China – Most potential FTTH marke

Lightwave China held successfully two FTTH conferences in 2005 and 2006. The conferences have produced good influences in the optical communication industry. FTTH market will grow faster in 2007 as illustrated by many aspects of the telecom industry. With this market background and our successful experience of last two events, we believe that the third event will be more successful. The third FTTH conference will co-locate with the ninth CIOE. The vast traffic of CIOE will expand the influences of our FTTH conference.

FTTH markets have taken off in the developed countries
There are over 10mil. FTTH users worldwide, and most of them are in Japan. The number of FTTH users in Japan increased 100% in 2006, to 7.94mil. The growth rate of FTTH users in the U.S. has been growing from this year. There were 1.34mil. fiber accessed homes and 7.9mil. fiber passed homes at the end of March, 2007, all doubled the numbers in March, 2006. European FTTH market grows slower than Japan and the U.S. However, France Telecom has decided to deploy FTTH more rapidly this year, and other incumbent carriers will follow up. So European FTTH market will also grow faster this year. The FTTH users in Europe will increase to 1.65mil. this year from about 1mil. in 2006.

Chinese FTTH market is germinating
According to a forecast from one market research company, Chinese FTTH market will increase by a growth rate of 300% per year in the 3~5 years. The mainly drive forces include: 1) Both China Telecom and China Netcom are testing various FTTH technologies. 2) Many local governments have made policies encouraging FTTH development. 3) The CATV industry will rebuild the current CATV network to a bi-direction network nationwide. 4) As an official sponsor of Beijing 2008 Olympic, China Netcom will deploy FTTH actively. 5) The cost of FTTH equipment will decrease rapidly with the large scale commercial deployment in the developed countries.

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