5G technology significantly increases internet speed and connection quality. This new generation of network technologies not only provides faster internet but also lays the groundwork for industrial automation, smart cities, autonomous vehicles, and many other innovative applications. However, for this revolutionary technology to reach its full potential, it is contingent on technical and political issues like spectrum management.

Spectrum can be defined as radio frequencies and can be thought of as a highway where data transmission occurs. 5G not only expands this highway but also adds more lanes to increase data carrying capacity. Local spectrum, on the other hand, allows for the creation of special lanes in certain areas of this wide highway. This particularly enables the provision of customized services for a specific geographic area or institution, forming the backbone of Industry 4.0.

In factories, thanks to the use of local spectrum for 5G, production lines can be monitored instantly and automated. In Germany, specific spectrum bands have been allocated for industrial areas. This allows robots and machines to communicate with very low latency, making production processes more efficient and faster. Here, “licensed” local spectrums are preferred for such private networks because they offer a safer and more performant connection.

How spectrum will be used locally depends on each country’s policies. In regions like the European Union, harmonization of spectrum use, that is, the effort towards standardization, is an important issue because services and devices need to be compatible across cross-border networks. However, each country might have its own regulations and spectrum allocation policies. For instance, in Germany, through the 5G spectrum auction held in 2019, spectrum in the 2 GHz and 3.6 GHz bands was distributed, generating 6.5 billion Euros from licenses awarded to Deutsche Telekom, Vodafone, Telefonica, and 1&1 Drillisch. Post-auction, these operators were required to provide 5G coverage especially in rural areas and major transportation routes, with compliance being monitored. These licenses are national coverage licenses.

For industrial applications, bands like 3.7-3.8 GHz are allocated through local licensing. This is seen as both an important and necessary step for automating production processes under Industry 4.0. Additionally, companies are encouraged to build their own private 5G networks for better security and performance. Techniques like Dynamic Spectrum Sharing (DSS) are also implemented for more efficient spectrum use. The Federal Network Agency of Germany (Bundesnetzagentur), tasked with ensuring the efficient and fair use of spectrum, determines the licensing fees and distribution conditions for local spectrum use.

Since spectrum is a limited resource, how and by whom it should be used is a significant discussion topic. Governments need to take measures for efficient use and sharing of spectrum. Especially in unlicensed spectrum, there’s a higher likelihood of security breaches and privacy violations, which can pose serious challenges for critical infrastructure or systems handling sensitive data. Licensing and establishing local spectrum infrastructure can be costly, potentially posing a barrier for small and medium-sized businesses. The role of local spectrum within 5G technology offers new opportunities while also presenting technical, economic, and political challenges. Overcoming these challenges is crucial to unleashing the full potential of 5G and not missing out on the Industry 4.0 revolution.