[people's daily] China Telecom plans to triple the number of users for its fiber optic broadband service this year to reach 30 million.
The company further aims to grow the user base to 100 million by the end of China's 12th Five-Year Plan (2011-2015).
China Telecom plans to cover every city in China with the fiber broadband service in three years and convert all copper lines to fiber, China Daily reported. Under the Five-Year Plan, the Chinese government will focus on developing the telecommunications infrastructure, with total investments reaching 2 trillion yuan. Broadband development would account for 80 percent.
"Only 23 percent of Chinese families have Internet access now, so China still has huge potential in this industry," said China Telecom chairman Wang Xiaochu.
This plan will provide broadband access, high-definition IPTV, 3D and rich media services that require bandwidth of about 10 megabytes and above.
China Telecom will follow the government's policies to improve infrastructure and cooperate with local authorities to integrate telecommunications, television and Internet networks.
The company further plans to introduce cloud computing and Internet of Things services, more internet applications for mobile and fixed Internet users and to accelerate its transformation into a comprehensive telecommunications provider.
It is expected to benefit the optical fiber firms.
Orient Securities holds that this large-scale user access upgrade will stimulate the upgrading of fiber optic metropolitan area networks and backbone transmission networks, and a fast-growing optical communication sector is expected.
Donghai Securities estimates that the investment made by the telecom operators in broadband construction will increase by 47 percent year on year in 2011 to 68 billion yuan. The broker believes that related accessory, equipment, and optical fiber cable sectors are will be the top three most popular sectors in the stock market.
China Telecom to build world's largest fiber optic network