CIOE2008: WTD

Looking at the broad growth of FTTH with caution
WTD participates in CIOE with eye-catching booth of bright color and simple good-looking design. There are visitors gathering at its booth all time. Dr. Yuanzhong Xu, deputy general manager of WTD, told us that with an increase of 88 percent of orders by the end of September in this year, only 55 percent of ordered products were shipped . There is heavy pressure of product manufacturing capacity for them. Driving factors of demand in optical component market are as follows:
1. Opportunity of Olympic Games. Most of the orders were placed before the Games which strength the development of entire industry by its high level standard. So the overall result of this half of year is excellent.
2. FTTx program finally starts in domestic market in 2008. The deploying of FTTx has brought challenges and opportunities for component manufactures. Japan and South Korea made remarkable promotion of FTTx in 2006 and 2007, and in 2008, China finally gets its way to boost FTTx, especially in the first half year.
Some successful achievements displayed on the show, from which we can have a clear view of WTD:
28-year-old history in optical components industry;
More than one hundred of patents and national standards;
30,000 chips are shipped each day;
Serving more than 3,000 customers;
Provide product to nearly 40 global telecommunications equipment manufacturers;
Shipment of transceivers is more than 3,000,000 each year.

FTTx promotes optical components market in China
The speech “The Evolvement and Outlook on China's Optical
Components Technology and Market” given by Dr. Xu on CIOE2008 attracts many attentions.

Reviewing the evolution of technologies and market of optical components with his personal experience, Dr Xu believes that the breakthrough of optical communication technology lies on the evolution of components technology except fiber technology. Today, Chinese optical component vendors only compete each other on lower cost because of shortage of innovation. Dr Xu emphasized awareness of intellectual property should be core competition for Chinese optical communication business.

At the end of the speech, Dr. Xu predicted Chinese optical component technology and market in the next 5 years. With reference to some high-end product, it indicated that Chinese optical component technology will be 5 years behind that from oversea vendors. However, China is playing a more and more important role in the world, with a quarter to one third of market share of world’s optical component in the future. There will be hundreds of FTTx optical components engage in connector, coupler, splitter, transceiver, BOSA/TOSA/ROSA and so on in china in next 5 years, and most of them are concentrated on the end of the entire industry chain. It is also predicted that two or three vendors will show up in global market occupying more and more market shares of the world.