The topic of this monthly report is "Global Fixed Broadband situation", which introduces the development of fixed broadband in the world. By the end of the first quarter of 2021, fixed broadband subscribers grew by 1.98 percent on a quarterly basis, and the number of fixed broadband connections reached 1.2 billion. The growth rate was almost double that of the first quarter of 2020 as the broadband market continued to recover from the effects of the global pandemic.

Operators: In July 2021, the net increase of 5G subscribers of the three operators was 73.715 million, and the increase of broadband subscribers was 4.012 million. The three operators achieved revenue of 827.058 billion yuan in the first half of 2021, up 14.5% year on year, while capital expenditure in the first half was lower than the same period last year, down 25.08% year on year. In terms of collective procurement, China Mobile will launch centralized procurement of feeder and feeder connector products from 2021 to 2023, with 12 types of feeder products to be purchased. Feeder connector 34 models, procurement scale of about 232.8 million meters of feeder and feeder connector about 72.4740 million. China Unicom issued the bidding announcement of 2021 WDM OTN product centralized procurement, planning to purchase 5927 sets of WDM equipment, 76339 WDM equipment ports and 72793 sets of OTN-U/A equipment. In carrier news, the $1.2 trillion U.S. Infrastructure bill will allocate $65 billion for broadband, and AT&T said supply chain constraints are cutting into the company's fiber expansion plans.

Equipment segment : ADTRAN Q221 revenue was $143 million, up 10.9% year-over-year, and profit was $5,086 million, versus net income of $752,000 a year ago. Infinera Q221 posted a net loss of $35.6 million on revenue of $338 million, up 1.78 percent year over year. VIAVI reported sales revenue of $311 million in the fourth quarter of fiscal 2021, up 16.6% year-over-year. Cisco reported revenue of $13.1 billion in the fourth quarter of fiscal 2021, up 8% from a year earlier. Cisco posted its highest growth in product orders in more than a decade. On the equipment front, Ericsson won a 3 percent share of 5G contracts with China Telecom and China Unicom. NEC and Fujitsu conduct interoperability test trials for 5G base station equipment.

Component segment: Some domestic component players reported positive first-half results. AOI reported sales revenue of $54.2 million in the second quarter of 2021, down 16.9% from $65.2 million in the same period last year. IPG Q221 saw revenue growth of 25% yoy, Fabrinet saw revenue growth of 26% yoY, and Lumentum saw revenue growth of 6.52% yoy. Emcore transferred production equipment and overseas manufacturing operations from Hnonda to Fuchuang. Chaozhou third Ring Revised its 7.5 billion yuan fundraising plan to 3.9 billion yuan for capacitor expansion and r&d base construction.

On the chip side, SiFotonics' shipments of single-chip integrated 100G/400G silicon optical chips based on CMOS processes have maintained high growth for four consecutive quarters, with a compound growth rate of over 100%, showing strong growth in silicon optical integrated products. Intel will purchase 5nm chips from TSMC. Fiber optic cable, fiber optic cable companies announced results in the first half of the year, both happy and worried. Prysmian wins €66m umbilical cord contract.

Acquisitions and mergers: Marvell announced the acquisition of Innovium for $1.1 billion, which will complement Marvell's wide range of Ethernet products and expand Marvell's portfolio of silicon solutions for cloud data centers. ADTRAN Inc. and ADVA Inc. announced they have agreed to merge their businesses in a $930 million transaction that will boost fiber optic networks in Europe and the United States.

New products and technologies ADVA has introduced the FSP 150-XJ128 for 25Gbit/s connectivity. New Precision introduces LC compact built-in light mask simple adaptor & connector kit. Hisense Broadband will launch two 50G PON OLT optical modules in CIOE 2021. Solectron technology and Xinhua 3 H3C have released IPoverDWDM solutions for 400G ZR/OpenZR+ Coherent Optical modules.

Market analysis: LC report points out that Q221 optical communication industry continues to grow strongly, but supply challenges will also continue; COVID-19 and a lack of business cases are slowing migration to 5G SA. According to ABI Research, the global 5G private network market has a CAGR of 60% over the next decade. According to Dell'Oro, global server spending is at an 11% CAGR over the next five years, with global broadband spending accelerating. While the 4G transition to 5G continues to accelerate, Dell'Oro again raised the 2021 RAN market.

