China Optical Communication Industry Report, 2010-2011
The optical communication network construction in China has transferred to the extensive upgrading of access network since 2010, and the centralized procurement quantity of FTTx by three telecom operators has approximated 20 million lines. In 2011, the FTTx centralized procurement quantity of China Telecom is expected to total 19 million lines, followed by China Unicom. According to the planning of the State Administration of Radio Film and Television (SARFT), the CATV operators will initiate network reform in 2011 and will purchase great numbers of PON devices.
Chinese optical communication equipment industry has maintained the growth rate of over 30% in recent years. Regarding the construction of optical fiber access network, access system device occupies more than 50% of the gross investment. At present, China Telecom and China Unicom give priority to EPON, while China Mobile, the newcomer in broadband market, prefers GPON. Chinese local suppliers of PON devices mainly cover Huawei, ZTE, and FiberHome.
The cost of optoelectronic devices, the core components of optical network, accounts for 25%-30% of that of optical communication equipment. Hereinto, optical splitters are in short supply in Chinese market. The major optoelectronic device manufacturers in China consist of Accelink Technologies Co., Ltd. (Accelink), Wuhan Huagong Genuine Optics Tech Co., Ltd. (HG Genuine), and Wuhan Telecommunication Devices Co., Ltd. (WTD). Nevertheless, they lack core technologies and ingenious brands, and the core optical fiber components rely on import.
In 2010, the capacity utilization of optical fiber & cable in China was around 90%, and the price of centralized purchasing presented a downward trend, a fall of 12% YoY. Yet influenced by Great East Japan Earthquake, the upstream optical fiber pre-forms has encountered tense supply, and the falling price of optical fiber & cable has slowed down, so the price of optical fiber & cable in 2011 will be equivalent to that in 2010. Optical fiber pre-form contributes 70% to the profit of the entire optical fiber & cable industry chain. Hengtong Optic-electric, Jiangsu Zhongtian Technology Co., Ltd. (ZTT), FiberHome, Futong Group, and Yangtze Optical Fibre and Cable Company Ltd. (YOFC) have already practiced pre-form projects. The optical fiber pre-form output of Chinese local manufacturers approached 1,000 tons in 2010.
Major Local Manufacturers in Chinese Optical Communication Field
In the field of optical communication equipment, the leading ZTE boasts roughly 45% share of the FTTx market. Huawei launched the dual-mode ONT that favors EPON and GPON in 2010, which solved the problem concerning technological compatibility between EPON and GPON. Under the fierce competition, the gross margin of FiberHome optical communication device business dropped nearly 5 percentage points.
In respect of optoelectronic devices, the dominant Accelink will achieve the localization of ROADM modules and the commercialization of AWG chips in 2011. HG Genuine expanded the workshop by 1000 m2 in 2010 and raised the monthly capacity from 300K modules to the maximum 500K. WTD has been in possession of more than 1/3 share in global low & medium-end AOD (active optical device) market, and its sales witnessed a 40% YoY rise in 2010.
As for optical fiber & cable industry, the optical fiber pre-form joint project of Hengtong Optic-electric and the U.S. based OFS has been put into operation, with the output of over 100 tons in 2010 and the annual capacity of 200 tons. The optical fiber pre-form capacity of ZTT was close to 50 tons in 2010. FiberHome and Fujikura set up the joint venture in 2009, and it will satisfy 20% domestic demand after the complete production of optical fiber pre-form project. Futong Group and Sumitomo established the joint venture for the production of large-sized optical fiber pre-forms. As the sole supplier of small, medium, and large-sized pre-forms, the pre-form capacity of YOFC advances year by year and the annual capacity approximated 800 tons in 2010.
Chinese optical communication equipment industry has maintained the growth rate of over 30% in recent years. Regarding the construction of optical fiber access network, access system device occupies more than 50% of the gross investment. At present, China Telecom and China Unicom give priority to EPON, while China Mobile, the newcomer in broadband market, prefers GPON. Chinese local suppliers of PON devices mainly cover Huawei, ZTE, and FiberHome.
