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100G OTN Network Price Fight

Author: SOPTO

Inviting cake attracted intense fighting between four domestic 100G supplier Huawei, ZTE, Shanghai Baer and Beacon. In recent collective purchase of China Telecom closing to 3000 card 100G, four major equipment manufacturers have launched a contest and come to the conclusion. To China Mobile collective purchase scale “greater than the largest”, industry also has psychological expectations of price war, but never thought it would be so cruel, let equipment bidding manufacturers feel the biting chill.


Wei Leping has pointed out, 100G industry chain has been mature, all components and subsystems have multiple commercial ability of many manufacturer. In cost aspect, he expects 100G 5-6 times of 10G, that is, the cost of per bit reduce 40%-50%, there may be distance at the beginning, but can accept. This China Mobile 100G tender, firm business quotation will let Wei always be hardly worthy of belief. According to sources, the four major equipment manufacturers set off a round of fierce price competition, straight to the bottom line of profits, what’s more, there exist manufacturers offering 100G quotation directly through 40G price, cost and price strange appeared occasion of “upside down”.


Although enclosure before earn money is a widely used means of equipment manufacturers, but price war is a double-edged sword. This country network collective purchase battle of China Mobile 100G has almost no bottom line price, will inevitable impact the benign development of industry chain. Equipment manufacturer earn advertisement but lose money, downstream supplier of modules and components will also bear heavy pressure of cost reduction. A device manufacturer bluntly says: “if this is the occasion of the most high-end 100G optical, what hope will communication industry have?”


40G broken halberds defeat, although there are technical, standard defect, but what more critical is its weak industry chain. As revolutionary technology of 100G optical communication, if do not want to repeat the mistakes of 40G, a strong industry chain is essential to its development. This 100G tender of China Mobile 8500 boards reflects the chaos, and has sounded alarm to the industrial chain.

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