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Rumor: Fiber Price in China Down 30% YoY

People's Posts and Telecommunications News, 12/29/11

According to an optical fiber industry source, in 2011 the average price for optical fiber in China's domestic market was in the range of RMB 60-70/fiber km, which is 5-10% lower than the average price on the international market, and a decrease of nearly 30% from 2010.

An industry source pointed out that the reason for lower prices for optic fiber is because operators have used a group bidding process for tenders in the last few years. Operators will go as far as to include clauses in contracts such as, "next year the price of optic fiber cannot exceed that of this year." In order to make profits, some non-name brand companies can only use recycled materials in order to lower prices, resulting in many sub-standard products flooding the market.

Keywords: telecom pricing fiber optics

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