First of all, from the global optical communication industry, the optical fiber industry is in short supply. From the perspective of regional division, Europe and the United States and other regions are relatively short. China's optical communication market has been very mature. According to statistics, China's optical fiber market demand reached 160 million in the first half of 2017, compared with 280 million last year. Since 10 years ago, more than half of the global optical fiber usage has occurred in China, so the development situation of China's optical communication industry is very good.Chinese fiber fusion splicers are also developed better and better.

We can also see the development of China's optical communication industry from two aspects: wireless and wired. Wireless means mobile phones. By the end of July this year, the number of mobile phone users has reached 1.37 billion, and it is not uncommon to have one. Among them, the number of 4G users has reached 910 million. It can be imagined that the number of base stations, optical fibers and optical cables we need to lay in the face of so many mobile phone users will be in great demand. This will support the market demand of 160 million yuan in the first half of the year just mentioned. Another is cable, which can be seen from the "fiber-to-home" perspective. By the end of July this year, the total number of Internet broadband access users in China had reached 326 million. This year, 62 million new users have been added. Japan has only developed more than 30 million "fiber-to-home" in 20 years. From this, we can see that the development of China's optical communication market is good, supported by actual demand, rather than the result of blind investment.

In addition, 5G is definitely the most noteworthy, we will focus on the 5G commercialization schedule next, major Chinese operators are actively preparing for the end of 4G and the coming of 5G.