China Investing Heavily in Optical Networking Gear
In 2007, China's spending on optical network hardware was more than double Japan's, and dwarfed the optical spending of India, the Republic of Korea, and all other countries in Asia Pacific, according to a new report from market analyst firm Infonetics Research.
The report says China represents 43% of the $3.4 billion spent on optical hardware in 2007 by Asia Pacific countries.
"China has over 1.3 billion people, yet only about 500 million mobile subscribers and 51 million broadband subscribers, so they have lots of room for mobile, broadband, and teledensity growth. The Chinese government considers telecom infrastructure an important part of their ability to compete, setting a goal of 75 million broadband users by 2008 to help present the 'new China' to the rest of the world for the Beijing Olympics. Reports from China indicate a telecom restructuring may take place soon, quite possibly in 2008, which would slow capital spending for a year or so during the restructurings, mergers, and acquisitions, then spending will resume," said Michael Howard, principal analyst at Infonetics Research.
Other highlights from the report:
- Asia Pacific represents close to 1/3 of worldwide total telecom capex, and about 1/4 of worldwide optical equipment spending
- After China, Japan has the 2nd largest single-country optical spending in Asia Pacific, followed by India and Korea, fairly close to each other in 3rd and 4th
- The rest of Asia Pacific has 5 countries with large capex and optical expenditures: Australia, Singapore, Indonesia, Malaysia, and Taiwan
- Asia Pacific countries are expected to significantly increase their spending on metro and long haul WDM equipment over the next 4 years
- In 2007, 75% of optical hardware purchased by Asia Pacific countries was metro equipment and 25% was long haul equipment
- Huawei has been the optical network hardware market leader in Asia Pacific since at least 2003, growing their share steadily over the years; Alcatel-Lucent is the #2 player in Asia Pacific, followed by ZTE and NEC
Posted to the site on 9th April 2008