   Operator part: In July 2021, the three major operators have a net increase of 73.715 million 5G users and a 4.012 million increase in broadband users. The three major operators achieved revenue of 827.058 billion yuan in the first half of 2021, a year-on-year increase of 14.5%. The capital expenditure in the first half of the year was lower than that of the same period last year, with a year-on-year decline of 25.08%. In terms of centralized procurement, China Mobile will start the centralized procurement of feeder and feeder connector products from 2021 to 2023. The products to be purchased are 12 types of feeder; 34 types of feeder connectors. The procurement scale is about 232.8 million meters of feeder and about 7,247.40 of feeder connector. Ten thousand. China Unicom issued the 2021 WDM OTN product-style centralized procurement bidding announcement, and plans to purchase 5927 sets of WDM equipment, 76,339 WDM equipment ports, and 72,793 sets of OTN-U/A equipment. In terms of operator dynamics, the United States announced a $1.2 trillion infrastructure bill that will allocate $65 billion for broadband. AT&T said that supply chain restrictions will reduce the company's optical fiber expansion plan.

   Equipment vendors: ADTRAN Q221 revenue of 143 million US dollars increased by 10.9% year-on-year, profit was 5.086 million US dollars, and net income of 752,000 US dollars in the same period last year. Infinera Q221 revenue of $338 million increased by 1.78% year-on-year, with a net loss of $35.6 million. VIAVI's sales revenue for the fourth quarter of fiscal 2021 was US$311 million, a year-on-year increase of 16.6%. Cisco's revenue in the fourth quarter of fiscal 2021 was $13.1 billion, a year-on-year increase of 8%. Cisco's fourth quarter results achieved the highest product order growth in more than a decade. In terms of equipment vendor dynamics, Ericsson won a 3% share in the 5G contract between China Telecom and China Unicom. NEC and Fujitsu conduct 5G base station equipment interoperability test trials.

  Part of device vendors: Some domestic device vendors report positive growth in the first half of the year. AOI's sales revenue for the second quarter of 2021 was US$54.2 million, a decrease of 16.9% from US$65.2 million in the same period last year. IPG Q221 revenue increased by 25% year-on-year, Fabrinet increased 26% year-on-year, and Lumentum revenue increased by 6.52% year-on-year. Emcore transferred its production equipment and overseas manufacturing business from Hytera to Fortune Superior. Chaozhou Sanhuan adjusted its 7.5 billion yuan fundraising plan to 3.9 billion yuan for capacitor expansion and R&D base construction. .

In terms of chips, SiFotonics' single-chip integrated 100G/400G silicon optical chip shipments based on CMOS process have maintained rapid growth for 4 consecutive quarters, with a compound growth rate of more than 100%, showing the strong growth of silicon-optical integrated products. Intel will purchase 5nm chips from TSMC. In terms of optical fiber and cable, optical fiber and cable companies announced their first-half results, with mixed results. Prysmian won a 66 million euro umbilical cable contract.

   In terms of mergers and acquisitions: Marvell announced the $1.1 billion acquisition of Innovium. After the completion of the acquisition, it will complement Marvell's extensive Ethernet products and expand Marvell's silicon solution portfolio for cloud data centers. ADTRAN and ADVA announced that they have reached a business merger agreement with a transaction value of US$930 million. After the completion of the acquisition, it will promote the construction of optical fiber networks in Europe and the United States.

   In terms of new products and new technologies, ADVA launched FSP 150-XJ128 to achieve 25Gbit/s connection services. Sunco Precision solemnly launched a new LC compact built-in light shield simple adapter & connector kit. Hisense Broadband will grandly launch two 50G PON OLT optical module products at CIOE 2021. InnoLight Technology and Xin H3C H3C released the 400G ZR/OpenZR+ coherent optical module IPoverDWDM solution. .

   Market analysis part: The LC report pointed out that the Q221 optical communications industry continues to grow strongly, but supply challenges will continue; COVID-19 and the lack of business cases are delaying the migration to 5G SA. According to ABI Research, the global 5G private network market CAGR will reach 60% in the next ten years. According to data from Dell'Oro, global server spending CAGR will reach 11% in the next five years, and global broadband spending will accelerate. At the same time, the transition from 4G to 5G continues to accelerate, and Dell'Oro once again raised the RAN market in 2021.