Business

The first commercially viable low-loss optical fiber was invented in 1970, a breakthrough innovation that changed the world. Six years later, the first optical fiber in China was installed by the FiberHome Technologies Group, then a fledgling information and telecommunication product and solution provider. Since then, the optical fiber maker based in Wuhan, central China's Hubei Province, has grown into an "optical communications expert."

FiberHome has gained its five-star reputation by differentiating itself from other competitors in the market. "Our biggest advantage is our technology solutions [in optical fiber communication technology]. They set us apart from other manufacturers," Yang Zhuang, Vice President of the group, said.

FiberHome has been at the forefront of promoting the development of optic fiber communication in China. Taking the lead in light rod manufacturing technologies, the company has built an industrial chain of rod-fiber-optical cable, with annual production capacity of about 30 million core km. It was responsible for setting over 40 percent of domestic industrial standards and also played an important role in international standard-setting.

These achievements are the result of investments in research and development(R&D), which remains in excess of 10 percent of overall spending. In 2013, 1 billion yuan ($163 million) was earmarked for R&D, 11 percent of the revenue that year, signifying a 25.83-percent increase on the previous year's allocation.

"As an industrial leader in the optical communications industry, it is our responsibility to promote the benign development of the optical communications industry in China," said the company's Vice President Lan Hai.

Over the past decade, despite a risky economy, FiberHome has persevered with market-oriented reforms, using both international and domestic markets and resources to accelerate development of a customer-focused global service system.

Its efforts have paid off. Financial results in 2013 showed the company's contract sales exceeded 11 billion yuan ($1.8 billion), twice that of 2010, with net profit of 519 million yuan ($85 million), 1.4 times that of 2010. Meanwhile, as the trend of economic globalization accelerates, in 2013, the sales revenue in overseas markets jumped more than 50 percent to 1.24 billion yuan ($200 million), and it is expected to total 2 billion yuan ($330 million) in 2014.

Going Global

After establishing itself as a leading optical communication products and solutions provider in China, FiberHome has now increased its global presence.

"Our first priority is the emerging markets, including Asia, Africa and Latin America. After that we plan to expand our market share in developed countries," said FiberHome's International General Manager Li Guangcheng.

According to Li, emerging countries are important overseas markets because the conditions and demands from telecommunication operators there are similar to those in China. As a strategic telecom partner in Malaysia, FiberHome's products, technologies and solutions have been used in the local market for nearly 20 years. It has strong relationships with local telecom companies in Asia, seeking more cooperative opportunities. In Ecuador, FiberHome participated to establish Latham Fiberhome, a fiber optic cable factory, which could be seen as the largest fiber cable producer in Latin America.

For Chinese companies that operate overseas, localization is crucial for success as it leads to a better understanding of local requirements. FiberHome has increased its global presence by localizing in terms of marketing, products and services, human resources and technological and production cooperation.

"We have set up nearly 20 local offices around the world," said Yang Zhaohua, FiberHome's Vice President for global marketing. "About 30 percent of our overseas employees are recruited locally."

Focus on Africa

The rapid growth of the Chinese company in Africa, both organically and through local offices and distributors, is significantly contributing to the continent's development of communications and technology.

"We have built close cooperation with local telecom operators such as Ethio Telecom (ETC), Ethiopia's integrated telecommunications services provider, and Backbone Connectivity Network (Nigeria) Ltd. (BCN), and customers are now familiar with our products and services," said Li Guangcheng. FiberHome ranks among the mainstream equipment vendors in Africa.

In 2004, BCN entered into a technical partnership with FiberHome to roll out a fiber optic network countrywide. In 2006, in partnership with ETC, FiberHome constructed the first metro optical network in Ethiopia and provided high-end optical networking equipment, FonsWeaver780 and Citrans550. It boosted communication resources and improved the quality of communications. The same year, FiberHome supplied Algeria with more than 100,000 core km of high-quality fiber optic cable, which was then China's single largest contract project in the export of optical cable.

FiberHome is also committed to train African technical workers. In 2010, it designed cables for Angola Telecom, which have been used in the provincial core network construction of the country, and followed it up by providing a free training program for Angola Telecom's staff. It then offered advanced fiber optic cable engineering instrumentation to enhance the staff's capacities in engineering construction, operation and maintenance. Angola Telecom executives spoke highly of FiberHome, saying it showed corporate social responsibility through the content-rich training.

Company Profile: FiberHome Technologies Group

The FiberHome Technologies Group, located in Wuhan Optics Valley of China, is the top product and solution provider in China in the field of information and communications.

Established in 1974, it was preceded by the Wuhan Research Institute of Post and Telecommunications.

Through intensive development for over 40 years, its activities now extend to four major industries: optical fiber communications, data networking communications, wireless communications and intelligentizing applications. FiberHome Technologies is a global supplier for end-to-end solutions with optoelectronic devices, optical fiber and cable, and optical communication systems.

(Source: www.fiberhomegroup.com)

Company Profile