Home » The cost of fiber optic cables doubles as demand increases

The cost of fiber optic cables doubles as demand increases

It has been a few years now that we have experienced price increases in almost every aspect of our lives. We can talk about price increases in food, gasoline, Material and a host of other things. One of the people affected, which is quite significant in our lives, is the fiber optic cablewho saw his cost double in only 16 months. And this, while the demand for it is exploding more and more.

In the world of hardware, we are going through a period of shortage of components, which affects all sectors. One of them is the fiber optic cables, those that allowed us to enjoy a much faster and more stable internet connection. These have seen their price double in just over a year due to the huge request of the network providers Yes data centersadded to the lack of stock and plant closures due to the COVID-19[feminine].

In March 2021, the kilometer of fiber was worth 3.7 dollars, it now costs 6.3 dollars

Duplicated Fiber Optic Price Kilometer

According to market research Raw Group, the average fiber price in March 2021, was $3.7 per kilometer of fiber, while it currently costs $6.3. On the other hand, the use of fiber optic cables has increased by 8.1% YoY in the first half of 2022. Among the countries that use it the most, China at the top of the list with 46% of worldwide use, while North Americawhere demand increases the most, represents the fifteen% in use worldwide.

One of the causes that produce the shortage of fiber optic cables to meet the current demand would be helium. This is generated in floors manufacture of Russia Yes UNITED STATESwho suffered interrupts Last year. For this reason, the cost of helium used to create fiber optic cables has more than doubled in the past two years. Thus, helium reached $2,000 for Dewar (its container) of 100 liters.

The situation is so critical that Wendell Weeks, CEO of Corning, one of the largest producers of fiber optic cables in the world, says it has not experienced such a crisis. However, he is optimistic about his company’s ability to overcome this situation. And this is how the company increased its production, obtaining in the first quarter $1.3 billion in revenuea 28% more.

Delivery times for fiber optic cables range from 20 weeks to over a year

Delivery times for fiber optic cables

The rising cost of fiber optic cable, added to the lack of stock and long delivery times, are devastating the market. For example in UK the the the price cables rose in a fifty% and directors like Simon Hansford, UK Cloud CEOThey showed their concern. Considering this situation of scarcity, increased demand and too long delivery times, planning the purchase of it becomes a problem for companies.

But this is not the only sector affected, since the retailers they have to wait a long time to receive these leads. And it is that, according to Martin Blankengeneral manager of Exa InfrastructuresWe talk about some delivery delay who pass the 20 weeks to over a year. Even so, the Cru research group assures that the supply in United States it works relatively better than in Europe or China. Indeed, the domestic production of fiber optic cables in the United States receives recovery plans.

For example, the Rural Digital Opportunity Fund of the Federal Communications Commissionfeatures $20.4 billion. There is also the law on investment in infrastructure and employment, which $1.2 trillion invest, where $550 billion correspond to federal expenditures. For this reason, producers like Corning are taking advantage of the situation and claiming to have used $275 million capital expenditures in 2021.

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