Private 5G can connect robots, cameras, sensors, vehicles, and workers across one industrial site. However, radios represent only one part of your final investment.
Facility size, coverage requirements, connected devices, applications, and support arrangements affect every supplier quote.
Canadian businesses must also secure a suitable spectrum route before operating licensed equipment. A clear cost breakdown helps your team compare proposals without purchasing capacity your site cannot use.
Start With the Canadian Spectrum Route
The cost of private 5G includes spectrum access, though licensing can represent a smaller budget item. Innovation, Science and Economic Development Canada offers Non-Competitive Local Licensing for businesses needing spectrum within a defined area. Licence areas can cover locations such as factories, farms, campuses, or communities.
Companies may also seek subordinated access from a Canadian mobile spectrum holder. This arrangement requires an agreement with the primary licensee and approval from ISED.
Canada’s 3900–3980 MHz band provides 80 MHz through eight separate 10 MHz blocks. The standard spectrum limit is 20 MHz within one geographic area. Eligible factories, warehouses, mines, and certain other industrial users may request up to 80 MHz when they meet ISED’s conditions.
For the 2026–2027 fiscal year, ISED uses these annual rates for NCL licences below 10 GHz. A minimum annual fee of CAD 50.14 applies when the formula produces a lower amount.
| Location type | 2026–2027 rate per MHz per km² | Formula result for 20 MHz across 1 km² | Estimated annual fee |
| Metropolitan or urban | CAD 1.88 | CAD 37.60 | CAD 50.14 minimum |
| Rural | CAD 0.47 | CAD 9.40 | CAD 50.14 minimum |
| Remote | CAD 0.01 | CAD 0.20 | CAD 50.14 minimum |
These examples assume one licence covering one square kilometre. Your fee will change with bandwidth, licence area, and future annual adjustments.
Understand the Main Project Costs
Your radios and central network platform form only one budget category. Industrial deployments may also require fibre, switches, edge servers, antennas, mounts, electrical work, and protected cabinets.
A professional radio survey should happen before equipment gets ordered. Engineers need to study signal behaviour around machinery, concrete walls, metal shelving, and outdoor structures. Early planning can prevent expensive radio relocation after installation.
Your project budget should cover these major areas:
- Radio surveys and detailed network design
- Radios, antennas, and central network software
- Fibre connections and network switches
- Electrical circuits and backup power
- Edge servers and protected equipment cabinets
- Device modems, gateways, and SIM cards
- Cybersecurity and identity management
- Production system integration and testing
- Building permits and safety reviews
- Staff training and vendor support
Connected devices can increase spending faster than expected. Existing tablets or scanners may lack compatible cellular hardware. Robots and cameras might need modems, gateways, SIMs, or separate software licences.
Count every device before requesting a final proposal. Also record its location, bandwidth needs, and mobility requirements.
Build an Illustrative Pilot Budget
Private 5G cost for industrial use should begin with one measurable problem. A warehouse might test vehicle tracking across one loading zone. A factory could connect inspection cameras along one production line.
Consider an illustrative CAD 250,000 pilot for initial planning. This example does not represent a supplier quotation or a standard Canadian market price.
| Project area | Estimated cost | Share of total budget |
| Network equipment and platform licences | CAD 125,000 | 50% |
| Installation and site preparation | CAD 50,000 | 20% |
| Compatible devices and required gateways | CAD 25,000 | 10% |
| Security and operational system integration | CAD 25,000 | 10% |
| Testing, training, and project contingency | CAD 25,000 | 10% |
| Total estimated pilot budget | CAD 250,000 | 100% |
This budget assumes one limited industrial area with existing fibre and available electrical capacity. It also assumes a controlled device count and no major construction work.
Your proposal may rise significantly when the project includes:
- Underground or outdoor coverage
- Several buildings or production areas
- New fibre routes or electrical circuits
- Redundant network equipment
- High-resolution video applications
- Large fleets of connected vehicles
- Extensive software integration
- Work completed outside production hours
Underground mines, ports, and large outdoor yards need different radio designs. Protected power systems can also increase installation costs.
Include Operating Costs From Day One
Annual spending may include platform subscriptions, vendor support, monitoring, software updates, security reviews, and replacement equipment. Your internal team also needs time for SIM management and device onboarding.
One supplied industry estimate places annual operating expenses around 15% to 20% of initial capital spending. Treat this range as a planning scenario rather than a fixed Canadian benchmark.
For a CAD 250,000 pilot, the range would produce this example:
| Operating cost scenario | Illustrative annual amount |
| 15% of initial capital spending | CAD 37,500 |
| 20% of initial capital spending | CAD 50,000 |
Your actual amount will depend on internal staffing and vendor support. Cloud-based network platforms may reduce server purchases but introduce recurring subscription fees.
Ask each supplier for a complete five-year cost table. Separate every one-time purchase from recurring yearly charges. Request prices for added radios, devices, licences, storage, and support hours.
Canadian proposals may exclude taxes, freight, training, or foreign exchange changes. Ask suppliers to list every pricing assumption before your team compares bids.
Match Spending With Business Value
Do not approve a network before measuring the operational problem. Record your current downtime, labour hours, defect rate, or production losses. Then connect each network feature with one measurable result.
Automated vehicle routing may reduce loading-bay delays. Wireless cameras may shorten inspections across difficult production areas. Connected sensors may help teams identify equipment problems earlier.
Your pilot should track those results before wider deployment. Buying network coverage first and searching for applications later can waste capital.
Start with one expensive problem and measure the current baseline. Run the pilot under normal operating conditions. Expand only after the results support further investment.
Final Thoughts
Canadian spectrum fees can be modest beside equipment and integration spending. Your highest costs will depend on coverage, connected devices, site preparation, and ongoing support.
Request several proposals using the same coverage map and device list. Ask every supplier to follow the same five-year cost format. Comparable proposals will help your team choose a practical network without unnecessary capacity.
