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China Mobile Recently May Launch The Central Procurement, The Fiber Optic Cable Is Expected To Be In The Vents
Oct 26, 2017

China Mobile recently may launch the central procurement, the fiber optic cable is expected to be in the vents


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Previously, China unicom launched the bidding for the central procurement of optical cables main line for the 2017-2018, which is about 630,000 fiber core kilometers and contains 266 types of main fiber optic cables.

In the past years, China mobile is expected to launch the 2018 central procurement of optical fiber. In terms of its broadband construction, the demand for optical fiber will increased greatly in 2018. In addition, the 5G network is expected to start construction in 2019. And the transmissions of the prequel, midquel and return-quel will lead to new optical fiber demands.

In addition, it is possible that the price of optical cable will be increased in the central procurement due to the demand exceeding supply and raw material cost rise. At the same time, the large-scale construction of data center has further enhanced the demand of fiber optic devices. Therefore, judging from the demand side and the cost side, fiber optic cable is expected to stand in the vents.

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On Data Level

According to the existing data, 2015-2017, China mobile, China unicom, China telecom cable accumulative total, in turn, is in the tender amount 91.76 million core kilometers, 115.46 million core kilometers, 207.93 million core kilometers of fiber cables, with year-on-year growth of 98%, 26% and 80% in turn. With the further development of optical fiber access, the central procurement in 2018 will very probably be higher than that of 2017.

The price level

According to the existing data, China mobile optical fiber prices in the central procurement have continued to move up in the recent three years: It was 55 rmb/core.km in 2015, while in 2017 the price offer is 65-70 yuan/core.km. Whats more, China telecom, China unicom have also rised prices in the central procurement.The three main operators in China all increase the procurement price and quantity, reflecting the high demand for fiber optic cable in China.

The Level of Central Procurement Structure

According to the data of the fiber optic cable central procurement in 2017, the China Mobile’s intensive bidding in China is 62%, China unicom 21% and China telecom 17%. So China Mobile demands far more than the other two operators. It is worth noting that China Mobile's average monthly new fixed-line broadband users is also much higher than that of China telecom and China unicom. Its sustained investment in broadband will promote the high demand for fiber optic cables.

As a result, China Mobile's upcoming new year central procurement is bound to attract a lot of attentions.

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