Or you can repharase the title question as what is the cost of an optical fiber? Fiber optic industry is witnessing a sharp fall in prices of optical fibers. What is the reason for this price drop?
chen@chen
What exactly you want to knw? Are you looking to know the production cost of the fiber or buying price?
A caution to buyers who use low price fiber: Remember, you are building communication networks that sustain for the future at least 30 years. Don't cheat your future generations.
Thomas Mathew@tm
These are killing prices. Optical fiber prices have been falling for the past 3 years. Fiber price was stable at 7 to 8 USD per kilometer for quite a long time. The decline in prices started when the Chinese domestic demand for optical fiber cables declined. China mobile and China Telecom projects were at their peak during the 2018-2019 period. Many investors put their money in setting up fiber drawing factories worldwide and also in China, thinking that the demand will continue. China alone were consuming around 350 million fiber kilometers.
The speculation was wrong and the demand could not prolong. Chinese projects were reduced and now all the Chinese fiber manufacturers are dumping their fiber outside China at throw away prices. Not a surprise, if we hear the optical fiber price at 1.5 USD per kilometer. As Chen mentioned in the above comment, throw away prices have its own implication by compromising on the quality. The procurement team with the telcos and other network builders are mostly commercial and they don't care the characteristics of the fiber or reliability of the supplier. Low quality will show its performance in the field, but the time will be late for the network owners to realise their mistakes.
James@james
US$2.4 is the lowest I have seen in Indian market. These are Chinese fibers, but Indian fiber makers are forced to compete with these lower dumping prices from China. Don't know to what level, the fiber prices are falling. I strongly believe, a stable price of US$6.0 per kilometer will ensure reasonably good quality cable and healthy competition. By lowering the prices, many companies will go bankrupt. Let us see which companies can survive this unhealthy competition.
Muhammad Zubair@sohailakhtar
What is the price of optical fibre? Hope this is what you want to know. Cost and price different terms and both may have different values. Cost is the sum of the expenses incurred for making a product or service, while price is the amount the company is selling the product or service in the market. Therefore the price is demand-dependent and may change from market to market. Price is usually what the customer is willing to pay for a product or service.
Coming to the point. Optical fiber prices are super low at this moment. I don't think, this is the real price of optical fibers. Chinese companies are just dumping the fibers to customers outside their country. They are desperate to sell out the excess quantity of fiber to whoever looking for cheap fibers. I really mean it, cheap in price and quality. Customers who do not have any commitment to their network would be the ones attracted to such low quality cheap fibers. I am a buyer but never entertain these companies selling cheap fibers. quality comes with a cost, a certain cost of course. 4.5 to 5 dollars per kilometer is a reasonable price, but when the demand goes high, the price may also go high. I don't trust someone selling optical fibers at US$2.0 per kilometer, whatever logic they bring to the discussion table.
Khalid Mohammed@yuso
Thanks for the inputs. I understand that the prices of optical fibers are at the lowest. I also understand that these prices are for the ITU-T G.652D fibers. Multimode fibers could be costlier than Single mode fibers. Also, G.657A1 and G.655 fibers may also have higher prices than G.652D fibers.
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