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Talking about the Prospect of Optical Fiber Communication:absolute demand slowly growth

[来源：XYTSHARETOP] [日期：2021-11-19] [点击数：1315]

1、The meaning of optical fiber communication

Optical fiber communication is a communication method that usesoptical waves as a carrier wave and optical fiber as a transmission medium to transmit information from one place to another. It is called "wired" optical communication. Nowadays, optical fiber is far superior to the transmission of cable and microwave communication due to its transmission frequency bandwidth, high anti-interference ability and low signal attenuation, and has become the main transmission method in the world communication.

2、Development trend

2.1 Supply side: volatility

As the optical fiber communication system was gradually put into commercial use in the 1980s, the high bandwidth and low attenuation of optical fiber have made optical fiber communication technology develop rapidly on a global scale.

With the further development of Internet services, the construction of mobile communication networks, and the continuous realization of new applications such as the Internet of Things and cloud computing, the optical fiber and cable industry will usher in broader development opportunities.

With the sustained and rapid development of my country's economy, and driven by national policies such as "Broadband China" and "Three Networks Convergence", my country's 5G, Internet of Things, electronics, military and other communications fields continue to increase the market demand for fiber optic cables. However, due to the impact of the new crown pneumonia epidemic, the global demand for fiber optic cables is sluggish.

According to data from the National Bureau of Statistics, the trend of China's optical fiber cable production is showing a fluctuating trend; from 2016's 324.49 million core kilometers fluctuated down to 288.78 million core kilometers in 2020. In the first quarter of 2021, my country's optical cable output reached 64 million core kilometers.

2.2 Demand side: a new round of demand

According to the website of the Ministry of Industry and Information Technology, in 2020, the length of new optical cable lines will be 4.28 million kilometers, which will still achieve steady growth. In 2020, the three basic telecommunications companies and China Tower Co., Ltd. completed a total of 407.2 billion yuan in fixed asset investment, an increase of 11% over 2019, and the growth rate increased by 6.3 percentage points year-on-year. In addition, China Radio and Television plans to start the large-scale construction of the 700M5G network this year, which will also strongly promote the process of large-scale 5G construction. As the construction of my country's fiber optic broadband access network and 4G mobile communication base stations is basically completed, the construction focus of operators is gradually shifting to 5G and fiber optic network upgrades, which is expected to bring a new round of demand.

2.3 Market prospects: absolute demand but slower growth

In recent years, driven by my country's large-scale communication construction needs, my country's optical fiber and cable industry has developed rapidly, and a complete industrial chain has been formed from optical fiber preforms-optical fibers-optical cables-optical network products. China has become the world's most important fiber optic cable market and the world's largest fiber optic cable manufacturer.

Since the laying of optical fibers in the bearer network during the 4G period in my country has been relatively saturated, the incremental demand during the 5G period is not as much as imagined. According to CRU's forecast, global and Chinese fiber optic cable demand will reach 617 million core kilometers and 355 million core kilometers respectively in 2021, 3-4 times that of 4G. Although absolute demand is still growing, the compound annual growth rate of overall 5G demand is only 5%.

Sharetop established its growth at a time when the market demand for optical fiber and cable in my country's communications field continued to grow. It is a professional optical fiber network transmission solution provider integrating R&D, production and sales. Since its establishment 10 years ago, Sharetop The most cost-effective products and services create the greatest value for customers, and continue to provide customers with a full range of optical communication products, solutions and services, to solve the customer's shortage of optical fibers, large and complex transmission services. Sharetop actively explores and develops steadily. It has service outlets all over the country and Southeast Asia. It has been focusing on enterprise private networks, data centers, carrier backbone transmission networks, 4G/5G base station fronthaul, ISP company transmission networks and other fields, providing relevant enterprises with the best Suitable optical transmission solutions and optical transmission products.

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