The cost of optoelectronic devices, the core components of optical network, accounts for 25%-30% of that of optical communication equipment. Hereinto, optical splitters are in short supply in Chinese market. The major optoelectronic device manufacturers in China consist of Accelink Technologies Co., Ltd. (Accelink), Wuhan Huagong Genuine Optics Tech Co., Ltd. (HG Genuine), and Wuhan Telecommunication Devices Co., Ltd. (WTD). Nevertheless, they lack core technologies and ingenious brands, and the core optical fiber components rely on import.
In 2010, the capacity utilization of optical fiber & cable in China was around 90%, and the price of centralized purchasing presented a downward trend, a fall of 12% YoY. Yet influenced by Great East Japan Earthquake, the upstream optical fiber pre-forms has encountered tense supply, and the falling price of optical fiber & cable has slowed down, so the price of optical fiber & cable in 2011 will be equivalent to that in 2010. Optical fiber pre-form contributes 70% to the profit of the entire optical fiber & cable industry chain. Hengtong Optic-electric, Jiangsu Zhongtian Technology Co., Ltd. (ZTT), FiberHome, Futong Group, and Yangtze Optical Fibre and Cable Company Ltd. (YOFC) have already practiced pre-form projects. The optical fiber pre-form output of Chinese local manufacturers approached 1,000 tons in 2010.
Major Local Manufacturers in Chinese Optical Communication Field
In the field of optical communication equipment, the leading ZTE boasts roughly 45% share of the FTTx market. Huawei launched the dual-mode ONT that favors EPON and GPON in 2010, which solved the problem concerning technological compatibility between EPON and GPON. Under the fierce competition, the gross margin of FiberHome optical communication device business dropped nearly 5 percentage points.
In respect of optoelectronic devices, the dominant Accelink will achieve the localization of ROADM modules and the commercialization of AWG chips in 2011. HG Genuine expanded the workshop by 1000 m2 in 2010 and raised the monthly capacity from 300K modules to the maximum 500K. WTD has been in possession of more than 1/3 share in global low & medium-end AOD (active optical device) market, and its sales witnessed a 40% YoY rise in 2010.
As for optical fiber & cable industry, the optical fiber pre-form joint project of Hengtong Optic-electric and the U.S. based OFS has been put into operation, with the output of over 100 tons in 2010 and the annual capacity of 200 tons. The optical fiber pre-form capacity of ZTT was close to 50 tons in 2010. FiberHome and Fujikura set up the joint venture in 2009, and it will satisfy 20% domestic demand after the complete production of optical fiber pre-form project. Futong Group and Sumitomo established the joint venture for the production of large-sized optical fiber pre-forms. As the sole supplier of small, medium, and large-sized pre-forms, the pre-form capacity of YOFC advances year by year and the annual capacity approximated 800 tons in 2010.
