Wiring up the mainland

Imogene Wong

Monday, February 16, 2015

This continuing government thrust not only benefits the nation's three largest state-owned telecoms operators, which dominate both the wireless and fixed-line broadband service markets, but other private enterprises as well, specifically fiber optic makers.

For instance, China Fiber Optic Network System Group (3777) is set to operate its first fiber-to-home broadband business in a few months instead of just being a pure fiber optic products vendor, thanks to the government's plan to introduce more private players into the market.

"We are transforming from a fiber optic products maker into a professional internet operator," says executive director and chief financial officer Randy Hung King-kuen.

The Hebei-based company has identified vast opportunities in fiber-to- home segment.

"It is compulsory under the law since April last year for new homes to be equipped with fiber-to-the-home or FTTH network service, apart from utilities such as water, electricity and coal."

China Fiber Optic Network, now the mainland's biggest fiber optic patch cords maker with a market share of about 20 percent, ventured into the network operating business by partnering with China Telecom (0728), the world's largest fixed broadband operator.

China Fiber Optic is responsible for installing fiber optic network in return f

In the past, China Fiber Optic was confined to producing and selling fiber optic products, mainly tailor-made for telecom operators or broadcasting companies.

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Wiring up the mainland