Fiber-optic cable market overview

According to KMI, the amount of fiber-optic cable installed worldwide jumped 15% in 2005, and should grow at a CAGR of 10% through 2010. NA reported a 36% increase in installations in 2005, followed by Western Europe with 22%. In the next three years, the amount of fiber installed should be higher than the peak level reached during the telecom market bubble in 2001. The US and China would account for almost 50% of demand from 2006 through 2010. ATT, China Mobile and Verizon accounted for 55% of the increase in worldwide demand in 2004-2005, and will account for 20%+ of the growth in 2006. Facing growing demand, fiber and cable producers were turning up unused capacity in 2005 and 1Q06. If the trend continues, they will have to bring new capacity on line at the end of the period (08-10). As a consequence, fiber and cable price decreases should stop.