There is no looking back for the optical fibre cable (OFC) industry in the country in the near future. Though this product has now been commoditised, the demand will continue to register double digit growth.
Share of OFC in the total telecom cable market is expected to increase from 22 per cent to around 55 per cent during 2002-03 to 2006-07. This is primarily due to an expected growth in the long distance network by Bharat Sanchar Nigam Ltd. (BSNL) and private national long distance (NLD) telecom service operators.
It is expected that there will be increase in OFC penetration in the intra-city networks of BSNL and Mahanagar Telephone Nigam Ltd. (MTNL), and an increase in the installation of OFC by providers of broadband access networks.
Also it is expected that increase in the average fibre count of OFC would be, from 22 in 2002-03 to 52 by 2006-07. In 2002-03, demand for OFC is expected to increase by over 10 per cent, to around 2.5 million fibre kilometres (fkm) from 2001-02 figures.
The sector is poised for growth with several operators showing intention of setting up broadband networks. Several networks are being implemented and some will be taken up in near future, presenting ample scope for growth. Private players would become more important, but as customers they would be more quality and product conscious. Competition may drive demand premium products.
The increased need for bandwidth would fuel tremendous growth for the optical fibrecable manufacturers.
The telecom cable industry has grown at CAGR 18.1 percent during 1997-98 to 2001-02. Jelly-filled telecom cables (JFTC) accounts for 78 per cent and OFC accounts for 22 per cent of the market at present. Demand in OFC (in FKM terms) increased at CAGR of 68 per cent during 1997-98 to 2001-02 period.
Capacity of OFC increased at CAGR of 38.1 per cent and offtake increased at CAGR of 67.5 per cent between 1997-98 and 2001-02. Demand growth may slow only on account of high level of stocks with BSNL.
Of the 28 OFC producers, eight companies did not bid for BSNL
