The optical cable industry will benefit from the Broadband China strategy

On the afternoon of February 18th, the State Council Information Office held a press conference. Zhang Feng, Chief Engineer and spokesperson of the Ministry of Industry and Information Technology, revealed that the Ministry of Industry and Information Technology will continue to implement the "Broadband China 2014 Special Action" this year to promote the improvement of the development level of broadband. The promotion of China's national policies on broadband provides network infrastructure support for achieving economic transformation, while also directly benefiting optoelectronic cable enterprises.

"Information is closely related to social life and has brought unlimited business opportunities," said Yu Xiaohui, Chief Engineer of the Telecommunications Research Institute of the Ministry of Industry and Information Technology. "The implementation of the broadband strategy in China will require an investment of approximately 2 trillion yuan from now to 2020," said Shang Bing, Deputy Minister of Industry and Information Technology of China, in an interview with reporters.

The "Broadband China" strategy and 4G will undoubtedly bring a new round of high-speed development to the optical communication industry, and also drive the development of the fiber optic cable industry, which is a great news for the domestic wire and cable industry.

In recent years, the demand for fiber optic cables in China has remained relatively large, and the huge investment from China Mobile and China Telecom has become the main driving force for the domestic cable market. With the popularization of broadband and the advancement of acceleration projects, the demand for fiber optic cables will accelerate. In the next 2-3 years, the demand for bending resistant fiber optic cables will continue to grow, with butterfly cables growing by over 30% annually.

China's first fiber optic manufacturing enterprise, FiberHome Communications, stated in an interview with our reporter at the Optical Expo that in the context of the big data era, the fiber optic cable industry is still a sunrise industry and has advantages compared to the cable industry.

"The policy environment in China has greatly promoted the development of the domestic fiber optic cable market. It is expected that the annual demand for China's fiber optic cable market will remain at 130 to 140 million core kilometers in the next two to three years." Qian Jianlin, Vice President of Hengtong Group, said in a speech at the 2nd Asia High end Wire and Cable Summit.

Chen Baoping, Technical Director of FiberHome Communication Cable Production Line Soft Fiber Cable Product Line, stated that the broadband China strategy is undoubtedly beneficial for optical cable enterprises. For optical cable enterprises, it is necessary to continue to expand upstream and downstream through technological innovation, accelerate the transformation from single optical cable products to integrated communication system solutions, and welcome new development opportunities.

Affected by the national "Broadband China" strategy, China's optoelectronic cable industry is currently at its peak. However, the low concentration of the industry and severe product homogenization have further upgraded the competitive situation among domestic manufacturers. The future will be a world where the strong become stronger. China's optoelectronic cable enterprises should accelerate their extension to the upstream and downstream industries through technological innovation, shift from single optical cable products to integrated communication system solutions, and embrace new development opportunities.