Page 38 - Market Analysis Report of Optical Communications Field in China & Global market 2019

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Figure 2: FTTH/B penetration rate of major countries yuan in 2018, up 41% year on year.
The total number of mobile Internet
applications reached 4.49 million
by the end of 2018, realizing full
scene coverage in all fields of basic
necessities.

5G Opportunities for China
On June 6 2019, the Ministry of
Industry and Information Technology
issued four 5G commercial licenses,
marking the first year of China’s
official 5G business. It is expected
that the direct output will be about
484 billion yuan in 2020 when 5G
is officially commercialized. By
2025 and 2030, the direct output
Q3, the total number of broadband users in the world has will increase to 3.3 trillion yuan and 6.3 trillion yuan
exceeded 1 billion. respectively, with an average compound growth rate of
29% in ten years. In terms of indirect output, in 2020,
In addition, the cost of FTTH network deployment in the 2025 and 2030, 5G will drive indirect economic output of
Asia Pacific region has increased by 10.1% in the past 1.2 trillion yuan, 6.3 trillion yuan and 10.6 trillion yuan
year. It shows that the growth rate last year exceeded respectively, with an annual compound growth rate of 24%.
the past five years. Among them, the number of users
accessing infrastructure services through optical fiber has From the perspective of output structure, the driving force
tripled, including FTTH, FTTB and other optical access of output growth has evolved with the deepening of 5G
technologies. Particularly, the number of FTTH users has business. In the early stage of 5G business, operators
increased significantly in some countries. carry out massive network construction, and the income
of equipment manufacturers brought by 5G network
By 2023, the FTTH network penetration rate will increase equipment investment will become the main source of
by 18% (about 6.49 million households); the number of 5G direct economic outputs. It is estimated that in 2020,
users will also increase, with a growth rate of 35% (about the total income of network and terminal equipment
576 million). will be about 450 billion yuan, and the investment of
telecommunication operators on 5G network equipment
2.Chinese Optical Communication Market will be more than 220 billion yuan. As 5G business
4G Promotes the Development of the Internet, and continued to develop, the revenue of Internet information
Drives the Breakthrough of the Whole Industrial Chain services related to 5G has grown significantly, becoming
Since the commercial application of 4G, mobile data traffic the main source of direct output. At the same time, the
has grown rapidly, and mobile data service has become the expenditure of 5G network equipment will also grow
main source of revenue growth for telecom enterprises. 4G steadily. It is estimated that by 2030, the revenue of
service also promoted the vigorous development of mobile Internet information service will reach 2.6 trillion yuan,
Internet, which has driven the breakthrough of the whole and the expenditure of 5G equipment in various fields will
mobile communication industrial chain. exceed 520 billion yuan.

According to statistics from 2014 to 2018, the total 4G Broadband Development in China
network investment of telecom enterprises was about 720 The level of broadband penetration is an important
billion yuan, and the total mobile data business revenue indicator to measure the social and economic development
was about 2.17 trillion yuan. The scale of information and the information innovation in a country and region.
consumption increased from 2.2 trillion yuan in 2013 to Every 10% increase in broadband population penetration
nearly 5 trillion yuan in 2018, with an average annual will lead to an average GDP growth of 1.38%, which will
growth rate of over 15%. The scale of online retail be even higher in developing countries.
increased from 1.8 trillion in 2013 to 9 trillion in 2018,
with an average annual growth rate of 38%. In 2018, In China, fixed Internet broadband access users continue
mobile terminal transactions accounted for more than to change their plans to high-speed rate, and the proportion
75%. The scale of the sharing economy reached 2.9 trillion of users with access rate above 100Mbps has steadily

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