Get the free version of Marbridge Daily delivered to your inbox

Click here to subscribe

China Unicom Begins Fiber Optic Tender

Securities times, 1/26/10

China Unicom's (NYSE: CHU; 0762.HK; 600050.SH) 2010 tender for optical fiber and cable procurement has begun, results of which are expected to be announced around Chinese New Year in mid-February.

In 2009, telecom equipment manufacturers were unable to keep up with the demand for optical fiber and cables generated by the release of 3G licenses, causing market prices for cable to jump as high as RMB 100 per core kilometer, bringing in high profits for cable manufacturers. In 2009, optical fiber manufacturer Hengtong Optic-Electric (600487.SH) saw an estimated profit increase of 50-70% year-on-year, while Jiangsu Zhongtian Technology (600522.SH) expects year-on-year profit growth of 110-130%. At present, as supply has caught up with demand, current market prices for optical fiber have dropped to RMB 85-90 per core kilometer.

Keywords: Hengtong 600487.SH 600522.SH China Unicom procurement profit telecom 3G Zhongtian Technology 0762.HK 600050.SH CHU fiber optics

Feedback

Please note, all fields are required.
None of your personal information will be shared with third parties.

SendingSending

Disclaimer

The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

Marbridge Daily Premium

Interested in gaining full access to all newsletter articles and the Marbridge Daily archive? To learn more about premium subscription options, including pricing, please:

Click here

Marbridge Consulting RSS Feed

Marbridge Reports