ICCSZ has passed half of 2018. Looking back on the development of optical communication industry in the first half of the year, the national policy, the importance and investment of operators, and the construction of 5G and IDC data centers are all promoting the development of optical communication industry in a positive direction.

So what is it that continues to fuel the development of optical communications?

National policy has always guided the direction of industrial development, so that the national economy can develop healthily and sustainably.

“Broadband China”, “along the way”, “speed up and reduce fees” and other national policies have greatly promoted the development of China’s optical communication industry.

The “Three-year Action Plan for Major Construction of Information Infrastructure” promulgated in 2017 calls for the construction of a new batch of high-speed backbone lines, expansion of a batch of broadband access networks, upgrading of a batch of application infrastructures and layout of a batch of overseas information channels. By 2018, 90,000 kilometers of trunk optical cables will be added, 200 million new fiber-to-home ports will be added, and cities and towns Regional optical network coverage has injected new impetus into the development of optical communication industry.

By 2020, the broadband network will cover urban and rural areas in an all-round way, and the popularity rate of fixed broadband households will reach 70%. These policies will help to support the development of the optical communication industry and create a good opportunity for the development of the optical communication industry.

In addition, a new round of anti-dumping measures against imported optical fiber prefabricated rods and optical fibers has been issued successively, which has also created a good environment for the development of China’s optical communication industry.

According to the national plan and layout, these policies will continue to play a strong role in promoting the development of optical communication industry in 2018.

China Mobile, China Unicom and China Telecom, as the “national team” of the telecommunications industry, have been continuously increasing the construction of optical communication network. The huge market demand has led to the rapid development of the optical communication industry.

In 2017, the three major operators have carried out large-scale optical fiber cable collection.

At present, three operators have also started the optical fiber gathering and acquisition plan in 2018. China Telecom started introducing 4 million core kilometers of optical cable and 50 million core kilometers of outdoor optical cable gathering in 2018; China Unicom is expected to be 30-40 million core kilometers.

Recently, China Mobile also launched the first batch of common optical cable products collection in 2018. It is estimated that the purchase scale of ordinary optical cable is about 35.93 million skin-long kilometers (110 million core kilometers).

In addition, combined with the demand of radio and television, national network and private network, the total number of core kilometers can reach 330 million. It is estimated that the domestic demand for optical fibre and cable will increase by more than 20% in 2018. In the background of slower expansion of production capacity, the supply and demand pattern of fibre and cable continues to be tense. The market expects once again that in 2018 there will be a “price-volume rise” situation, and the demand for supporting optical devices and optical communication equipment will be correspondingly increased.

At present, China’s 5G construction has been accelerating, and good progress has been made in terms of standards, spectrum planning and system architecture.

According to industry estimates, 2018 is the first year of 5G development, and the rapid development of 5G has a positive impact on the development of optical communication industry. According to Fiber Broadband Association, the consumption of 5G optical fiber will be 16 times higher than that of 4G, and in China, it is estimated that the consumption of 5G optical fiber will be 2-3 times higher than that of 4G.

In addition, optical module, 5G base station construction is expected to bring tens of millions of levels of 25/50GHz high-speed module usage; as the 5G architecture enlarges the return/transfer/forward capacity by tens of times, up to tens of hundreds of Gbps, it will also bring about the improvement of the demand for high-speed optical access network and optical devices.

IDC construction, according to industry forecasts, by 2019, 99% of global telecommunications network traffic is related to data centers. From 2015 to 2020, the annual composite growth rate of DCI traffic will reach 31.90%. In order to achieve high-speed long-distance transmission applications, the demand for DCI interconnection drives the growth of demand for high-speed optical modules, which greatly promotes the prosperity of the optical communication industry.

It is believed that with the promotion of 5G construction and the help of new application fields such as Internet of Things and Cloud Computing, China’s optical communication industry in 2018 is still worth looking forward to.