12/30/2011,As every year, we choose top ten most important fiber optics events in China. They are:

1 The merge rumor between Accelink and WTD

On July 4^th, CFOL reported that Accelink will merge with WTD. Accelink is called the no. 1 fiber optics public company in mainland China, and WTD is the largest domestic transceiver company, also the oldest fiber optic company in mainland China. They both belong to Wuhan Research Institute. Since 2003, the rumor that the two companies will merge never stop. This time, again, Accelink announced that they would stop the merge on July 14^th.

2 Hisence acquires Xinke

On August 17^th, Hisence announced to purchase the optical department of Chang an Xinke, an OEM factory of fiber optics components. Xinke is said to be the OEM contractor of some Japanese companies. Hisence did not announce the financial detail of this merge. As the leader of PON transceiver in China, the merge will increase its ability on OSA component manufacturing.

3 Finisar invests 140million USD in Wuxi

The No. 1 fiber optics company around the world, Finisar announced to invest 140 million USD in Wuxi, a city about 150 Km north to Shanghai. Finisar did not reply our inquiry about this investment, but it is said that they will move their manufacturing to Wuxi, but keep their R&D in Shanghai.

4 China Telecom announced list of joint purchase of PLC splitter

Because of its ambitious FTTH plan, China Telecom needs more PLC splitter products. This leads to the property of China’s PLC splitter business. However, the lower and lower purchasing price makes component suppliers less and less profit and bigger potential quality trouble in China Telecom’s FTTH network.

5 More Taiwan fiber optics component companies go public

On Feburary 25^th, FOCI went public, next month, on March 24^th, Trueligh went public, on August 31th, Coadna went public in Taiwan, On December, Luxnet went public.

6 More local fiber companies begin to manufacture pre-rod.

China has the no. 1 manufacturing capability around the world. However, before 2011, nearly no local fiber manufacturer can product pre-rod, the key material part of fiber manufacturing. In this year, Hengtong, Fiberhome, Futong, Faersheng etc began to invest on pre-rod manufacturing by cooperation with formal Japanese suppliers.

7 Two important professors passed away

Professor Ye, Peida, the famous fiber optics expert and former president of BUPT(Beijing University of Post and Telecommunication) , Professor Wang, Daheng, the so-called father of China’s optics industry passed away in this year.

8 Huawei planned to move its fiber optics business to Wuhan

Huawei has confirmed to invest at least 5billion RMB in Wuhan optic valley. Wuhan is famous for its fiber optics academic resources and fiber optics industry.

9 Harder to recruit new worker in fiber optics industry

With the increase of living cost in big cities of China, fiber optics companies have to provide higher salary to their workers. However facing lower profit, it is hard to continually increase salary. It will be harder for fiber optics companies to recruit new workers.

10 Faster development of FTTH in China

Both China Telecom and China Unicom began faster rollout of FTTH network. This year, China Telecom estimates to have 5 million FTTH subscribers and their network covered 30 million homes.