Gaps in the supply of fast internet are still holding back many companies in Germany when it comes to digitalization. The situation regarding broadband expansion has improved, the German Electrical and Electronic Manufacturers ' Association (ZVEI ) stated on Monday based on a survey of the industry. However, the situation is "still far from satisfactory".

While around a quarter of those surveyed in 2016 still saw the lack of broadband expansion as a cause of sluggish digitalization, the figure is now twelve percent. "Conversely, this means that more than one in ten companies do not have the basis to implement digital business models," concludes the association. This mainly affects small and medium-sized companies, which are often located in rural areas. 139 companies were surveyed, which, according to the ZVEI, account for a third of the industry's annual turnover.

The ZVEI called on the new German government to more actively promote technological innovations, artificial intelligence (AI) and data-driven business models. "AI-based solutions and algorithms have long been part of our everyday lives. Now more than ever, we need to take advantage of their opportunities and not freeze in the face of potential risks. To this end, regulatory and bureaucratic hurdles must finally be removed," warned ZVEI President Gunther Kegel.

For more than a third of electrical companies, a lack of legal certainty is a major obstacle to digitalization. "The new German government must find a pragmatic way of using personal data in a legally secure manner within the framework of the GDPR - for example through clearly defined anonymization procedures," demanded the ZVEI.

The European Union's General Data Protection Regulation (GDPR) regulates the processing of personal data by private companies and public bodies. It is intended to ensure that personal data is protected within the European Union, while at the same time guaranteeing the free movement of data within the European Single Market.