A New Emergency Procurement Reflects Urgent Network Demand
China Telecom has officially released a 2026 emergency procurement project for outdoor fiber optic cables in Heilongjiang Province, with a total budget exceeding RMB 55.8 million (≈ USD 7.7 million, tax excluded).
Unlike traditional centralized tenders, this project:
- Covers the entire province
- Requires delivery within 15 days
- Does not divide into multiple bidding packages
This structure highlights a clear signal:
👉 urgent and immediate demand for network infrastructure expansion
Core Product Structure: Standard GYTA Series Dominates
The procurement focuses entirely on outdoor single-mode G.652D fiber optic cables, mainly:
- GYTA series (4–288 cores)
- GYTA53 (armored) variants (24/48/96 cores)
These configurations are widely used in:
- Metropolitan backbone networks
- Access and distribution layers
- Harsh outdoor environments
👉 This confirms that standard loose tube armored cables remain the mainstream choice for large-scale telecom deployments.
Pricing Breakthrough: Fiber Cost Exceeds Key Threshold
One of the most critical signals in this tender is pricing.
- 4-core cable: ~USD 215 / km
24-core cable: ~USD 520 / km
288-core cable: ~USD 5,170 / km
After calculation:
👉 Fiber cost reaches ~RMB 105 per core-km
This is highly significant because:
- It exceeds the psychological threshold of RMB 100/core-km
- It is ~50% higher than previous China Telecom bids (e.g., Guangdong round)
What it means
- The fiber price upcycle is now confirmed
- Upstream manufacturers (preform & fiber) will see margin recovery
- Operators are accepting higher procurement costs
Supplier Allocation Model: Tiered Share Distribution
The project will select 4 suppliers, with a clear share allocation:
- 1st supplier: 40%
- 2nd supplier: 30%
- 3rd supplier: 20%
- 4th supplier: 10%
Strict rules apply:
- Any bid exceeding price limits → automatic rejection
- Minimum requirement: RMB 10M+ similar project experience (last 3 years)
- No agents or consortiums allowed
👉 This reflects a typical China Telecom risk control strategy: diversify supply while maintaining price discipline
Industry Trend: Emergency Procurement Becomes the Norm
Recent procurement activities across multiple provinces in China show a consistent pattern:
- Increasing use of emergency tenders
- Continuous release of regional demand
- Short delivery cycles
This indicates:
1. Strong Demand Drivers
- Broadband expansion
- Data center interconnection
- “Computing power networks” (算力网络)
2. Supply Strategy Gap
Operators currently lack a long-term procurement stabilization strategy
A Strategic Insight for Global Buyers
Compared with international practices, a potential direction is:
👉 Long-term supply agreements (LTAs)
Benefits:
- Lock in pricing expectations
- Reduce volatility risks
- Ensure stable supply
This approach is already common in:
- Latin America
- Europe telecom projects
Key Takeaway
This tender is more than a regional procurement:
✔ Confirms fiber price recovery cycle
✔ Signals sustained global demand for fiber infrastructure
✔ Highlights the shift toward faster, more flexible procurement models
For Telecom Contractors and Distributors
Now is the time to:
- Reassess inventory and procurement strategies
- Monitor fiber price fluctuations
- Secure reliable supply partners
