5th generation mobile networks, abbreviated 5G, are the proposed next telecommunications standards. 5G research and development also aims at improved support of machine to machine communication, also known as the Internet of Things, at millimeter waves. The move to these extremely high frequency bands, as well as the new requirements to the 5G network parameters, need new approach for the future technical systems solutions. One of those is the use of microwave coherent transponding system. Spatial Correlation Processing – Random Phase Spread Coding is a new technology in the field of microwave beam forming antenna theory, developed by the author one decade before. Its application in millimeter wave coherent transponding systems is proposed in this report. The system advantages are considered in details too.