1 OVERVIEW OF OPTICAL COMMUNICATION INDUSTRY
1.1 Concepts
1.2 Technology Development
1.3 Industry Chain
2 DEVELOPMENT OF GLOBAL OPTICAL COMMUNICATION INDUSTRY
2.1 Overview of Global Optical Fiber Equipment Market
2.2 Overview of Global Optical Fiber Components Market
3 OVERVIEW OF CHINA OPTICAL COMMUNICATION INDUSTRY
3.1 Technology Development
3.2 Investment
3.3 Development Trend
3.4 Industry Segments
3.4.1 Optical Communication Device
3.4.2 Optoelectronic Device
3.4.3 Optical Fiber & Cable
3.4.4 Optical Supporting Sectors
4 MANUFACTURERS OF OPTICAL COMMUNICATION DEVICE
4.1 ZTE
4.1.1 Profile
4.1.2 Operation
4.1.3 Strategy
4.2 FiberHome
4.2.1 Profile
4.2.2 Operation
4.2.3 Development Strategy
4.3 Huawei
4.3.1 Profile
4.3.2 Operation
4.3.3 Strategy
5 OPTOELECTRONIC DEVICE MANUFACTURERS
5.1 Accelink Technologies Co., Ltd. (Accelink)
5.1.1 Profile
5.1.2 Operation
5.1.3 Strategy
5.2 O-Net Communications
5.2.1 Profile
5.2.2 Operation
5.2.3 Strategy
5.3 Wuhan Huagong Genuine Optics Tech Co., Ltd. (HG Genuine)
5.3.1 Profile
5.3.2 Operation
5.3.3 Strategy
5.4 Others
5.4.1 Wuhan Telecommunication Devices Co., Ltd. (WTD)
5.4.2 Sunstar Communication Technology Co., Ltd.
5.4.3 Hisense Broadband Multimedia Technology Co., Ltd. (HBMT)
5.4.4 Jiangyin Sinoprime Optical Industry Co., Ltd. (Sino-Opto)
6 OPTICAL FIBER & CABLE ENTERPRISES
6.1 Hengtong Optic-electric
6.1.1 Profile
6.1.2 Operation
6.1.3 Strategy
6.2 Jiangsu Zhongtian Technology Co., Ltd. (ZTT)
6.2.1 Profile
6.2.2 Operation
6.2.3 Strategy
6.3 Jiangsu Tongding Optic-electronic Stock Co., Ltd.
6.3.1 Profile
6.3.2 Operation
6.3.3 Strategy
6.4 Yangtze Optical Fibre and Cable Company Ltd. (YOFC)
6.5 Futong Group
6.5.1 Profile
6.5.2 Operation
6.6 Tianjin Xinmao Science & Technology Co., Ltd
6.7 Jiangsu Etern Company Limited (Etern)
6.8 Fasten Fiberoptics
6.9 Zhongli Sci-Tech Group
7 OPTICAL SUPPORTING ENTERPRISES
7.1 SUNSEA Telecommunications Co., Ltd. (SUNSEA)
7.1.1 Profile
7.1.2 Operation
7.1.3 Strategy
7.2 Suzhou New Sea Union Telecom Technology Co., Ltd. (NSU)
7.3 Nanjing Putian Telecommunications Co., Ltd.
7.3.1 Profile
7.3.2 Operation
7.4 Others
7.4.1 Shenzhen Century Man Communication Co., Ltd. (Century Man)
7.4.2 Ningbo Longxing Telecommunications Equipment Manufacturing Co., Ltd. (Longxing Telecom)
7.4.3 Changzhou Taiping Electric Co., Ltd.
1.1 Concepts
1.2 Technology Development
1.3 Industry Chain
2 DEVELOPMENT OF GLOBAL OPTICAL COMMUNICATION INDUSTRY
2.1 Overview of Global Optical Fiber Equipment Market
2.2 Overview of Global Optical Fiber Components Market
3 OVERVIEW OF CHINA OPTICAL COMMUNICATION INDUSTRY
3.1 Technology Development
3.2 Investment
3.3 Development Trend
3.4 Industry Segments
3.4.1 Optical Communication Device
3.4.2 Optoelectronic Device
3.4.3 Optical Fiber & Cable
3.4.4 Optical Supporting Sectors
4 MANUFACTURERS OF OPTICAL COMMUNICATION DEVICE
4.1 ZTE
4.1.1 Profile
4.1.2 Operation
4.1.3 Strategy
4.2 FiberHome
4.2.1 Profile
4.2.2 Operation
4.2.3 Development Strategy
4.3 Huawei
4.3.1 Profile
4.3.2 Operation
4.3.3 Strategy
5 OPTOELECTRONIC DEVICE MANUFACTURERS
5.1 Accelink Technologies Co., Ltd. (Accelink)
5.1.1 Profile
5.1.2 Operation
5.1.3 Strategy
5.2 O-Net Communications
5.2.1 Profile
5.2.2 Operation
5.2.3 Strategy
5.3 Wuhan Huagong Genuine Optics Tech Co., Ltd. (HG Genuine)
5.3.1 Profile
5.3.2 Operation
5.3.3 Strategy
5.4 Others
5.4.1 Wuhan Telecommunication Devices Co., Ltd. (WTD)
5.4.2 Sunstar Communication Technology Co., Ltd.
5.4.3 Hisense Broadband Multimedia Technology Co., Ltd. (HBMT)
