Strong Demand Growth in the Optical Communication Industry

The optical communication industry is currently experiencing strong demand growth both domestically and internationally, mainly reflected in several aspects:

First, against the backdrop of global broadband adoption, worldwide investment in optical transmission is increasing;

Second, domestic operators will accelerate investment in transmission networks;

Third, benefiting from the construction of Fiber-to-the-Home (FTTH);

Fourth, the promotion of the industry by the Triple Play convergence.

During the 12th Five-Year Plan period, the total investment in China's 3G and 4G networks may reach 1 trillion yuan. Broadband adoption will become the main theme of construction in the communications field. In the second half of the year, industry investment grew 13.4% year-on-year, which will bring performance improvements to the communications industry.