.
• The 5G Solution: You deploy a private 5g network with a 5g edge router (like the R5020 Lite ) on each AGV. The network delivers <10ms latency (URLLC). The roaming failures disappear. The fleet runs 20% faster.
• The ROI: You prevent just one 3-hour downtime event. You just saved $60,000. Your entire 5g edge router fleet is paid for. This isn't a "cost"; it's an insurance policy.

This is the bandwidth argument.

• The Problem: Your expert engineer has to fly to a remote site to fix a machine, wasting 3 days and $5,000.
• The 4G Limit: You try a remote video call over a 4G edge router, but the connection is laggy, the video is pixelated, and the engineer can't see the detail. The truck roll happens anyway.
• The 5G Solution: A 5g edge router provides a crystal-clear, 4K video stream with low latency. Your expert can use AR goggles to circle components in the local tech's field of vision.
• The ROI: The 5g edge router saves the $5,000 truck roll. It also allows your one expert to fix 5 sites in one day instead of one site in 3 days. Your expert's productivity just 5x'd.

This is the "blue sky" justification. A 4G edge router lets you monitor your machines. A 5g edge router lets you control them in real-time.

• The Opportunity: You're a machine builder. You can now sell a new "Remote Operation" subscription service.
• The 4G Limit: You can't. The latency is too high to safely operate a remote crane or excavator.
• The 5G Solution: A 5g edge router with URLLC makes this possible.
• The ROI: This edge router isn't a cost center; it's a new, high-margin revenue stream. The 5g edge router roi is infinite because the service couldn't exist without it.

Here's the counter-intuitive part: sometimes a 5g edge router is just plain cheaper.

• Scenario: New Site Deployment. You're opening a new branch office or construction site.
• The "Wired" TCO: Wait 6-8 weeks for the ISP. Pay $10,000 - $50,000 for them to trench fiber to your site.
• The 5G Edge Router TCO: Buy a 5g edge router for $1,000. Plug it in. You have 500 Mbps internet today.
• The Result: The 5g edge router TCO isn't just lower; it's a fraction of the cost of a wired build-out, and you're operational a month sooner. This is the power of Fixed Wireless Access (FWA) enabled by a cellular edge router.

The TCO of any edge router (4G or 5G) is dominated by management. The 5g edge router tco is no exception. A powerful edge router that is difficult to manage is a failed investment.

This is why a platform like Add One Product: RCMS is critical to the business case. RCMS slashes your TCO by:

• Automating Deployment (ZTP): It radically reduces the high labor cost of rolling out your new 5g edge router fleet.
• Eliminating Truck Rolls: It provides secure remote access (RobustVPN) for troubleshooting the edge router and the devices behind it.

When you buy a Robustel 5g edge router, you're buying into an ecosystem designed to lower your total cost, not just your hardware cost.

Stop comparing the price of a 4G edge router to a 5g edge router. It's the wrong math.

Start calculating the cost of your problem.

• What is the cost of one hour of downtime?
• What is the cost of one "truck roll"?
• What is the opportunity cost of not being able to offer a new, real-time service?

When you do that math, the business case becomes clear. The 5g edge router isn't an "expensive" edge router. It's the only edge router with an ROI high enough to solve your most expensive problems.