Harsh Pagay, Executive President – Optical
Fibre and Optical Fibre Cable, HFCL

Driving innovation in optical fibre technology

The advent of 5G and advancements in the telecom network have opened new opportunities for telecom solutions and equipment providers. HFCL is addressing evolving market requirements by offering advanced optical fibre solutions, open-source wireless access solutions, multiband 5G radios and state-of-the-art system integration services. Harsh Pagay, executive president – optical fibre and optical fibre cable, HFCL shares his views on the company’s focus areas and future plans…

What are the key trends in the OFC market?

Globally, optical fibre cables (OFCs) are becoming more compact, particularly in regions like Europe, where existing ducts are utilised rather than installing new ones. This approach saves time and cost, and has popularised the production of cables with minimal diameter and high fibre density. For instance, our recently launched 864-fibre cable boasts maximum fibre density and uses G657A1 fibre.

There is also a growing focus on high-fibre count intermittently bonded ribbon (IBR) cables, which are becoming increasingly popular in data centres. Currently, these include 432-864-and 1,728-fibre cables, with new developments for 3,456-and 6,912-fibre cables. The company is also focusing on last-mile connectivity solutions tailored to specific customer needs across regions like India, the US and Europe.

Are innovations implemented globally being applied in India?

Yes, these innovations are being introduced in India, where data centres require cables specifically designed for both inter-data centre connectivity and within-data centre applications. Currently, low-fibre cables are used in Indian data centres, but as new hyperscale data centres emerge, there is an anticipation for high-fibre density cables, which are actively being marketed in the country.

What are the sustainability trends within the OFC industry?

Decarbonisation is a major focus, with many telecom operators actively engaged in environmental, social and governance initiatives. HFCL has appointed Deloitte to help reduce its carbon footprint and has achieved a zero waste-to-landfill certification at its Hyderabad facility. Renewable energy sources are also being utilised across our factories–80 per cent of the Chennai plant’s power comes from renewable sources, and similar models are being adopted in Goa and Hyderabad. Efforts in rainwater conservation and wastewater recycling for gardening and process use further reflect our commitment to sustainability. These initiatives are projected to yield cost savings over the long term by optimising resources and energy consumption.

HFCL recently set up a production plant in Poland. How will this augment the company’s production capacity?

The new Poland facility is projected to have a 3 million fibre km capacity. However, product types and capacity needs are under review, considering the cost structure differences between Europe and India.

What are the company’s aspirations for the Indian market?

HFCL holds over 60 per cent of India’s OFC market share, although the market is currently down due to various geopolitical and economic factors affecting both domestic and international demand. However, there is optimism for recovery in early 2025, driven by pent-up demand.

How does HFCL differentiate itself from its competitors?

HFCL emphasises customer-centric solutions, working closely with clients to understand their unique roll-out challenges and deliver tailored solutions quickly. The company’s fast turnaround time–often under three months–builds customer confidence, allowing HFCL to expand its market presence. This is achieved through a combination of skilled engineers, advanced machinery and world-class testing facilities. Comprehensive simulation and testing capabilities are available across factories, such as the Hyderabad facility’s blowing track, allowing the company to pre-validate products and ensure customer confidence in tested solutions.

The Telecom Regulatory Authority of India (TRAI) has proposed sharing passive and active telecom infrastructure. What are your views in this regard?

This is a positive move, especially for new entrants looking to roll out networks and services quickly. However, competition between operators presents challenges for new players, who may still prefer independent infrastructure. Also, I believe, the adoption of shared infrastructure will take time.

What is your outlook for the industry?

While there has been a rapid 5G roll-out, the development of 5G use cases has not kept pace, slowing down the market. Going forward, demand for data will continue to rise with next-generation technologies, increasing the need for OFC. Optical fibre remains unparalleled in terms of bandwidth, speed and latency. The current slowdown is expected to be temporary, with demand likely to increase, especially with future advancements like 6G.