The world has a fibre deficit, with prices rising by 70% in some countries

The world has a fibre deficit, with prices rising by 70% in some countries

Cru Group analysts have estimated that the shortage of fibre-optic cables in various regions of the world has increased the cost of fibre optics and increased delivery times, threatening the ambitious plans of companies to develop modern telecommunications infrastructure.

According to analysts Cru Group, Europe, India, and China are the regions with the largest increase in fibre-optic cable prices, and the company estimated that the cost of fibre-optics has risen from a record low of $3.70 per kilometre of cable in March 2021 to $6.30 per kilometre of cable at present, indicating an increase of 70 per cent.

Although the coronavirus pandemic has led some of the largest technology and telecommunications companies to reduce investment, demand for Internet services has increased dramatically, resulting in a shortage of fibre-optic cable, which is one of the most important elements of the Internet infrastructure. Large companies such as Amazon, Microsoft, Google and Meta*Platforms are building new data processing centres to meet growing demand. They also have to build trunk lines that connect different regions of the world. Together, different governments are setting ambitious targets for the development of broadband and 5G networks, both requiring the laying of huge amounts of fibre-optic cables underground.

," noted Cru Group analyst Michael Finch.

Cru Group estimates that total consumption of fibre-optic cables increased by 8.1 per cent in the first half of 2022 compared to the same period last year. China accounted for 46 per cent of the total, and North America became the fastest growing region with an annual growth rate of 15 per cent.

," commented on the issue, Wendell Weeks, CEO of Corning, one of the world's largest fibre-optic cable manufacturers, and noted that Corning was increasing production to meet growing demand from governments, telecommunications companies and technological giants, among other things, to build new production sites in the United States and Europe.

Although the cost of fibre-optic cables has peaked since July 2019, North America has suffered less than Europe, China, and India.

Martin Blancen, Executive Director of Exa Infrastructure, an international digital infrastructure company, reported that fibre-optic cable prices had increased by at least 20 per cent over the past six months; he also noted that in some cases the cost of fibre-optics had to be tracked literally day by day, which had resulted in a significant increase in the delivery time of fibre fibre from 20 weeks to almost a year for many of the company's small clients.

* Listed on the list of voluntary associations and religious organizations in respect of which the court has taken a legally enforceable decision to abolish or prohibit activities on the grounds provided for in Federal Act No. 114-FZ of 25 July 2002 on countering extremist activities.