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In 2017, China's optical fiber and cable market remained 20%...

Published in2017-02-20

  1. Recently, the view that, in China Mobile vigorously invest in optical fiber access and network traffic continued explosive growth in the background, in 2017, China's fiber optic cable market will continue to show the volume and price rise.

    Domestic fiber optic cable demand growth in 2016 will reach about 40%, will continue to maintain more than 20% growth in 2017. The main reasons are as follows.

    First, China Mobile has achieved an absolute lead in 4G construction over the past 2014-2015 years, while broadband access is still lagging behind. In December 2015, the 31 billion 900 million acquisition of China Tietong, officially sounded China Mobile vigorously build fiber-optic access horn. We expect that China Mobile's 2016 net profit is expected to reach $150 billion, laying the foundation for China's largest broadband access operator in three years.

    Second, the government pushes the rural electricity supplier and eliminates the digital gap, which is an important measure to support the development of agriculture, rural areas and farmers in the new era. Strive to achieve about 50 thousand administrative villages through broadband in 2020, so that broadband coverage of 98% of the administrative villages, is expected to total investment of more than 140 billion yuan.

    In addition, the market worried about the high boom in optical fiber and cable volume and price, companies will greatly expand production capacity, more than the growth rate of demand, leading the entire industry once again into a bad situation of overcapacity. Through the industrial chain research, with a view, after years of excess capacity in labor pains, optical fiber and cable industry pattern has been stabilized, the company production capacity expansion careful follow-up once again into the possibility of vicious price competition is not.