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Accelerating the Construction of Optical Network in Midwest Region
2019-01-13 11:35:44

Reform and opening up 40th anniversary, the motherland is becoming stronger and stronger, and domestic enterprises are on the international stage. With the introduction and implementation of the policy of "one belt and one road", the pace of "going out" of Chinese enterprises is firm and rapid. In recent years, China's optical communication industry has developed rapidly, and has become the largest optical communication market in the world, shining gloriously in the global field. Optical fiber and cable enterprises rely on the "one belt and one way" national strategy, layout overseas markets such as Southeast Asia, Africa, etc., and have won overseas development opportunities for China's optical fiber and cable industry. Although overseas is a gold digging ground, the government and enterprises also emphasize going out to seek development, but optical fiber and cable enterprises should not ignore the domestic market. China's urban-rural and inter-regional development has always been unbalanced. Infrastructure in the central and western regions and remote areas is not perfect. Especially in the rural areas of the central and Western regions, there is still room for network construction.

The implementation of "broadband China" strategy has greatly promoted the speed and level of information infrastructure construction in China. Although remarkable achievements have been made, the information infrastructure construction in remote areas such as the central and western regions is still relatively scarce, and the speed-up of fiber-to-home and broadband still needs to be promoted. With the penetration of optical fibers to the home and the promotion of bandwidth acceleration in these areas, it is bound to bring certain increments to the demand for optical fibers and cables.

The 13th Five-Year Plan calls for the implementation of basic network improvement projects in broadband rural areas and small and medium-sized cities in central and Western regions, and speeding up the coverage of 4G networks in rural and remote areas. The Action Plan for Network Poverty Alleviation focuses on promoting 4G network coverage in rural and remote areas, giving priority to "three districts and three states", and achieving broadband access for over 90% of poor villages. To achieve network coverage, optical fiber network is indispensable as the basis, and the target of over 90% poverty-stricken village-to-village broadband is superimposed. This will certainly promote the pace of FTTH construction of operators, and the demand for optical fiber cable will show a certain growth trend.

Recently, the two ministries and commissions issued a circular on organizing and implementing the new generation of information infrastructure construction projects in 2019. They proposed that the basic network improvement projects of small and medium-sized cities should be organized and implemented for the central and western regions and the Northeast regions, and that the construction and expansion of optical cables, communication poles/pipelines, optical transmission equipment between county and town should be carried out, along with the continuous FTTH construction and expansion in these areas. Network expansion will bring new increments to optical fibre and cable to a certain extent.

Policies must be implemented. The active deployment and implementation of network infrastructure construction by provincial and municipal governments will bring certain benefits to the development of optical fiber and cable industry. The Henan government issued "Several Policies for Promoting the Development of Big Data Industry in Henan Province", which requires that from 2018 to 2020, 10 million yuan be spent annually to support the construction of broadband network infrastructure in the whole province, with emphasis on promoting the construction of broadband network infrastructure in rural areas. Continuous fixed-line broadband access and FTTH/O construction provide a certain impetus for the improvement of the demand for optical fiber cable.

The Guangxi People's Government issued the "Three-year Plan of Action for the Battle of Digital Guangxi Information and Communication Infrastructure (2018-2020)", striving to invest 57.76 billion yuan to deploy and promote the construction of digital Guangxi Information and Communication Infrastructure, focusing on promoting the construction of urban and rural optical fiber network. The goal is to achieve the coverage of optical fiber network to 100% of administrative villages, and the access capacity of optical fiber network users to reach more than 100 Mbps. Bandwidth speed-up needs optical network transformation as support, superimposed FTTH construction, so it will inevitably bring about the growth of demand for optical fiber cable. In addition, the action plan clearly calls for speeding up the 5G network layout, speeding up the 5G network pilot in Nanning, and promoting the construction of 5G network in all districts and municipalities. Due to the high frequency band of 5G network, which leads to poor coverage, small base stations need to be introduced, which requires optical fiber to connect. With the maturity of 5G technology, whether high-frequency networking or low-frequency increasing point, more optical fibers are needed as support, which will directly drive the demand for optical fiber cable.


A glimpse reveals the whole leopard. The central and western regions of China need a wide area of optical network construction. Some of the network infrastructure in the central and western regions and remote areas is still very weak. The government and operators are also increasing the construction of their information infrastructure. For optical fiber cable enterprises, there is still a certain market development space in the central and Western regions and remote areas.


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