Wang Yuanyuan: the growth rate of China's Optical Fiber Market in the Future will be slower than that of the past five years

SMM: "in 2017, the number of optical cables laid in the world was 4.8 to 490 million fiber kilometers, an increase of 12 percent over the same period last year, so from the point of view of the amount of laying, multi-mode optical cables account for a relatively small number of total, but they are high value-added products." Wang Yuanyuan began to introduce the current situation of the global optical fiber and cable market at the small Metal Summit.

"in terms of value, multi-mode optical cables account for about 10 percent of the world's consumption," she said. "China not only accounts for 58 percent of the world's consumption, it has contributed nearly two-thirds of the world's growth in consumption growth," she said. China's consumption for the whole year reached 2.8 to 2.9 fiber kilometers, an increase of 14 percent over the same period last year. in addition to China, there are other regional increments that are also very good. In addition, in other regions, such as Western Europe and the Asia-Pacific region other than China, the demand for optical cables is also very considerable. "

With regard to the demand for single-mode optical cables, Wang Yuanyuan said that after two quarters of development, the original expected value was found to be too conservative. because the market expectations were very good, after the December procurement bulletin was issued, It was determined that the demand situation in the second half of 2017 would be much better than in the first half. The laying of 5G in China will boost global demand for optical cables, and China Mobile is already one step ahead. under the leadership of China Mobile's 5G plan, other suppliers in China and around the world may have more aggressive 5G plans than originally expected. That's why we adjust our expectations.

She believes that 2018 will continue the strong momentum, in 2015, China Mobile announced a distribution plan, this is a 110 million plan, combined with the needs of other telecommunications companies in China, It is expected that the consumption of optical cables in China will reach 340 million kilometers in 2018, an increase of as much as 24 per cent. in terms of volume, it will exceed 60 percent of the total global consumption, led by this strong demand from China. Global consumption will also grow by 18 per cent in 2018, in the range of 85 million kilometres, and there will be different increases in other regions.

Finally, there are two main points that affect the amount of optical cable laying, one is the amount of data transmitted by optical cable in optical fiber, and the process of planning and capital of each operator's own network construction.

She expects China's fiber market to grow at a slower rate from 2018 to 2022 than in the past five years, and reminds everyone that China's current fiber consumption has exceeded 250 million fiber kilometers. It is also unrealistic to maintain double-digit growth in this volume.