Driven by multiple favorable factors such as 4G/5G network construction, FTTH (Fiber to the Home) implementation, three network integration pilot, western village connectivity project, and "light in copper out", China's fiber optic cable industry has shown good development momentum. China has become the world's major fiber optic cable market and the world's largest fiber optic cable manufacturing country, and has achieved remarkable achievements.

As an upstream component of fiber optic cables, it mainly consists of fiber preform rods, silicon tetrachloride, tetrachloride branding, and fiber optic cable equipment. The midstream is the processing and manufacturing of fiber optic cables; The downstream includes 5G fields such as operators, transportation fields (smart transportation), marine economy fields (submarine cables), and many other fields.

Upstream supply of fiber optic cables: orderly increase in production

Fiber preform is a quartz glass rod with a specific refractive index profile used to manufacture optical fibers, typically ranging in diameter from a few millimeters to several tens of millimeters. The internal structure of optical fibers is formed in prefabricated rods, which are the matrix and technical bottleneck of optical fibers.

With the support of the national anti-dumping policy for the development of the domestic optical rod industry and the continuous development of communication infrastructure, there is a large demand for optical rod products, and China's optical rod industry continues to develop. From 2014 to 2019, the production of fiber optic preforms in China increased from 4271 tons to 11098 tons. In 2020, the production of fiber optic prefabricated rods in China is expected to be around 12000 tons.

Downstream development of fiber optic cables: Dual gigabit plan drives demand for fiber optic cables

In 2020, facing the severe impact of the epidemic, China's communication industry resolutely implemented the decisions and deployments of the Party Central Committee and the State Council, fully supported epidemic prevention and control work, actively promoted the construction of a strong network country, achieved 5G network coverage in all prefecture level cities across the country, continuously improved the capacity of new information infrastructure, and provided strong support for accelerating the development of the digital economy and building a new development pattern.

The pace of network acceleration is accelerating, and the promotion of gigabit broadband services is constantly advancing. By the end of 2020, the total number of fixed Internet broadband access users of the three basic telecom enterprises had reached 484 million, with a net increase of 34.27 million in 2020. By May 2021, the total number of fixed Internet broadband access users of the three basic telecom enterprises will reach 505 million, a net increase of 21.61 million over the end of 2020.