According to analysis from market monitoring company Cru Group, fiber optic prices have increased by 70% over the past 18 months as demand for internet-based services increased and countries are promoting the deployment of the 5G network.
Due to the sudden doubling of implementation costs, there are now many questions surrounding whether countries can achieve their infrastructure targets and whether this could impact global connectivity, explains Cru Group.
Although fiber optic cables are not a technology that attracts much attention, they are a basic component of all major infrastructure projects, from high-speed broadband to 5G and underground cables as a platform for the services of the world's largest technology companies.
The current shortage of fiber optic cables will also affect the development of new data centers and hinder expansion plans between VPN companies, cloud storage, and web storage.
The fiber optic shortage can stem from a variety of factors, including strong demand (consumption increased by 8.1% over the same period last year), leading to a shortage of key manufacturing components, such as helium and silicon Tetrachloride.
The CEO of Corning, the world's largest optical cable maker, said he had never seen such an optical cable crisis and stressed that his company was working hard to improve the situation.
In addition to price fluctuations, the shortage of fiber optic cables also prolonged delivery time. For large companies with close relationships with manufacturers, they can get products faster, but small companies are said to have to wait until a year to complete orders.
However, according to experts' predictions, the current shortage is more temporary and cristical than a long-term problem.
