Global Shortage of Fibre Optic Cable Threatens Digital Growth

A worldwide shortage of fibre optic cable has driven up prices and lengthened lead times, endangering companies' ambitious plans to roll out state of the art telecommunications infrastructure. From a report: Europe, India and China are among the regions most affected by the crunch, with prices for fibre rising by up to 70 per cent from record lows in March 2021, from $3.70 to $6.30 per fibre km, according to Cru Group, a market intelligence firm. Although the pandemic prompted some of the biggest tech and telecoms groups to slash their capex, there has been a surge in demand for internet and data services, leading to a shortfall in availability of the crucial but often overlooked material. Companies such as Amazon, Google, Microsoft and Facebook owner Meta are expanding their data centre empires to meet soaring demand, including laying vast international fibre networks under the ocean. Meanwhile, governments have set ambitious targets for the rollout of superfast broadband and 5G, both of which require vast quantities of fibre optic cable to be laid under the ground. Total cable consumption increased by 8.1 per cent in the first half of the year compared with the same time last year, according to Cru estimates. China accounted for 46 per cent of the total, with North America representing the fastest growing region, at 15 per cent year on year.

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