Page 39 - Market Analysis Report of Optical Communications Field in China & Global market 2019

Figure 3: China's 5G direct economic output structure in construction of 3G/4G networks and fixed networks. For
2020-2025 (unit: 100 million yuan) instance, Indian operator Reliance Jio is making energetic
efforts for the construction of FTTH based on optical fiber.
It plans to provide FTTH in more than 1000 cities, and try
to introduce 5G into India. Moreover, the implementation
of Indonesia’s National Broadband Plan encourages
the Indonesian government to increase investment in
communication infrastructure, especially in the construction
of submarine cable, land cable and FTTH. It is estimated
that by the end of 2019, the urban broadband penetration
rate will increase to 30%, and 71.5% of the household
bandwidth will reach 20MBps. Also, the popularization
of broadband access rate of 1Gbps will be realized for all
buildings. In addition, China Telecom cooperates with
increased. By the end of June, the total number of Telco and Mislatel in Philippines in network construction
fixed Internet broadband access users of the three basic and launches 4G and 5G network operation services. As the
telecommunication enterprises had reached 435 million, fourth largest country in Europe, Germany has 4.35 million
with a net increase of 27.37 million in the first half of the fiber kilometers of cable laid in 2018, and is expected to
year. Among them, 396 million FTTH/O users account for have 4.95 million fiber kilometers of cable laid in the end
91% of the total fixed Internet broadband access users. The of 2019, with an increase of about 14.1% year on year.
number of users with access rate above 100Mbps reaches Overseas markets, especially developed countries in Europe
335 million, accounting for 77.1% of the total number of and the United States, have a strong demand for optical
users, 3.4 and 6.8 percentage points higher than that in the fiber and cable. It is estimated that the global demand
first quarter and the end of last year respectively. for optical cables is 470 million fiber kilometers, and the
demand for optical cables in the Chinese market will drop
II.Analysis of Optical Communication from the peak of 324 million fiber kilometers in 2017 to
Market in 2019 230 million fiber kilometers in 2019.
(I) Market Scale and Characteristics of Optical
Fiber and Cable However, due to the change of supply and demand in the

1. Current Situation of Global Optical Chinese market, the price of optical fiber cable is decreased.
Fiber and Cable industry Clients in the overseas market take a wait-and-see attitude
Global Demand for Optical Fiber and Cable is towards the price of optical fiber cable in the Chinese
Flourishing market and expect a lower price. At present, 235 operators
Under the promotion of national policies, telecommu- in 93 countries are investing in 5G, and 5G construction
nication operators in developed and developing countries is gradually transforming from pilot to scale construction.
are speeding up the construction of FTTH and 4G The demand growth and reasonable price recovery are in
networks, and the deployment of 5G. In countries like expectation after the large-scale construction of 5G.
Southeast Asia and Europe, the economic development
and local national policies are vigorously promoting the Main Driving Force of Demand Growth of Optical
Fiber and Cable
Figure 4: Proportion of fixed Internet broadband access users with In 2019, mainstream operators have launched
FTTH/O and 100Mbps or above access rate from 2018/6 to 2019/6 5G commercial plans and services around the
world. In order to meet the needs of high speed,
low latency and super connection, the demand
for optical fiber and optical cable will grow with
the fiber-optic connection of base stations and
the new construction of large-capacity carrier
network.
Optical fiber, as the neural network in the 5G
intelligent era, plays an important role in 5G
network transmission. With the continuous
expansion of 4G and 5G network wireless access
hubs, optical fibers will be in huge demand to
meet the growing needs. The demand for optical
fiber will increase substantially with the 5G
network construction in the next 5 to 10 years.
39