Ovum Foresees Chinese Dominance in FTTx Market

China being a big country in terms of population, geography and economic growth have the highest potential for growth in communication sectors too. This is especially true for the growth of optical fiber communications in China. Chinese telecom operators and service providers have been deploying fiber optic cables to build sufficient infrastructure to meet increasing bandwidth requirement that has been driven by the deployment of FTTx networks.

China consumed almost half of the total of approximately 190 million kilometers of optical fibers consumed globally. Market research firm Ovum says the Chinese dominance will continue for some more years. China has been deploying fiber optic cables on a massive scale for the past some years. The market surveys show that FTTx subscriber growth in China is huge and will continue for the coming years.

There are more than 35 companies making fiber optic cables in China. Two companies manufacture submarine fiber optic cables. Approximately 17 have capabilities to draw optical fibers. Almost all global fiber optic leaders have their operation in China and almost all of them produce optical fiber or fiber optic cables for the domestic market. Few of them come out of China to supply fiber optic cables to neighboring countries especially. Still, China imports optical fiber from other countries.

Ovum reports that China will have 100 million FTTx subscribers by the year 2016. According to the data published by FTTH Council on December 2010 to update the countries with more than 1% FTTH/FTTB penetration, China was ranked at the 21st position with 2.6% fiber broadband household penetration. At present China’s ranking is not so promising, but soon Chinese FTTx subscribers will reach 100 million and that will be more than 50% of the world’s FTTx subscribers.

Ovum reports say that Chinese FTTx suppliers Huawei and ZTE will continue to hold their leading positions for years to come. Huawei and ZTE enjoy the first and second position in terms of market share of FTTx products. The price competition posed by these giants is unbeatable and they will continue enjoying their status both in the domestic market and outside China as well.

Though Japan and South Korea are the leaders in Fiber optic broadband deployments and developing FTTx products, the growth in these countries has come to a stagnant rate. Japanese and Korean FTTx vendors find it difficult to compete with Chinese FTTx vendors.

Principal analyst of Ovum, Julie Kunstler reports that China is the biggest consumer of FTTx equipment currently and that is going to continue. Greenfield deployments have also increased in China due to continuing economic growth.

Ovum says that Huawei and ZTE are the biggest exporters outside China and in the fourth quarter of 2010, 50 percent of the total FTTx equipment revenue in EMEA corresponds to shipments by Huawei and ZTE.

Read also MNC to Offer 200Mbps Broadband Speeds in Indonesia 

Author: Kaniya

Leave a Reply

Your email address will not be published. Required fields are marked *