Indian optical fibre cable (OFC) manufacturers have been witnessing increasing growth owing to the rising global demand for these cables. With the world moving towards 5G, the demand for OFC is expected to go up further, opening up a plethora of opportunities for these players. At tele.net’s recent conference on “OFC Networks in India”, Sandeep Aggarwal, managing director, Paramount Communications Limited, and Manish Kumar Sinha, chief marketing officer, Sterlite Technologies Limited (STL), shared their views on the evolving global OFC landscape, the importance of fibre networks and upcoming opportunities. Edited excerpts…
How has been the industry growth in this space?
Sandeep Aggarwal
India requires a huge optical fibre network and we have not even begun. We will be deploying 1,700,000 km of OFC but that will only be the tip of the iceberg. India needs much more. The growth in terms of volumes is around 15 per cent. But in terms of quantum of sale, there has not been much growth this year. Next year there is going to be a huge jump because prices are now moving north.
Manish Kumar Sinha
Till 2017-18, we were on a huge upward curve globally. Somewhere during that year, with China deciding to take a halt, the whole market went into a slowdown. After 2018 till Covid, latent demand was just getting built up. Right now, globally, we are seeing growth rates upwards of 8 per cent. We are nearly back to the highs that we used to have. Global demand is higher than the 2018 level, but not significantly higher. However, we expect it to improve in the next couple of years.
The demand is very well spread not only in China but also in the United States, Europe and the UK. Global capacity is getting used now. Overall demand is around 540 million fibre km and the capacity in different stages would be around that number now. So, at this moment the growth in India is back. BharatNet is one of the biggest growth drivers in India. With 5G, telcos would push for tower fiberisation; however, 5G will also mean enterprise participation in fibre. So, growth in India will take off.
Does India manufacture whatever it needs or does it depend on imports?
Sandeep Aggarwal
STL has the capacity of 40-50 million preform fibre km and it is the only manufacturer of preform in India. We require more preform to be manufactured in India by STL and even by other players. This is a must for India to become a global hub. It may slightly harm the interest of entities such as STL, but multiple manufacturers of preform are required to become big like China. Although we produce about 70-80 million fibre km, the rest is all exported by India. So, India is a net exporter of OFC. But, if we want the capacity to compare with China, then we need to at least increase the production of optical fibre by four to five times and of preform by six times.
Manish Kumar Sinha
Yes, India can manufacture whatever it needs. But it also imports.
What are your views on the FTTH market in India?
Manish Kumar Sinha
Fibre-to-the-home (FTTH) is very similar to fibre-to-the-tower or providing fibre-to-the-enterprise. We think of all these as different fibre networks that allow 5G, Wi-Fi or Wi-Fi 6. Ideally, they should be planned together. Japan is one classic example. Another example is Germany where people have started doing theoretical conversion network planning. In India, FTTH needs to be expanded. STL is a big supporter of FTTH.
Do you see FTTH as a significant contributor to your demand?
Manish Kumar Sinha
I think FTTH is a reasonable contributor to demand. Internationally also, FTTH has been a classic driver of demand.
How do you see environmental sustainability as a part of your future strategy in terms of the raw materials that you are going to use?
Sandeep Aggarwal
In India, whatever raw materials we use are non-toxic. I don’t believe that cables are harming the environment in any way. So, there is not much impact on the environment due to the installation of cables. Yes, a plastic component is there, but it is not very thin and so it does not get into the water cycle. Hence, I do not believe this is a major issue.
Manish Kumar Sinha
I will answer it in three parts. First, in the manufacturing of OFC and preforms there could be a possibility that we could be harming the environment and therefore one has to look at sustainability and environmental readiness as one of the most important things in design. During the past three or four years, we have invested a lot in our capacity, both in terms of increasing it and renewing it. The number one priority for us right now is environmental, social and governance (ESG).
As an end-to-end producer of OFC, our company actually became the first one to be net zero to landfill. So, we do not waste anything that goes back into the landfill. It has become a trend in the industry. We were doing it for an end-to-end factory and now others are also doing it in India. Internationally, a lot of companies are doing it. The other thing that we are doing with regard to sustainability goals is that we are trying to become a net zero company by 2030. This is something that the entire industry considers as high priority.
Second, when we install OFC, it is not degenerative to the environment around it. However, there is a process of installing it which involves truck movement and digging, so there is some amount of environmental damage that one creates in that process. But, there is no long-term environmental damage because these are not leaky materials.
Third, by enabling data to travel, optical fibre saves us from running cars on the roads and planes in the air by allowing connectivity for work from home and those are the things that hurt the environment. I think the industry should be immensely proud of the fact that we are, in one way or the other, helping the world reduce the overall environmental load on earth. During the past two years, we did not stop working because these networks helped us work from home.
