Page 30 - Analysis Report of Global Market in the Submarine Cable Field (2017)
P. 30
Wire and Cable
Although the domestic submarine optical cable started late, after Figure 14 Global newly constructional submarine optical
many years’ technology accumulation of domestic enterprises, cable market share (Statistics of 2015-2018)
current submarine optical system competition capacity has developed
dramatically. Chinese enterprises not only expanded the investment in
research and development, but also utilized their relevant advantages
in other fields to cooperate with abroad famous companies, forming
the advantage complement thus to be possible to take more important
position in international submarine optical cable market. After recent
years of technology accumulation, HUAWEI Marine has formed a set
of complete industrial chain integrating communication transmission
product research and development, marine construction, later period
maintenance, and system upgrades and expansion into one body, who
also possesses the qualification and capability of marching to long
distance deep marine market. In aspect of providing turnkey solution,
Huawei Marine has the capability of competing with first class
enterprises of European and American countries, as well as Japan. By the end of 2015, the French Alcatel Lucent built up submarine
cable length of 575 thousand kilometers globally, which is the leading
In addition, Chinese enterprises have largely promoted research submarine cable system providing enterprise in the world. American TE
and development of submarine optical cable, whose technology and Subcom’s laying length reached 490 thousand kilometers, while Japan
strength have reached world class level. Technology is no longer ese NEC’s laying length was up to 220 thousand kilometers. In recent
the insurmountable barrier. However, being limited to the lower years, affected by global competition and rapid capacity improvement
international recognition degree and case experience, Chinese companies of HUAWEI, Alcatel Lucent has always been in loss statement. At
do not have too much speed rights. With the roles played by HUAWEI the same time as the construction of global submarine cable was in
Marine and relevant companies on international submarine cable stage the trough in previous years, the submarine cable business is
being recognized more and more, China’s submarine cable and relevant also marginalized within the group gradually. It even planned to separate
companies are expected to usher in the best time of development. its submarine business as a private company for sale, list it on stock
Table 7 The international submarine cable construction statistics of separately in the end of 2015.
HUAWEI Marine , 2014-2018
In 2015, NOKIA announced the acquisition of the French
Alcatel Lucent, including its submarine cable business. The prospect
of French Alcatel Lucent’s submarine cable business still remains
uncertain currently, whose original market share for submarine cable
have already been taken by other giant enterprises. It means also the
market is about to usher in some new opportunities.
Figure 15 Mileage Statistics of Huawei Marine’s contracted
construction of submarine fiber optic cable
5. Competition pattern changed, Chinese enterprises ushered in
development opportunities
International pattern of competition started changing, HUAWEI Marine
rises rapidly.
Submarine cable technology is rather complex. Global submarine cable
supplier are mainly AmericanTE Subcom, Alcatel Lucent
and Jananese NEC. They are the only three enterprises who can
deal with the submarine cable below the deep sea depth of 3000
meters in the world. Before 2014, more than 90% of the global market
were monopolized by these three companies, even NEC, who has the HUAWEI Marine has rapidly risen from the market with its own
lowest market share accounted for about 12%. experience in the field of communications technology, phase modulation,
Figure 13 Market share of global newly constructional submarine high-capacity OTN technology, as well as the marine construction and
optical fiber cables (Statistics of 2004-2014) maintenance experience of its global maritime companies. At the same
time, it has strong advantage in terms of equipment prices. For example,
the high-power laser equipment required by a group of the Atlantic
submarine cables only cost one third of competitors. It’s goal is to be
listed in the industry's top three.
In 2014, the Hibernia submarine cable project of 4600km was taken
by TE Subcom company because the U.S. government had concern on
Huawei’s network security, which made HUAWEI lose the chance of
earlier opening ocean cable market. In 2015, HUAWEI announced the
contracted construction of the Brazil - Cameroon turnkey marine project,
and finally had the opportunity of showing itself in the international
long distance cable market. We believe that by this project experience,
30