Page 40 - Market Analysis Report of Optical Communications Field in China & Global market 2022

C H I N A
5G ultra dense networking poses new demands for distribution In the era of comprehensive cloudization, the future new
and remote optical cables. The access and return of 5G base data centers will present an intensive, green, and intelligent
stations require optical fiber resources, and optical fiber cables development trend. At the same time, with the development
are an important cornerstone of 5G information transmission of 5G and the industrial Internet, the requirements for network
networks. The orderly advancement of 5G network construction latency in data centers are becoming more stringent. Large data
has brought about an incremental market for optical fiber, centers have been unable to meet the requirements for real-time
which will continue to promote the development of the optical and privacy protection for processing massive data and private
fiber market. In addition, the adoption of an independent data. In the future, there will be a collaborative development
networking model for China's 5G scale construction will also between large data centers and edge data centers.
benefit the development of the optical fiber and cable industry.
Fixed broadband has entered the gigabit era, and the demand 3. Major centralized procurement of Chinese operators
for optical fiber is growing. In March 2021, the Ministry of (1) Overview of major centralized procurement of Chinese
Industry and Information Technology issued "Double Gigabit" operators in 2022
Network Collaborative Development Action Plan (2021-2023).
The plan proposes that by the end of 2021, gigabit fiber optic
networks will have the ability to cover 200 million households,
with gigabit broadband users exceeding 10 million, and more
than 20 gigabit cities will be built; By the end of 2023, gigabit
fiber optic networks will have the ability to cover 400 million
households, with gigabit broadband users exceeding 30 million,
and 100 gigabit cities will be built. By the end of September
2022, the total number of fixed Internet broadband access users
of the three basic telecommunications companies had reached
578 million, a net increase of 42.57 million compared to the
end of the previous year. The acceleration of gigabit broadband
construction will also bring about an increase in the demand for
optical fiber.

2. Data Center
At present, digitization is becoming a core force driving
economic development and social transformation in major
countries around the world. In China, the "Eastern Digital
Computing and Western Computing" project was fully
launched in 2022, accelerating the collaborative construction
of backbone networks and data centers. According to the "Data
Center White Paper (2022)" released by the China Academy of
Information and Communications, the scale of data center racks
in China continues to grow steadily, and the scale of large and
above data centers is growing rapidly. According to the statistics
of 2.5kW standard racks, the scale of data center racks in use in
China has reached 5.2 million, with a compound annual growth
rate of over 30% in the past five years.
Rack size of China's data center

In 2022, the centralized purchase of optical fiber and cable
by the four major operators showed a trend of rising both in
quantity and price, fully boosting the prosperity of the optical
communication market.
As the world's largest demand party for optical fiber and cable,
China Mobile's centralized procurement is regarded by the
market as an industry vane. In October 2021, China Mobile's
general cable centralized procurement scale was about 143
million core kilometers, with an average bidding price of about

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