5.4.4 Jiangyin Sinoprime Optical Industry Co., Ltd. (Sino-Opto)
6 OPTICAL FIBER & CABLE ENTERPRISES
6.1 Hengtong Optic-electric
6.1.1 Profile
6.1.2 Operation
6.1.3 Strategy
6.2 Jiangsu Zhongtian Technology Co., Ltd. (ZTT)
6.2.1 Profile
6.2.2 Operation
6.2.3 Strategy
6.3 Jiangsu Tongding Optic-electronic Stock Co., Ltd.
6.3.1 Profile
6.3.2 Operation
6.3.3 Strategy
6.4 Yangtze Optical Fibre and Cable Company Ltd. (YOFC)
6.5 Futong Group
6.5.1 Profile
6.5.2 Operation
6.6 Tianjin Xinmao Science & Technology Co., Ltd
6.7 Jiangsu Etern Company Limited (Etern)
6.8 Fasten Fiberoptics
6.9 Zhongli Sci-Tech Group
7 OPTICAL SUPPORTING ENTERPRISES
7.1 SUNSEA Telecommunications Co., Ltd. (SUNSEA)
7.1.1 Profile
7.1.2 Operation
7.1.3 Strategy
7.2 Suzhou New Sea Union Telecom Technology Co., Ltd. (NSU)
7.3 Nanjing Putian Telecommunications Co., Ltd.
7.3.1 Profile
7.3.2 Operation
7.4 Others
7.4.1 Shenzhen Century Man Communication Co., Ltd. (Century Man)
7.4.2 Ningbo Longxing Telecommunications Equipment Manufacturing Co., Ltd. (Longxing Telecom)
7.4.3 Changzhou Taiping Electric Co., Ltd.
SELECTED CHARTS
Advantages of Optical Fiber Broadband Access Technology
Global Smart Module Market Capacity, 2004 vs. 2010
Optical Communication Industry/Product Structure
Market Share of Passive Optical Device Manufacturers Worldwide, 2009Q2
Shipment of Global FTTB/LAN Port Vendors, 2009Q2
Market Size of Global Optical Fiber Components
Market Share of Global Optical Fiber Component Manufacturers, 2008
China Optical Communication Industry Chain
Broadband User Quantity and Growth Rate in China, 2004-2010
Annual Capital Expenditure of China Telecom, 2010-2011
Annual Capital Expenditure of China Unicom, 2010-2011
Annual Capital Expenditure of China Mobile, 2010-2011
Development of FTTH PON
Centralized Purchasing of PON Devices by Top 3 Operators
Market Share of Major Optical Communication Equipment Manufacturers in China, 2009
Supply & Demand of Optical Fiber & Cable Market in China, 2008-2013E
Profit Distribution of Optical Fiber & Cable Industry Chain
Optical Fiber & Cable Market Share Distribution, 2009
Major Manufacturers of Communication Network Access Device Industry
Operating Income and Growth Rate of ZTE, 2007-2010
Operating Income Structure of ZTE (by Product), 2007-2010
Network Revenue Structure of ZTE Operators (by Product), 2007-2010
Main Business Gross Margin of ZTE (by Product), 2007-2010
Operating Income Structure of ZTE (by Region), 2007-2010
LTE Network Device Manufacturers and Their Market Shares, 2010
Operating Income and Growth Rate of FiberHome, 2007-2010
Operating Income Structure of FiberHome (by Product), 2007-2010
Main Business Gross Margin of FiberHome (by Product), 2007-2010
Operating Income Structure of FiberHome (by Region), 2007-2010
Operating Income and Net Income of Huawei, 2006-2010
Operating Income Structure of Huawei (by Region), 2009-2010
Operating Income and Growth Rate of Accelink, 2007-2010
Operating Income Structure of Accelink (by Product), 2007-2010
Main Business Gross Margin of Accelink (by Product), 2007-2010
Operating Income Structure of Accelink (by Region), 2007-2010
Investment in Projects with Raised Funds of Accelink, 2011
Organizational Structure of O-Net Communications
Global Market Share of Passive Optical Device of O-Net Communications, 2007-2009
Operating Income and Growth Rate of O-Net Communications, 2007-2010
Operating Income Structure of O-Net Communications (by Product), 2007-2010
Main Business Gross Margin of O-Net Communications (by Product), 2007-2010
