Used in the backbone, backhaul and access networks, cables are a key constituent of telecom infrastructure. While copper cables form a large part of the legacy telecom networks in the country, the uptake of optic fibre cables (OFCs) has been gaining momentum, owing to its cost as well as performance-related advantages over copper.

OFC deployment is set to witness rapid growth in the coming years, driven mostly by fixed broadband, replacement of BSNL’s ageing copper network, wireless backhaul network upgradation, and higher speed requirements of 3G and BWA networks.

The segment has already witnessed growth in demand. In the past three years, it grew at a CAGR of about 13 per cent, reaching 10 million fibre km in 2010 from around 7 million fibre km in 2007. In 2010, the demand for fibre in India was the third highest globally, after China and the US.

This demand is likely to increase further. Future capacity requirements for wireless will require robust optic fibre backhaul, especially where data usage is higher. Moreover, on the access network side, FTTX networks are set to play an important role in driving this demand as users opt for high speed broadband, high definition video, real-time surveillance services, etc.

Though the sector faces operational challenges like right-of-way issues, long installation time, reduced lifetime of cables due to mishandling and complex tendering modalities, none of the hurdles are insurmountable.

Moreover, with the government keen to kick-start its pet project of building 250,000 km of OFCs across the country to connect all panchayats and villages with a population of 500 and more, the OFC industry is set to receive a major fillip. Another initiative, which involves the development of a 500,000 km long national OFC backbone in the next three years, will also be a major driver for this market.