"Rise in Both Quantity and Pricing"

Updated:2021/10/14 13:40

On October 12, China Mobile announced the much-awaited list of successful bidders for the 2021-2022 centralized procurement of ordinary optic cables. A total of 14 bidders win the bid, including YOFC, SEFC, HTGD, ZTT, FiberHome, etc.

In rough estimate, optic cables are finally priced at over CNY 60/core kilometers, over 50% increase from a year earlier (CNY 40/core kilometers). It projects a marked "V-shaped" rebound to the 2019 standard. So to speak, both quantity and price are surging in China Mobile's centralized procurement of ordinary optic cables this year, seen as a strong boost to the optic fiber industry.

It should be noted that owing to a sharp increase in raw material prices, recent years have been stressful for optic fiber enterprises that are struggling against prevailing loss. For securing sound development in the industry, China Mobile mildly adjusts its bidding rules. With rising prices offsetting more expensive raw materials in the centralized procurement, optic fiber enterprises are expected to profit a little bit. This way, appropriateness of competition and supply for subsequent 5G construction are ensured in line with requirements of central authorities for trending of procurement bidding and appropriate advance communication infrastructure construction.

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