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1. Power optical fiber OPLC will become the preferred solution for smart grid users. Fiber to the home is an inherent requirement for the development of smart grids. At present, the rate of fiber optics at the user end of the power grid is almost zero. Optical fiber composite low-voltage cable (OPLC) combines optical fiber and cable to manufacture, and completes the fiber to the home while laying the cable, and the product gross margin is higher than that of ordinary optical cable. Compared with the mainstream FTTB+LAN, the OPLC-based PFTTH solution only increases the material cost by less than 10%, and can reduce the overall cost by about 40%.
2. The State Grid is rapidly advancing the introduction of power optical fiber OPLC into homes. State Grid has selected 10 network province companies to start the first batch of pilot communities, and plans to cover 47,000 households within the year; in early July, it signed a strategic cooperation with China Telecom. The low profile of the power grid of "serving only without competition" is conducive to gaining support from the parties involved in the three networks. We expect that after the power grid’s 12th Five-Year Plan is finalized, the power fiber-to-the-home will usher in explosive growth. Smart grid and traditional three networks are beginning to merge on the user side, and we are about to enter the era of multi-network integration.
3. The active promotion of State Grid will give birth to a new market for OPLC and increase the demand for EPON equipment. It is conservatively predicted that the average annual potential demand for OPLC from new residential buildings alone will exceed 35 billion yuan (640,000 km/year), and the market size is expected to reach 7 billion in 2015, with a compound growth rate of 65%. At present, the only suppliers with OPLC products are Zhongtian Technology and Hengtong Optoelectronics. This move will also increase the demand for optical communication EPON equipment (Fiberhome).
4. A microwave frequency band originally used for communication in the power sector will be taken back by the state. Therefore, in recent years, many power companies have successively started the construction of optical fiber communication lines and systems. The reason why ADSS optical cable for power communication is favored is that it is added to the towers of the high-voltage transmission lines that have been built, which effectively utilizes the high-voltage tower resources of the power sector and saves a lot of engineering construction costs.
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