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Fierce competition homogenization fiber industry the overall decline in profits

Information Source:Henan Huadong Cable Co., Ltd  Release date:2014-04-11

Countries "1025" planning step by step, has brought the new opportunity for the development of optical communication industry. As "broadband Chinese" strategy, domestic 4G licences issued, three nets fusion promotion of smart grid, fast construction, 100G system on a large scale in, form the whole positive for optical communication industry.

However, on the one hand, optical communication industry, the market demand in the high growth; on the other hand, presents the overcapacity industry, opportunities and challenges coexist.

The national macroscopic policy to the optical fiber and cable industry development will bring positive influence, drive the industry expanding market capacity, industry leading enterprises to further expand the scale of production, but also attract new competitors from entering the cable industry, an increasingly competitive industry. The main customers of optical fiber and cable manufacturers for major operators to telecommunications, electric power, including China Mobile, China Telecom and China State Grid Corp, South Power Grid Corp, customer focus, operators of the procurement by centralized bidding, in recent years the bidding price continues to decline, industry profits continue to compress.

Communication cable industry in China is fully open industry, enterprises to seize the market have rapid expansion, communication cable production capacity in the whole industry chain has excess, common product homogeneity fierce competition, product prices especially fiber prices fell significantly, industry profitability overall declining trend. Industry competition from the 2013 4G pre orders into competition, cost, production capacity and industry chain and the overall strength of the strategic layout of the competition.

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