So 5G is not needed for that purpose at all.
The sub-GHz 802.11 seems to be uniquely american thing. And maybe just pushing anything over RF is somewhat uniquely Czech thing (caused by the fact, that Czech spectrum allocation has somewhat unique additional 10GHz ISM band), but in Prague there is an giant nest of smallish microwave antennas on every tenth street light pole (the extreme is probably Malostranske namesti, where there is 10GHz link between two traffic signals that spans about 70m).
Also, while its true one could just wire up all of these fixed devices, these wiring costs would massively drive up the cost of implementation. Trenching city streets to lay new cables costs a lot of money, just ask Google.
A cell tower has more than a single channel and a city with a thousand traffic lights is going to have many cells, so using existing cellular generations is not going to run into problems with collisions from 1000 traffic signals trying to send data at once.
My point is that a city with a thousand traffic lights will be covered by hundreds if not thousands of cells, so the issue of traffic lights competing for bandwidth for a single source is non existent.
And this problem doesn't change for 2G, 3G, 4G, or even 5G. Perhaps 5G can scale better but if you had a single 5G tower covering an entire city, it too would run out of capacity.
Or, you know, it's not like traffic signals move around on their own, so they could just be hardwired.