The German Chemical Industry Association (VCI), the German Association of the Automotive Industry (VDA), the German Engineering Federation (VDMA) and the German Electrical and Electronic Manufacturers ' Association (ZVEI) are in favor of the local allocation of 5G radio frequencies in the 3,700 - 3,800 MHz range to manufacturing companies. They therefore welcome the Federal Network Agency's decision to auction off local and regional frequencies upon application. Prices are not yet known. This award procedure will enable companies to operate locally limited 5G industrial networks for communication between machines, systems and plants at their own production sites and thus also determine the timing of the expansion as well as the quality and availability of the 5G network and the confidentiality and integrity of their data.

5G technology enables broadband data transmission for industrial applications for the first time, as it meets the requirements for reliability and real-time capability (latency).

Here is the wording of the position paper:

Joint position of the VCI, VDA, VDMA and ZVEI on the local and regional allocation of radio frequencies for 5G in the 3.6 GHz band (July 2018)
Due to digitalization, industrial production is changing from static and sequential to temporally and spatially flexible, modular production systems. These depend on a reliable and powerful digital infrastructure. The new 5G generation of mobile communications will play a decisive role as a communication standard for Industry 4.0 applications and processes in production and manufacturing.

However, this will only be possible if the networks fully meet the requirements of industry (availability, data security, operational security, guaranteed quality of service, etc.) and are also expanded across the board, especially where they are needed by companies in production.

For the manufacturing industry, it is of central importance that companies are given the opportunity to operate flexible, locally limited "own" 5G networks for communication between machines, systems and plants at production sites that are tailored to individual requirements independently of third parties. This is the only way to ensure that industrial operators can decide on the time of expansion and quality of the 5G network and maintain the availability, confidentiality and integrity of their data.

The use of 5G in digitalized, industrial production will be a mandatory requirement for Germany as a leading Industry 4.0 market and for German companies as leading providers of Industry 4.0 applications. The VCI, VDA, VDMA and ZVEI therefore expressly support the Federal Network Agency's decision on May 14, 2018 to auction the 3,400-3,700 MHz frequency band nationwide and to allocate the 3,700-3,800 MHz range at local and regional level upon application.