Operating Income Structure of O-Net Communications (by Region), 2007-2010
Major Product Price and Sales Volume of O-Net Communications, 2007-2009
Operating Income and Growth Rate of Hengtong Optic-electric, 2007-2010
Main Business Gross Margin of Hengtong Optic-electric (by Product), 2007-2010
Operating Income Structure of Hengtong Optic-electric (by Region), 2007-2010
Operating Income and Growth Rate of ZTT, 2007-2010
Operating Income Structure of ZTT (by Product), 2007-2010
Main Business Gross Margin of ZTT (by Product), 2008-2010
Optical Fiber Capacity and Sales Volume of ZTT, 2008-2013E
Operating Income Structure of ZTT (by Region), 2007-2010
Client Distribution of Jiangsu Tongding Optic-electronic Stock Co., Ltd., 2010
Operating Income and Net Income of Jiangsu Tongding Optic-electronic Stock Co., Ltd., 2007-2011
Operating Income Structure of Jiangsu Tongding Optic-electronic Stock Co., Ltd. (by Product), 2007-2010
Operating Income (by Product) and Gross Margin of Jiangsu Tongding Optic-electronic Stock Co., Ltd., 2007-2010
Operating Income Structure of Jiangsu Tongding Optic-electronic Stock Co., Ltd. (by Region), 2007-2010
Operating Income and Net Income of YOFC, 2008-2010
Holding Subsidiaries of Futong Group (Optical Fiber & Cable Business)
Optical Communication Operating Income of Futong Group, 2007-2010
Optical Fiber & Cable Capacity and Output of Futong Group, 2007-2010
Major Clients of Futong Group, 2007-2010
Optical Communication Operating Income and Gross Margin of Tianjin Xinmao Science & Technology Co., Ltd, 2007-2010
Revenue and Gross Margin of Etern Communication Business, 2008-2010
Planned Projects with Raised Funds, 2010
Operating Income and Gross Margin of Fasten Optical Communication Business, 2008-2010
Operating Income and Gross Margin of Optical Cable Business of Zhongli Sci-Tech Group, 2008-2010
Operating Income (by Product) and Gross Margin of SUNSEA, 2009-2010
Operating Income of SUNSEA (by Region), 2008-2010
Operating Income and Gross Margin of NSU Communication Business, 2009-2010
Operating Income and Growth Rate of Nanjing Putian Telecommunications Co., Ltd., 2008-2010
Operating Income of Nanjing Putian Telecommunications Co., Ltd. (by Product), 2008-2010
Operating Income of Nanjing Putian Telecommunications Co., Ltd. (by Region), 2008-2010
Advantages of Optical Fiber Broadband Access Technology
Global Smart Module Market Capacity, 2004 vs. 2010
Optical Communication Industry/Product Structure
Market Share of Passive Optical Device Manufacturers Worldwide, 2009Q2
Shipment of Global FTTB/LAN Port Vendors, 2009Q2
Market Size of Global Optical Fiber Components
Market Share of Global Optical Fiber Component Manufacturers, 2008
China Optical Communication Industry Chain
Broadband User Quantity and Growth Rate in China, 2004-2010
Annual Capital Expenditure of China Telecom, 2010-2011
Annual Capital Expenditure of China Unicom, 2010-2011
Annual Capital Expenditure of China Mobile, 2010-2011
Development of FTTH PON
Centralized Purchasing of PON Devices by Top 3 Operators
Market Share of Major Optical Communication Equipment Manufacturers in China, 2009
Supply & Demand of Optical Fiber & Cable Market in China, 2008-2013E
Profit Distribution of Optical Fiber & Cable Industry Chain
Optical Fiber & Cable Market Share Distribution, 2009
Major Manufacturers of Communication Network Access Device Industry
Operating Income and Growth Rate of ZTE, 2007-2010
Operating Income Structure of ZTE (by Product), 2007-2010
Network Revenue Structure of ZTE Operators (by Product), 2007-2010
