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The rapid growth of optical fiber communication optical module business fierce market competition

5/17/15  |  Industry News

An optical fiber communication cable, consisting of two or more glass or plastic fiber core composition, the coated optical fiber located within a protective coating, a plastic PVC outer sleeve covering. Optical communication is the physical basis of the entire Internet economy.

4G era, mobile Internet ushered in the best opportunities for development, according to the different characteristics of the three operators have different needs: China Mobile for the most-anticipated 4G, this disadvantage can change the network after five years as a result of its own operational TDS3G; China Unicom, the most calm, because now WCDMA3G network also sufficient, even after the speed after the upgrade is not much slower than China Mobile's 4G; China Telecom the most tangled, 4G will make it operational as soon as possible in the shortest time to join the mainstream of the world communication standard in, but the huge investment 4G network construction will become a burden for enterprise development, and its total investment is clearly more than 4G China Mobile and China Unicom.

According to the Ministry statistics, from January to June this year, the national new 1.386 million kilometers of optical cable, optical cable line total length of 18.838 million kilometers, an increase of 18.1%, 4G network to promote the rapid development of optical fiber and cable industry.

With the rapid evolution of optical communication technology and business of shrinking profit margins, equipment manufacturers in recent years began to re-set foot in the optical components business, optical fiber and cable manufacturers have upstream and downstream development, increasing industrial chain competition. In tense situations, new market opportunities have been born.

Downstream Game: 100G optical modules

This year, led by the three major telecom operators in China, the world ushered in the 100G construction boom. Last year, China Telecom and China Mobile has conducted a "history of the largest Central Purchasing 100G board" total more than 12,000, this year has entered a peak period of deployment. Elsewhere in the world, 100G optical communication systems have been or before or after, large or small, began commercial deployment.

"Troops and horses, forage ahead." Horses is the operator's network, forage is a variety of optical equipment, fiber optic cable and optical devices downstream, as well as the bottom of the optical chip. There is no doubt that the core of the system equipment is the staple food, but in the fierce competition in the market, equipment manufacturers for supply guarantees and profit-seeking purpose, tentacles deep into the optical device level. Between equipment manufacturers and component vendors, forming a delicate competing relationship.

Wei Leping has said, according to China Telecom Computing, a typical 80 × 100G WDM system, optical domain costs about 75%, while the cost in the optical domain, optical devices accounted for 90%, equivalent to the total accounting for about 70%; a 100G core routers, optical device costs about 60%. In early 2012, Cisco spent $ 271 million acquisition of the silicon photonics company Lightwire, and soon developed a 100GCPAK optical modules. Cisco's acquisition of logic, one CAPK earlier than CFP2 optical module business, Cisco Systems equipment to ensure competitiveness; the second is through the optical module confession, improve profit system.

In China, Huawei spare no effort to develop high-end optical module technology, according to a senior industry analysts, Huawei total investment of high-end optical module over 300 million US dollars, including the 100G optical chip, TO, TOSA / ROSA, and all other devices. Many industry insiders said that Huawei's 100G client Hass has completely mastered side optical module technology, and to achieve product section confession. ZTE's high-end optical module concrete progress is less clear, but its high-speed optical module product line out of some employees founded the company, and soon developed a 100G optical modules, visible ZTE's strength in this area.

Equipment manufacturers vigorously to expand the high-end optical components, optical devices for Finisar and other vendors, certainly not a good news. OVUM optical communications chief analyst DarylInniss represented on C114, equipment manufacturers will squeeze the device's market space, but in the pressure of market competition imposed by equipment manufacturers, optical devices are also accelerate the development of new technologies, the formation of equipment manufacturers difference advantage. Because Cisco, Huawei and other equipment manufacturers have a greater right to speak, anyway, this will be a very difficult process.

Thus, on the one hand, optical modules for Cisco claims CPAK faster commercial device manufacturers to speed up efforts to develop CFP2 optical modules, and complete the definition CFP4 standard in April of this year, trying to form a competitive advantage for CPAK standards, greater The right to speak. A leader in optical components and also accelerate the development of 400G optical modules even 1T early release future competitive pressures.

 optical fiber communication, optical module business, market competition, operators, 4G, 100G, CFP

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