Recently, director general of the state department of information and communication development and spokesperson wenku introduced the progress of speeding up and lowering fees in China in the first three quarters of this year.

Wen said that in recent years, the ministry of industry and information technology of the People's Republic of China (miit) has organized special actions to speed up and reduce costs to promote high-quality development of China's broadband network, with many indicators ranking top in the world. By the end of September, 88 percent of the country's broadband fiber users had access to the Internet. As of September this year, more than 60% of China's broadband users have used 100M or more, and some users have also used 200M, 500M or even Gbit broadband services.

It is not difficult to find that in recent years, China's broadband network construction has made substantial progress. It is precisely because of the promotion of national policies that the fiber optic cable industry has shown a high prosperity. From a certain level, broadband network construction has become the main boost for the development of the optical fiber and cable industry.

According to the 13th five-year plan for national informatization, by 2020, the bandwidth of household users in large and medium-sized cities will be more than 100Mbps, and that of more than half of rural households will be more than 50Mbps. Bandwidth acceleration needs optical network transformation as a support, so it will stimulate the demand for optical fiber and cable, and then stack the impact of bandwidth acceleration, as well as the upcoming 5G power, the development of optical fiber and cable industry is still expected.

According to the "fiber optic fiber industry development prospects and investment forecast analysis report" statistical data released by the forward-looking industrial research institute shows that in the first half of 2018, global demand for fiber optic increased by 10.5%, of which China's demand for fiber optic increased by 15%. It is estimated that by 2021, the global demand for optical cables will be 617 million core kilometers, and the demand for optical cables in China will be 355 million core kilometers, accounting for about 57% of the total demand in China. It can be seen that the domestic demand for optical fiber is very strong.

Domestic demand is strong for four reasons

Broadband operators around the broadband construction needs, especially China mobile. Free broadband through marketing strategies. Fixed-line broadband users are rapidly approaching unicom and telecom, the number of users in less than half a year has exceeded 100 million, one action and the two big brothers sit flat. In addition, the construction of high-speed railway WiFi will further increase the demand for optical fiber, where there are railways, there are optical fiber.

Major operators are building base-stations for 5G networks. Due to the high frequency band of 5G network, coverage becomes poor. Operators have to introduce a lot of small base stations, which are expected to be tens of millions of applications in the market, which requires a lot of optical fiber to connect.

The development of 5G networks and cloud service providers will further drive the construction of a large number of data centers in China. Cloud service giants are building a large number of data centers across the country. Data centers need high-speed optical fiber to transmit data, which drives the demand for optical fiber.

The ministry of commerce has decided to extend the anti-dumping policy for five years against prefabricated fiber rods from the United States and Japan and non-dispersion-shifted single-mode fiber fibers from the United States. This policy leads to the tight supply of domestic optical fiber market, and the price of optical fiber increases, which greatly benefits domestic optical fiber enterprises.

One Belt And One Road drives demand

"One Belt And One Road" strategy has been implemented for five years, and the results are gradually emerging, especially in the field of optical fiber. As mentioned above, changfei optical fiber has established joint ventures in myanmar and South Africa, and changfei Indonesia was officially put into production in March 2018, with overseas revenue of 1.16 billion yuan in 2017. Due to the large number of developing countries in the territory of "One Belt And One Road", the Internet industry is in a period of rapid development, and the demand for optical fiber is very strong.