Main Business Gross Margin of ZTE (by Product), 2007-2010
Operating Income Structure of ZTE (by Region), 2007-2010
LTE Network Device Manufacturers and Their Market Shares, 2010
Operating Income and Growth Rate of FiberHome, 2007-2010
Operating Income Structure of FiberHome (by Product), 2007-2010
Main Business Gross Margin of FiberHome (by Product), 2007-2010
Operating Income Structure of FiberHome (by Region), 2007-2010
Operating Income and Net Income of Huawei, 2006-2010
Operating Income Structure of Huawei (by Region), 2009-2010
Operating Income and Growth Rate of Accelink, 2007-2010
Operating Income Structure of Accelink (by Product), 2007-2010
Main Business Gross Margin of Accelink (by Product), 2007-2010
Operating Income Structure of Accelink (by Region), 2007-2010
Investment in Projects with Raised Funds of Accelink, 2011
Organizational Structure of O-Net Communications
Global Market Share of Passive Optical Device of O-Net Communications, 2007-2009
Operating Income and Growth Rate of O-Net Communications, 2007-2010
Operating Income Structure of O-Net Communications (by Product), 2007-2010
Main Business Gross Margin of O-Net Communications (by Product), 2007-2010
Operating Income Structure of O-Net Communications (by Region), 2007-2010
Major Product Price and Sales Volume of O-Net Communications, 2007-2009
Operating Income and Growth Rate of Hengtong Optic-electric, 2007-2010
Main Business Gross Margin of Hengtong Optic-electric (by Product), 2007-2010
Operating Income Structure of Hengtong Optic-electric (by Region), 2007-2010
Operating Income and Growth Rate of ZTT, 2007-2010
Operating Income Structure of ZTT (by Product), 2007-2010
Main Business Gross Margin of ZTT (by Product), 2008-2010
Optical Fiber Capacity and Sales Volume of ZTT, 2008-2013E
Operating Income Structure of ZTT (by Region), 2007-2010
Client Distribution of Jiangsu Tongding Optic-electronic Stock Co., Ltd., 2010
Operating Income and Net Income of Jiangsu Tongding Optic-electronic Stock Co., Ltd., 2007-2011
Operating Income Structure of Jiangsu Tongding Optic-electronic Stock Co., Ltd. (by Product), 2007-2010
Operating Income (by Product) and Gross Margin of Jiangsu Tongding Optic-electronic Stock Co., Ltd., 2007-2010
Operating Income Structure of Jiangsu Tongding Optic-electronic Stock Co., Ltd. (by Region), 2007-2010
Operating Income and Net Income of YOFC, 2008-2010
Holding Subsidiaries of Futong Group (Optical Fiber & Cable Business)
Optical Communication Operating Income of Futong Group, 2007-2010
Optical Fiber & Cable Capacity and Output of Futong Group, 2007-2010
Major Clients of Futong Group, 2007-2010
Optical Communication Operating Income and Gross Margin of Tianjin Xinmao Science & Technology Co., Ltd, 2007-2010
Revenue and Gross Margin of Etern Communication Business, 2008-2010
Planned Projects with Raised Funds, 2010
Operating Income and Gross Margin of Fasten Optical Communication Business, 2008-2010
Operating Income and Gross Margin of Optical Cable Business of Zhongli Sci-Tech Group, 2008-2010
Operating Income (by Product) and Gross Margin of SUNSEA, 2009-2010
Operating Income of SUNSEA (by Region), 2008-2010
Operating Income and Gross Margin of NSU Communication Business, 2009-2010
Operating Income and Growth Rate of Nanjing Putian Telecommunications Co., Ltd., 2008-2010
Operating Income of Nanjing Putian Telecommunications Co., Ltd. (by Product), 2008-2010
Operating Income of Nanjing Putian Telecommunications Co., Ltd. (by Region), 2008-2010
