PLC splitter Market Analysis

Optical splitter is the core of the FTTH optical devices, and it bears great potential for growth, will become the main driver of growth of FTTX market, will undoubtedly optical communications manufacturing industry has brought vigor and challenges, but also to optical communications companiesbring again the rapid development of space.

At present, the construction of our FTTx (fiber access network) gradually carried out, the three operators and broadcasting system are determined to speed up the light into the copper, and promote the strategic transformation of the access network ideas to achieve FTTC (fiber to the curb) and FTTB (fiber to the building), FTTH (fiber to the home) FTTD (fiber to the desktop), triple play (voice, data networks, cable television) and other multimedia transmission and PDS (integrated wiring system) program. All-fiber network to be completed, in addition to a variety of structured wiring fiber optic cable, the introduction of fiber optic cable to fiber-optic network connecting and redistribution in the E-PON, G-PON technology, a large number of optical splitter is required to finalize the the purpose of FTTH.

FTTx system consists of three parts of the central office equipment (OLT), the user terminal equipment (ONU), Optical Distribution Network (ODN). ODN as an important part of FTTx systems, optical transmission physical channel between the OLT and ONU, usually by the optical fiber cable, optical connector, optical splitter, and the equipment installation and connection of these devices. ODF frame from the central office’s fiber distribution point of the feeder segment as a backbone fiber optic cable to achieve long reach; fiber distribution point to the wiring section of the user access point, user area along the feeder cable to the nearest distribution of fiber; user access point-to-end home segment butterfly drop cable, and all branches and contacts are connected by optical splitter to complete and achieve fiber to the home.

Optical splitter is the core of the FTTH optical devices, and it bears great potential for growth, will become the main driver of growth of FTTX market, will undoubtedly optical communications manufacturing industry has brought vigor and challenges, but also to optical communications companies bring again the rapid development of space. The arrival of the access network building boom, from the market at the present stage and future needs of development trend, the PLC optical splitter will become the main PON market is beyond reproach, he has the characteristics of digital, network, broadband, small and easy maintenance is the focus of future market demand.

PLC (optical splitter) market and industry conditions

PLC (optical splitter) is mainly used in the access network, passive optical network (PON), the central office with multiple users connected to the realization of FTTH. Global demand in 2008 was about 24 million channels, the total sales of $ 110,000,000, an average of $ 4.6? Channel. Global market to vary in different regions, Japan, South Korea for several years of rapid development, the number has stabilized, but still occupies half of the market share in North America accounts for 30% of the market share. China, India, Brazil and other developing countries, FTTH is the beginning of construction, will become the main growing point of the market.

In 2009, strong demand for optical components market, especially from the second quarter, the sales revenue for three consecutive quarters of growth. Products, 10G optical modules and PLC products the performance of a prominent, strong growth. 2010, in the second quarter, the passive components manufacturers orders in good condition, the market demand of about 600 million yuan, an increase of 16%. Operators to speed up FTTX deployments driven by domestic PLC device market has continued the strong growth in 2009, PLC splitter, AWG, product demand. Currently, fiber optic connectors, couplers, isolators, attenuators and other passive components market demand to maintain steady growth, but because of market competition intensified, prices continue to decline.

In operators, the three operators have clear requirements of FTTX networks all PLC optical splitter. From 2009 to 2010 China Telecom, China Unicom has two consecutive years of PLC splitter Jicai tender, 2010, China Mobile has begun to GPON use of all equipment, including PLC splitter set mining.

If we say that the 2009 annual optical device market growth of 3G factors, the 2010 growth factors FTTX factors. Although China is a large scale deployment of FTTX networks are still many obstacles, but the government decided to promote the triple play will FTTX delivering the power of the optical components market will also benefit. In the first half of 2010, the operators are active under the impetus of the FTTH construction as well as the 3G network construction, and January 13, 2010, Premier * chaired a State Council executive meeting, decided to speed up the elecommunications network, radio and television networks and Internet triple play this indicates that the government will begin to promote the deployment of FTTX network, the optical components market will benefit. ICCSZ forecast that in 2010 the optical components market will maintain steady growth of domestic market sales of passive components to maintain a rapid growth in the second quarter, domestic sales of passive components is about 700 million yuan, an increase of 17.8%. In the second quarter, the state has issued views on promoting the construction
of fiber-optic broadband network, accelerating the construction of fiber-optic broadband network; the current triple play pilot program has passed. These factors promote the further growth of the optical components market demand brought a lot of orders but also for the passive components manufacturers. At present, domestic FTTx network deployment to speed up the process PLC products as a core device of FTTX, will also receive a large number of applications, the optical components market demand will reach 3.6 billion yuan, an increase of 7.5%. Expected that the optical components market in China will continue to maintain growth in the second half of 2010.

PLC (optical splitter) Industry situation

At present, China is already the PLC device manufacturing power, global products are mostly manufactured in China and South Korea. Domestic produce optical splitter enterprises have one hundred or so (including foreign-funded enterprises), with production and R & D capacity of about 20 (from the China Telecom 2010 PLC Central Purchasing information, there were nearly one hundred companies participated in the Central Purchasing Tender ), which FiberHome Wuhan Accelink, Borch technology, rich photoelectric O’Connell optical communication devices, Wuxi love Wal-rich, Fuchunjiang photoelectric Japanese naval communications Shenzhen, Chengdu Fei Yang Technology, Shanghai Cheng, Datang communications (Kunshan), Nanjing Putian, PUSEN and other enterprises on a large scale production, in addition to chips purchased, others by own production. In addition, most of the enterprises, regardless of product variety and scale of production has not yet formed a major climate and part of the business is essentially the main body of the splitter to buy, and then added a jumper chieftain and case assembly mode.

All countries vigorously promote the engineering of FTTH, FTTx, domestic market demand for PLC splitter was with the depth of the construction of FTTx (fiber access network), the PLC optical splitter is the next step the passive components market the focus of the demand. In addition to the professional factory of optical devices to increase the intensity of development and increase productivity, the well-known large optical fiber and cable manufacturers in this regard to increase investment, active development of passive components products, while also adding production equipment, and as its technology and product reserves, prepared, planned market share, showing the importance of PLC optical splitter in the next few years on the market and all major optical components businesses, the emphasis of this project of optical fiber and cable companies. But not yet mastered chip technology, can only be purchased chip package or do OEM.

Market price movements in the PLC (optical splitter)

The future, China will account for the PLC splitter dominant market position, expected after three years account for 35% of the market. The core technology of the PLC-Splitter chip control in the hands of European, American and Japanese and Korean companies, domestic enterprises, the absence of core technology, the only developed the Fiber Array buy chips do package or directly to the chip company to do the OEM. Anything has two sides, increased demand is always accompanied by a decline in product prices, due to the influx of a large number of device packaging companies in this market, coupled with the three major operators of PLC optical splitter Central Purchasing, the market price will face a downward trend, with the increasing demand, prices will be getting lower and lower, the foundry business and by the packaging company’s profits will become increasingly thin. Figure 1 shows the price movements in the international PLC.