Federal funding tied to open-standards wireless architecture is catalyzing a measurable retrofit wave among U.S. mid-sized manufacturers, reshaping how plants approach connectivity, operational technology (OT) integration, and workforce training. The NTIA's Public Wireless Supply Chain Innovation Fund - a ten-year, $1.5 billion competitive grant program funded through the CHIPS and Science Act of 2022 - has emerged as the primary federal vehicle driving open Radio Access Network (Open RAN) adoption in industrial settings, with its third round explicitly targeting manufacturing verticals.
Background
The Innovation Fund was authorized under the FY 2021 National Defense Authorization Act and is administered by the National Telecommunications and Information Administration (NTIA). Its core premise: the conventional wireless equipment market - composed of proprietary, closed-source hardware and software from a small group of suppliers - increases costs, suppresses competition, and creates supply chain security risks. Open RAN addresses this by enabling operators to mix and match components from multiple vendors using standardized interfaces, eliminating single-vendor lock-in.
Through its first two funding rounds, NTIA has awarded more than $550 million across 35 projects, according to agency figures. The first round funded research, development, and testing infrastructure; the second focused on commercialization of open radio units. NTIA's third Notice of Funding Opportunity (NOFO 3) makes up to $450 million available, specifically targeting software solutions that leverage Open RAN innovations to generate value for industry verticals - explicitly naming manufacturing, utilities, and mining - and to reduce the cost of multi-vendor integration through automation. The response was substantial: more than 90 applications requesting nearly $3 billion were submitted, according to NTIA.
For mid-sized manufacturers, the Citizens Broadband Radio Service (CBRS) spectrum band in the 3.5 GHz range has become the de facto on-ramp. CBRS democratizes 150 MHz of mid-band spectrum, enabling enterprises to deploy private networks without relying on mobile network operator-owned frequencies, according to industry analysts. Its three-tier spectrum sharing model offers General Authorized Access at no licensing cost, lowering the capital expenditure barrier for plants that cannot absorb the cost of exclusive licensed spectrum.
Details
The convergence of grant availability and accessible spectrum is producing concrete deployment activity. According to a recent industry study cited by NCTA, more than 2,500 private 5G networks are expected in U.S. manufacturing facilities by 2032, with CBRS at the center of that growth. Early deployments are already delivering measurable returns: one automotive manufacturer reduced unplanned downtime by 30% after deploying a CBRS-based private 5G network, addressing a challenge that costs U.S. manufacturers an estimated $50 billion annually in lost productivity. Separately, Cargill consolidated 44 Wi-Fi access points to just 5 cellular radios in a single warehouse, cutting total cost of ownership roughly in half, while BMW's Spartanburg plant deployed AI-driven video analytics over private 5G for real-time metal stud inspection on vehicle frames, according to published case data.
For open-standards ecosystems, interoperability is both the promise and the implementation challenge. NTIA NOFO 3 grant parameters require applicants to develop multi-vendor prototypes and demonstrate technical interoperability across hardware and software from different suppliers. Open and interoperable networks eliminate vendor lock-in, which increases competition in the RAN infrastructure market and can allow operators to build networks at lower prices, according to NTIA program documentation. This architecture also directly benefits mid-sized plants that rely on a diverse supplier base: network architects can select best-in-class components from distinct vendors - a critical flexibility for facilities integrating legacy OT protocols such as PROFIBUS and PROFINET alongside modern edge computing platforms.
OT training remains the most acute operational gap. Industry data underscores the scale of the workforce challenge: 73% of telecom companies report significant skills gaps in 5G technology, according to industry research, and an estimated 2.4 million 5G-skilled workers will be needed globally by 2026. On the factory floor, early private 5G deployments confirm that performance depends heavily on OT integration readiness. Analysis of initial productive deployments found that without OT alignment, even high-performing networks showed jitter or inconsistent robotic responses. The most successful deployments aligned IT, OT, automation, telecom, and safety teams from project initiation and included updated maintenance procedures and operator training for personnel working with automated guided vehicles (AGVs) and connected tools.
NTIA NOFO 3 plans to issue grants ranging from $24 million to $50 million for industry vertical solutions and from $9 million to $18 million for integration automation solutions, according to the U.S. Department of Commerce Office of Inspector General. Applicants must contribute a minimum of 30% of total project cost as non-federal cost share, creating a meaningful capital commitment from manufacturers alongside federal funding.
Outlook
NTIA has indicated it expects to make NOFO 3 awards on a rolling basis, with a fourth funding opportunity planned. The spectrum environment also remains in flux: a 2024 proposal by AT&T to relocate CBRS users from the 3.55-3.7 GHz band to the 3.1-3.3 GHz range could, if adopted, require manufacturers to replace CBRS-tuned hardware across their installed base. Industry groups, including the OnGo Alliance - which counts over 1,100 FCC-approved CBRS-capable devices on the market - have characterized the potential disruption as severe. How regulators resolve that spectrum tension will significantly influence the pace and cost of mid-sized plant modernization programs built on federally supported open-standards private 5G infrastructure.
