Problems facing the cable industry is

    Although the optical fiber and cable industry is facing the situation was not bad, but the development trend, not without worries. High demand for the market this year to stimulate expansion of fiber optic cable manufacturers, new capacity in 2009 is expected to reach 10 million core km. Low barriers to entry, production can continue to rapidly expand, optical fiber and cable industry is difficult to avoid a new round of excess capacity, and with the large increase in production capacity, product prices next year will face the risk. To this end, optical fiber and cable industry should focus on the following areas:

    First, strengthen independent innovation capability. In the optical fiber research and development, production, and core technology, key chain, etc., increase investment, efforts to improve the level of product technology and production processes, and strive to key areas of optical fiber and cable production breakthrough to form a group with independent intellectual property rights. Especially in the preform part, despite the current technological breakthrough has been made, but still need to speed up the production process.

    Second, increased industry consolidation efforts to establish a brand, bigger and stronger. At present, optical fiber and cable industry big but not strong contradiction, product differentiation is not obvious. Leading companies should enhance product quality and safety awareness, complete with their own strength and build the industrial chain, eliminate backward production capacity and production technology, using market means to start industry consolidation and market restructuring, the industry has laid a solid foundation for sustainable and healthy development.

    Third, government departments should strive to create a fair competitive market environment. Government departments should earnestly concerned about China's enterprises in the domestic market in the core interests, including market access, play a role in anti-dumping, to ensure that our companies can compete in the market to get a fair deal. In addition, for some parts of the excess capacity, the momentum of disorderly competition, urgent need to strengthen guidance at the national level, overall planning and layout of optical fiber and cable industry.

    Since last year, the market continued to take a good fiber optic cable, optical fiber and cable business of substantial growth in revenues and benefits, is this year, the amount of optical fiber and cable market prices go up the results. 3G telecom operators to benefit from investment, FTTH to promote the national grid, rural power grids and the promotion of new energy projects, optical fiber and cable market is in short supply situation, fiber prices from 2008 km of 72 yuan per core up to 2009 core is about 86 yuan per kilometer. Moreover, there are forecasts that the next three years, domestic demand for optical fiber and cable will remain more than 20% growth rate.