Tuesday, May 9, 2017

The Need for Fiber Allocation

Major wireless carriers are prepping for 5G rollouts by forecasting network construction needs over the next 2-3 years. They are announcing partnerships with major manufactures and they have access to all of the materials for installation. If you think about this agreement from a glass production standpoint – domestic yearly production is 50 million FKM – and this deal alone takes up 20 million FKM for each of the next three years. The easy prediction is that carriers purchasing direct will get turned off, and the market is going to get significantly tighter as we move forward – not only from a production standpoint, but also in terms of price and availability.

Communication remains the key – not only internally between your sales, engineering and operations groups, but also with your major suppliers and distribution partners. All broadband providers must already be thinking about their fiber needs not only this year but next year, so that they can ensure their ability to serve customers.

domestic yearly production is 50 million FKM – and this deal alone takes up 20 million FKM
And 5G is only one market mover impacting the insatiable need for fiber optic cable. From fiber-to-the-home players, to the Internet of Things (IoT), municipal builds and traditional bandwidth projects, the telecommunications industry remains in a hyper-build phase. The key to combat any mitigating factors for carriers and contractors alike is to be planning for your fiber needs 12-18 months in advance. Allocating fiber with a well-positioned distributor should be your number one priority. This would eliminate price volatility, lead time fluctuations, and supplier uncertainty.

Comstar Supply is well positioned with fiber and all of the major product lines that accompany installation. It has created a customized solution that takes the guesswork out of your outside plant needs and allows for a smooth transition from planning to construction. We work with our customers to tailor a system that allows us to distribute fiber facilities monthly based on your needs, while allowing for additions or subtractions on your orders. This arrangement not only provides the security of having your most critical resource (fiber) but also allows flexibility regardless of market conditions.

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