Press Releases

Auction of 5G licenses must benefit the entire industry

Frankfurt/Berlin, 31 August 2018

Joint press information from VCI, VDA, VDMA and ZVEI

The industry associations VCI, VDA, VDMA and ZVEI comment on the plans of the Federal Network Agency for auctioning spectrum for the new 5G mobile telecommunications network.

The industry needs a digital infrastructure that is internationally competitive. This is essential for Industry 4.0, networking factories and innovative applications, such as connected and automated driving, to be successful, and to secure growth, jobs and prosperity in Germany and Europe. In addition, it will improve road safety and help road traffic to flow more smoothly. For this to come about, large companies – and small and medium-sized enterprises in particular – require a modern 5G telecommunications network that must be established quickly.

The Federal Network Agency’s decision to make local bandwidth available for communication within factories has already put some important prerequisites in place.

Another key aspect is the coverage obligations. The Federal Network Agency’s proposal of basing the coverage obligations solely on households, railway lines, freeways and federal roads does not go far enough. Small and medium-sized industrial companies, traffic routes and agriculture, which in some cases are well away from major urban centers, must be part of the digital future. We are therefore calling for expansion to encompass industrial locations, transport routes and agriculture – including small and medium-sized firms.

The decisive factors affecting innovation and cost-efficient service provision will be the competition for new ideas, new offers and keen pricing – especially on the telecommunications market. An obligation on service providers will be necessary to stimulate more competition in 5G.

At present there is an opportunity to prepare for the future. In 2025 the usage rights for spectrum in the 800 megahertz range will expire. Then at the latest, it will be time for total mobile coverage with 5G. The Federal Network Agency has to take this into consideration now during the auctions of 5G licenses and other licenses.

Germany’s largest industry associations making this joint appeal represent the interests of over three million industrial jobs. We are therefore calling for policy-makers to align their decision concerning the 5G auction with the interests of the wider industry.

Press contacts:

Verband der Chemischen Industrie (VCI, German chemical industry association)

Press contact: Manfred Ritz, tel.: +49 69 2556-1550, e-mail: ritz@vci.de

German Association of the Automotive Industry (VDA)

Press contact: Eckehart Rotter, tel.: +49 30 897842-120, e-mail: rotter@vda.de

Mechanical Engineering Industry Association (VDMA)

Press contact: Holger Paul, tel.: +49 69 6603-1922, e-mail: holger.paul@vdma.org

ZVEI – German Electrical and Electronic Manufacturers’ Association

Press contact: Nina Klimpel Maciel, tel.: +49 69 6302-403, e-mail: klimpel-maciel@zvei.org

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