China Mobile builds fiber optic line network optical company full of blood resurrection

Being hit by the "Chinese hockey stick effect" sounds like it hurts, but many optical companies want to be able to land on this road.

Needham analyst Alex Henderson said in a research report this week that China Mobile's coherent 100G network construction is the largest 100G backbone network planned to be deployed globally, and seems to use a large part of the optical component supply and drive The healthy development of optical stocks in the coming months.

Henderson writes: "More and more evidence shows that China will truly realize the long-awaited, long-awaited "Chinese hockey stick effect." China Mobile is expected to create 1.3- of more than 400 cities across China. 14,000 optical fiber line networks."

This prospect has already emerged since China Mobile began a new round of procurement for 100G network construction. Companies such as Huawei, ZTE, Fiberhome, Alcatel and Shanghai Bell have reportedly acquired more business opportunities after winning some two rounds of procurement earlier this year.

In terms of optical components, Henderson and Raymond James analyst Simon Leopold believes that Huawei and Alcatel-Lucent supplier Finisar may be the main beneficiaries. In addition, in order to improve the company's 100G, NeoPhotonics Semiconductor acquired Lapis Semiconductor last year and now expects to benefit from the Chinese market.

Leopold wrote in a research report on Finisar last week: "Considering Huawei is the biggest beneficiary of 100G backbone construction, Alcatel-Lucent has also participated in the project as the only non-Chinese vendor. We believe China Mobile is 2014 may bring many amazing opportunities."

Henderson's research report is in fact focused on the downholding of his Riverbed stock, but he believes this is an opportunity to comment on China Mobile's deployment. As for the broader market, he added: "This year is a good year for fiber optic networks. We believe that the conditions in the US and Europe are gradually improving, which should drive the rebound in emerging markets."