Fiber-optic broadband into a new growth point of domestic demand 370 billion yuan cake to be divided

100 trillion speed, do you believe it? This is the result of the Ministry of Industry and Information Technology's attempt to invest 370 billion yuan in investment in the optical fiber broadband industry. In developed countries, after expanding the speed of residents’ homes to 100 megabits, the development of the optical fiber broadband industry has become China's development of the information industry in order to respond to the demand for Internet speeds in next-generation information technologies such as the Internet of Things, Internet of Things, cloud computing, and mobile Internet. To stimulate the new growth point of the national domestic demand.

Broadband China's basic landing policy bonus will be gradually distributed from 2013

Based on the strong investment momentum of operators and the country's “broadband China” policy support, brokers generally favor the optical communications industry as a whole. From the market point of view, the revenue growth rate of optical communications in the first quarter is also very high, which is the performance of all TMT industries. Ok

In early May, "Broadband China" was finally proposed and discussed at the State Council executive meeting. This is also the first time that “Broadband China” has been mentioned in such a real sense. According to an industry insider who is close to the Ministry of Industry and Information Technology, this meeting can be said to have cleared away from the government level the basics of current broadband construction. Obstacles, the big direction is basically clear, and the rest is the development of details. Ma Jun, Chief Analyst of Fortune China Securities TMT, expressed this view to reporters. He expected that it will take 3-5 months to successfully launch a complete "Broadband China" strategic plan.

"Broadband China" basically landed

2013 is expected to reap the policy dividend

In March 2012, the National Development and Reform Commission and the Ministry of Industry and Information Technology issued a notice on the launch of the “Broadband China Strategy” study. They stated that the eight ministries and commissions have already established the "Broadband China Strategy" research working group and the expert group to study and formulate the "Broadband China Strategy" implementation plan. , including the overall thinking, development goals, major tasks, road maps, timetables, and policy measures, etc., will be reported to the State Council in June after the release of the implementation.

Ma Jun, Chief Analyst of China Fortunec TMT, believes that it will take 3-5 months to successfully launch a complete "Broadband China" strategic plan. Then related companies and government departments need to continue to invest and build the next step will still need 1-2 months. Ma Jun expects that the optical communication industry in 2013 will be the harvest year of policy dividends.

According to the latest research report of China Chuangxin Securities, the total investment in cable broadband during the “Twelfth Five-Year Plan” will reach 330 billion yuan, of which FTTH investment will account for 65% of the total. According to forecasts, combined with the actual investment in each project, the “12th Five-Year Plan” During the period, the total investment in optical access network was 215.4 billion yuan. According to past experience, the ratio of investment in backbone/municipal and access networks is 1:4 or lower. The backbone/metropolitan area network mainly includes the construction of trunk fiber optic cable, wavelength division equipment and PTN, and the scale of investment is average. In the fiber access network part, there are numerous investment areas and considerable scale.

At present, China has formed a relatively complete system of optical fiber communications industry, covering optical fiber, optical transmission equipment, light source and detector parts, optoelectronic devices and other fields, more than 80% of the optical communications products required by the domestic market have achieved local production.

Ma Jun pointed out that the development of wired broadband directly benefits the entire optical communications industry chain.

Operator broadband investment increase

Drive the growth of revenue for optical communications companies

Miao Miao, minister of the Ministry of Industry and Information Technology, previously disclosed the goal of the broadband speed-increasing project in 2012: Increased broadband access capacity, and added FTTH (fiber-to-the-home) coverage to more than 35 million households; overall, it will increase the access rate of fixed broadband users in China and use 4M and above users of broadband access products exceed 50%; improve the penetration rate of fixed broadband households, increase fixed broadband access to more than 20 million households in the Internet; expand the scale of wireless local area networks in public hot spots; further promote and popularize broadband applications, and Promote the reduction of unit price of bandwidth.

Ma Jun believes that with the rapid increase in broadband traffic, operators are required to expand their capacity and increase their speed. As a result, operators will invest more in broadband. In fact, from 2011, domestic operators have already accelerated their broadband deployment.

According to the latest research report of Huachuang Securities, telecommunications actually completed investment of 49.6 billion yuan in 2011, 66.8% for broadband investment, and plans to invest 54 billion yuan in 2012, an increase of 9%, of which 70% for broadband network upgrades The proportion of cities planning to achieve 20M bandwidth by the end of 2012 will reach 70%.

In terms of China Unicom, at the end of 2011, China Unicom launched a tender for PON network equipment. This is China Unicom's annual largest fixed-fiber optical equipment PON collection, with a total value of RMB 4 billion. After entering the year 2012, China Unicom launched the broadband speed increase strategy of “Optical World and Wo Widen”. It plans to popularize 10 to 20 MB of broadband in cities within three years, and rural broadband access will be greatly improved. In 2012, China Unicom’s capital expenditure was 100 billion, of which broadband data and infrastructure transmission network accounted for half of the country’s total.

Compared with China Unicom, China Mobile has a clear disadvantage in the development of broadband networks, but it also regards broadband engineering as the focus of its development. In mid-2011, China Mobile launched a fiber optic cable tender and collected 8 million lines. The scale of bidding increased by 20% compared to 2010. It is estimated that in 2012 China Mobile's investment in transmission network investment structure will increase from 18% in 2011 to 26% in 2012.

Ma Jun told reporters that it can be said that the marketization of the three major operators has boosted the revenue growth of communications companies this year. At the same time, from the market point of view, the revenue growth rate of optical communications in the first quarter was also very high, which is a good performance in all TMT industries.

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