Demand For Surge Protectors In The Communications Industry
In 2013, the communications industry invested 375.47 billion yuan in fixed assets. According to the "12th Five-Year Plan for the Development of the Communications Industry," cumulative investment in the communications industry will exceed 2 trillion yuan during the 12th Five-Year Plan period. Based on the 2010 fixed asset investment in the communications industry, the compound annual growth rate for the next five years is expected to be 7.57%. Furthermore, this industry also has a significant demand for surge protective device services.
On December 4, 2013, the Ministry of Industry and Information Technology officially issued 4G licenses to the three major operators, with China Mobile taking the lead in launching 4G commercial services. In 2013, China Mobile invested 41.7 billion yuan in the construction of 200,000 4G network base stations. In 2014, 4G investment is expected to reach 40 billion yuan, and the number of existing 4G base stations will reach 500,000. China Unicom and China Telecom are also actively promoting 4G network construction and commercialization. According to the plan, China Telecom's 4G network investment in 2014 is expected to reach 45 billion yuan, and China Unicom's 4G investment in 2014 will exceed 10 billion yuan. Although the three major operators have different 4G network construction plans, compared to the scale of base station construction during the 3G era, each operator is expected to maintain approximately 200,000 4G base stations over the next three years, bringing the total number of 4G base stations built by the three major operators to 600,000. Assuming a construction cost of 500,000 yuan per base station, the three major operators' direct investment in 4G base station construction alone is expected to reach 300 billion yuan.
Regarding global 4G network investment, the global LTE market is forecast to exceed US$10 billion for the first time in 2013, more than doubling its 2012 figure.
With the continued development of the communications industry, demand for surge protector services will grow rapidly in the coming years. It is estimated that demand for surge protection device services in my country's communications industry will reach 9.207 billion yuan in 2015.
