Industry Trends: The cake is big enough, still cannot eat full, how does optical communication manufacturer increase income
Recently, China Mobile announced the winning candidate for the general optical cable collection in 2020-2021. Changfei firmly occupied the leading position with a share of 9.44%, followed by fortis, Hengtong, Fiberhome and other giants, which accounted for nearly 70% of the orders.
In the face of new low prices, although early psychological preparation, but the industry is still in an uproar. Every year the three major operators of the general optical cable collection is the main source of revenue for the major manufacturers, based on past experience, China Telecom and Unicom must follow up the mobile price limit strategy, synchronously significantly reduce the maximum bidding price limit.
Due to the huge investment cost in the early stage of 5G network construction, the three operators have to cut costs through constant price caps under the impact of the current low commercial profit expectations. The total mileage of this gathering has increased from 105 million core km to 119.2 million core km, a year-on-year increase of 13%. Although the scale is larger, but prices continue to fall sharply, from last year's peak of more than 60 yuan directly to more than 20 yuan, can be cut in half after another 30% discount.
Moreover, China Telecom and China Unicom have reached relevant cooperation agreements to make full use of their respective regional resource advantages, realize the joint construction and sharing of 5G base stations nationwide, and effectively save the upfront investment cost. China radio, Television and Mobile have also joined hands to form a "2+2" strategic pattern in the commercial field of 5G.
Such a move is good for saving spectrum resources and construction costs, but it is not good news for the major fiber optic cable manufacturers, business volume and profitability will be affected to a certain extent.
To sum up, although the new infrastructure wave has injected strong vitality into the optical communication industry, major manufacturers should build differentiated capabilities and form core competitiveness on the basis of their original technical capabilities, and pursue development through innovation, so as to better meet the opportunities and challenges in the 5G era.
Under the tide of 5G construction, Qingdao Guangying has forged ahead and actively developed, forming an industrial chain layout with passive wave division as the main component and PLC, pull-cone optical divider and optical switch products as the auxiliary component. It is expected to achieve a growth rate of 10% of the turnover in 2020.