Relevant policies and competition pattern of China’s optical fiber and cable industry, existing technologies gradually mature


1. Related policies for the optical fiber and cable industry

An optical fiber cable is a communication cable consisting of two or more glass or plastic optical fiber cores, which are located in a protective coating and covered by a plastic PVC outer sleeve. The signal transmission along the internal optical fiber generally uses infrared rays. Optical fiber communication is one of the important ways of modern information transmission. It has the advantages of large capacity, long relay distance, good confidentiality, immunity to electromagnetic interference and saving copper.

2. Analysis of the development status of China’s optical fiber and cable industry

In 2018, China’s optical fiber deployment reached 284 million kilometers. Although China’s regional deployment decreased by 1%, the deployment of optical fiber broadband users in other regions increased by 10% year-on-year.

In terms of output, since 2011, the overall output of optical fiber and cable has shown an increasing trend. From 2011 to 2016, the output of China’s optical fiber and cable industry rose from 138 million core kilometers to 329 million core kilometers, with an average annual growth rate of 16.7%. In 2017 and 2018, there was a decrease compared to the previous year. In 2018, it was 317 million core kilometers, a decrease of 7% compared to the same period last year. As of the first half of 2019, it was 126 million core kilometers, a year-on-year decrease of 23%.

China is the world’s largest broadband country, but its network coverage is far lower than developed countries and regions. As of the end of 2018, the penetration rate of fiber-optic broadband users was only 87%, while the penetration rate of fiber-optic broadband users in Korea reached 93% in 2008, and 90% in Japan in 2010.

According to the different deployment levels, operators’ optical fiber and optical cable deployment is divided into three types: long-distance optical cables, relay optical cables and access optical cables. As of the end of June 2019, China’s long-distance optical cable lines, local network trunk optical cables and access network optical cables accounted for 2.5%, 34.5% and 63% respectively.

3. Analysis of the competitive landscape of China’s optical fiber and cable industry

At present, the optical fiber and cable market is highly concentrated, with leading companies occupying a major share. These companies mainly include YOFC, Hengtong Optoelectronics, Zhongtian Technology, Fiberhome Communication, SD Information, Tongding Internet, Xinmao Technology, Yongding Shares, optical cables, etc.

Among them, YOFC has grown into the world’s largest optical fiber and cable company. In 2018, the revenue of optical fiber and cable business exceeded 10 billion yuan, reaching 10.418 billion yuan; in the second step are Hengtong Optoelectronics, Zhongtian Technology and Fiberhome Communications, and optical fiber and cable business. The revenue is between 5-10 billion; the other companies have relatively little fiber optic cable business revenue.

4. Analysis of the development trend of China’s optical fiber and cable industry

1. Existing optical fiber and optical cable and communication cable technology mature

After a long period of development, China’s fiber optic cables and communication cable technologies have gradually achieved national coverage to meet people’s needs. However, in this context, there are still many problems, such as insufficient coverage, insufficient transmission stability, and individuality. Shortcomings such as insufficient chemistry. Therefore, in the future, China’s fiber optic cable and communication cable technology will further develop to meet people’s needs. In the installation of optical fiber and cable, a new installation method will inevitably appear to make the installation of optical fiber and cable more convenient and safer and improve installation efficiency.

2. The gradual research and development of new optical fiber cables and communication cables

Due to the manufacturing characteristics of the optical fiber, the installation site of the optical fiber is required to have its own method has great limitations. At present, the emergence of new optical fiber cables will gradually solve this problem. Many engineers have also studied various new optical fibers and have achieved a series of results, which also provide a direction for the future development of optical fiber cables and communication cables. If it is suitable for the optical fiber with a long transmission distance, this kind of optical fiber is more efficient and fast in long-distance transmission, and there will be no information loss. There are also more durable optical fibers, which have a longer life span than all kinds of optical fibers on the market, which improves efficiency. There are also low-water peak optical fibers used in the construction of local area networks. This type of optical fiber can effectively reduce the cost, and can greatly increase the width of the broadband in a specific waveband, optimize the system, and increase the transmission distance.

With the advent of the 5G era, the development of next-generation network technology has gradually entered people’s sight. This is an opportunity and a challenge for the development of optical fiber cables and communication cables. Fiber optic cables and communication cable technologies should seize this time. Opportunities to further expand capacity, strive to increase transmission distance, develop various new optical fibers, actively adapt to the arrival of next-generation network technologies, and give play to their respective advantages to better serve the people.

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