Domestic Optical Cable Demand Will Enter A Stable Period

- Apr 21, 2020-

Domestic Optical Cable Demand Will Enter A Stable Period

 

In the past three years, the domestic optical cable collection and procurement scale has decreased year by year, and the overall demand will enter a stable period.

After the "cold winter" in 2019, optical fiber and cable manufacturers hope that 5G construction will once again stimulate the demand for optical fiber cables. But under the background that FTTH scale coverage has been completed, the demand for optical cables by operators such as China Mobile is decreasing year by year.


Domestic Optical Cable Demand Will Enter A Stable Period


Recently, China Mobile announced the bidding candidate for non-coaxial ribbon optical cable centralized procurement from 2020 to 2021. According to public information, the procurement scale of this centralized mining forecast is about 29,800 skin-long kilometers, equivalent to 5,968,800 core kilometers, and a maximum price of 353,263,600 yuan (excluding tax) is set. Distribution bidding is adopted and the number of successful bidders is 8-10 Home.

Although it is said that this is a collective procurement with a breakthrough in overall scale in the final year of this year, if we only compare the collective procurement scale of the same product in the past three years, we can clearly see that the demand for optical cables by operators such as China Mobile is decreasing year by year.

However, Gao Junshi, director of the China Mobile Communications Group Design Institute Cable Institute, once said at the "2019 Global Optical Fiber and Cable Conference" that the demand for 5G is smaller than that of FTTH. The overall demand will enter a stable period.

"The competition of 5G is the competition of optical communication infrastructure", which will bring a certain boost to the optical fiber and cable industry.


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