C114 News, October 27 (Shuiyi) On October 26-28, 2020, the World Fiber Optic Cable Conference held an online conference, which is the world’s top event in the fiber optic cable industry, gathering more than 100 telecom network executives, fiber optic cables Manufacturers’ representatives, solution providers’ representatives and technical experts attended the event and discussed how to get rid of the crisis of the post-popular era and accelerate industrial development.
CRU Cable TV Director Michael Finch said that 2020 is an unforgettable year. Structural changes have taken place in the way people work and socialize. The optical fiber network plays an important role in this process. In addition, since the beginning of 2000, the telecommunications industry is facing one of the most significant challenges.
Michael Finch pointed out that despite the current impact of COVID-19, the global optical fiber and cable industry is facing the dilemma of declining income, production stalls, shortage of skilled workers and sharp decline in demand. However, driven by the future 5G, data centers, edge computing, Internet of Things, smart cities, FTTH and some stimulus measures, the optical fiber and optical cable industry will usher in a strong recovery.
When reviewing the impact of COVID-19 on the optical fiber and cable industries, Michael Finch said that under the influence of the epidemic, most operators have slowed down the construction of fixed and 5G networks, thereby reducing capital expenditures and greatly Affected the global optical fiber and cable industry. demand
On a quarterly basis, the global demand for optical fiber cables in Q1, where the epidemic was the worst, was about 100 million core kilometers, down 12% year-on-year; Q2 demand was about 114 million core kilometers, down 6.3% year-on-year; by Q3, the epidemic situation With the slowdown, operators have gradually resumed the progress of network construction, and the demand for optical cables has begun to rebound, with approximately 129 million core kilometers, an increase of 46% year-on-year.
Looking forward to Q4, from the current October CRU FOCI index (Fibre Optic Cable Index, a core index of a monthly survey focusing on the optical fiber and cable market), the demand for optical fiber cables has contracted slightly that month. In terms of regions, demand in Europe, the Asia-Pacific region (except China), China, and South America has contracted to varying degrees, while the North American market has achieved growth. In other respects, prices have become an index of greater contraction.
In Michael Finch’s view, the global optical fiber and cable industry is currently in a slow recovery cycle, and the entire industry is likely to undergo mergers and acquisitions. It is estimated that by 2021, the epidemic will be brought under control, the global economy will return to normal, the fixed network and 5G construction of operators will be on track, and the global demand for fiber optic cables is expected to increase by 7%. At the same time, driven by the ubiquitous fiber optic network, the demand for fiber optic cables will maintain a relatively stable growth in the next few years.
Post time: Dec-23-2020