Benefiting from the construction of the 5G network, the 4G network is gradually improving, and broadband China continues. In the first half of the year, the top five listed companies of domestic optical fiber manufacturers saw an average year-on-year growth of 22.44% and a profit of 27.42%.
According to the “Global Optical Fiber Consumption” of the internationally renowned statistical agency CRU, global optical fiber demand increased by 10.5% in the first half of 2018, of which China’s optical fiber demand increased by 15%. It is estimated that by 2021, global optical cable demand will be 617 million core kilometers, and China’s optical cable demand will be 355 million core kilometers. China’s demand will account for about 57%. It can be seen that the domestic demand for optical fiber is very strong.
China Mobile’s fixed-line broadband subscribers are rapidly approaching China Unicom and Telecom. In less than half a year, the number of subscribers exceeded 100 million, and they were on an equal footing with the two big brothers. In addition, the construction of high-speed rail WiFi will further increase fiber demand.
Major operators are building base stations for 5G networks. Due to the higher frequency bands of 5G networks, coverage has deteriorated. Operators must introduce a large number of small base stations, which are expected to be in the tens of millions of applications in the market, which requires a large number of optical fibers to connect.
The development of 5G networks and cloud service providers will further drive the massive construction of data centers in China. Cloud service giants are building a large number of data centers across the country. Data centers require high-speed optical fibers to transmit data, which has further driven the demand for optical fibers.
In addition, due to the large number of developing countries on the “Belt and Road”, the Internet industry is in a period of rapid development, and the demand for optical fiber is very strong.
KSD Optical Fiber has established cooperation in Myanmar and South Africa, and the Indonesian company officially put into production in March 2018. Overseas revenue in 2017 was 1.16 billion yuan.
The three major operators are also actively responding to policies, such as the Silk Road Optical Cable Project constructed by China Telecom, which is constructing terrestrial optical cable systems across Central Asia, South Asia, and Western Asia, and has a great demand for optical fibers.
Domestic optical fiber manufacturers have gone abroad and established local branches or joint ventures along the “Belt and Road” with local resources, thus radiating the brand to the world.
Post time: Jun-02-2021