China Mobile officially launched its 2021 centralized procurement of common optical cables on September 8, 2021, with an estimated procurement scale of 4,470,500 km of cable (143.2 million KMF), representing a 20% increase from 2020 and a 36% increase from 2019 . The upper limit of the bid price was set at 9.86 billion yuan, 20% higher than the 2020 limit, reflecting stabilized prices after previous declines . By October 12, 2021, China Mobile announced the successful bidders, which included YOFC, SEFC, HTGD, ZTT, and FiberHome, among others, totaling 14 companies . The procurement prices for ordinary optic cables rose to over CNY 60 per core kilometer, a 50% increase from the previous year, signaling a "V-shaped" rebound to pre-2019 levels . This increase was partly due to rising raw material costs, which the adjusted bidding rules helped offset, ensuring profitability for fiber enterprises and supporting 5G infrastructure development .
In addition to China Mobile, other large-scale procurement projects occurred in 2021. For example, YOFC won bids for the State Grid Corporation of China's power transmission and transformation projects, including OPGW optical cables used in high-voltage transmission systems, which combine communication and ground wire functions . These projects supported the expansion of integrated broadband and digital power communication networks.
The global fiber optic cable market was recovering from the COVID-19 impact in 2020, with expected growth at a CAGR of 7% through 2024 . In China, the cumulative optical fiber cable output in the first half of 2021 reached 144.6 million core kilometers, a 5.9% year-on-year increase . Centralized procurement by major operators like China Mobile played a key role in stabilizing supply, supporting infrastructure projects, and boosting industry confidence.
The 2021 centralized procurement initiatives:
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