On 4 September 2026, the awards for the China Mobile 2026/2027 optical cable tender were announced. The loose tube optical cable tender has a total volume of 69.2M F-km. This announcement followed the re-issuance of the tender on 10 August, after an initial attempt on 8 July failed to attract enough bids from producers due to an unattractive offering, with the derived fibre price capped at around RMB71 /F-km (incl. VAT), notably lower than spot market prices.
In the re-tender process, the derived fibre price cap increased to approximately RMB81 /F-km (incl. VAT). The minimum number of successful bidders was also relaxed to one, from six in the first failed tender, making it theoretically possible for a single supplier to bid and potentially win the entire volume. We understand that eventually 25 qualified bids were submitted, and 18 companies were ultimately awarded contracts.
The global fibre supply-demand landscape shifted markedly in 2026. A surge in demand from emerging applications, particularly AI data centres and fibre-optic drones, pushed the China optical cable market into a state of severe tightness and drove prices significantly higher. Consequently, China Mobile reissued its tender with successively higher cap prices to secure the required volume, which is an unprecedented development.
The tender volume is lower than the 98.84 M F-km offered in the 2025/2026 cycle. However, this should not be interpreted as a structural decline in carrier demand, as the planned execution period has also been reduced from 12 months to nine months. This smaller volume mainly reflects China Mobile’s more cautious approach, focusing on essential near-term projects – a direct response to the elevated fibre prices amid global supply shortages.
Out of the 18 successful bidders, 17 submitted bids at the tender's maximum cap of RMB7,099.8 million. The sole exception, Ningbo Yuda, offered only a marginal 0.1% discount. This near-uniform bidding pattern is a clear reflection of the prevailing market tightness.
Furthermore, CRU’s market intelligence indicates that the winning bidders actually committed only 35.22M F-km of supply to China Mobile – a significant shortfall from the required total 69.22M F-km. This was not the result of deliberate volume control by China Mobile, but rather it represented the maximum volume suppliers could currently offer amid severe market tightness and to balance their existing supply commitments to other customers.
As in previous years, the 'Big-4' – YOFC, Hengtong, ZTT, and FiberHome – remained the top four winners, collectively securing a 38.8% share of China Mobile’s 2026/2027 optical cable tender. This result reaffirms their leading position in China’s optical cable market. However, their combined share fell significantly from the 60% secured in the 2025/2026 cycle. In this 2026/2027 tender, all four companies bid at the maximum value cap, and their awarded shares were closely clustered.
The absolute volumes won by each of the 'Big-4' players are therefore significantly smaller than in most historical tenders, reflecting both the reduced total tender size and their lower individual shares. CRU understands this outcome may actually provide some strategic relief for these companies. All of them are facing tremendous supply pressure from downstream customers across multiple sectors, and a smaller commitment to China Mobile should help them better balance production schedules and manage their broader supply obligations.
Interestingly, Hangzhou Futong secured the fifth-largest allocation in this tender, increasing from 3.33% in the 2025/2026 tender cycle. This signals the company's continued commitment to the domestic carrier market, along with its ongoing effort to recover from challenges faced in recent years.
Other successful bidders included regular winners such as Hongan Group, Jiangsu Yongding (Etern), Shenzhen SDGI, Zhejiang Fuchunjiang, and Jiangsu Nanfang. In a noteworthy development, Tongding also returned to the winners' list after being absent from the previous two China Mobile tenders. Furthermore, expanding the maximum number of approved bidders to 18 also allowed several less frequent winners, including Ningbo Yuda, Sichuan Lefei and Nanjing Huamai, to secure contracts this time.
Indeed, if affiliated companies – such as Shantou Aoxing (affiliated with YOFC), Sichuan Lefei (affiliated with YOFC), Xi’an FXOC (affiliated with Hengtong), Nanjing Huamai (affiliated with Hengtong), Sichuan Tianfu (affiliated with ZTT), and Nanjing Huaxin Fujikura (affiliated with FiberHome) – are also included, China’s ‘Big-4’ players have secured as much as 64.62% of China Mobile’s total tendered volume. This, however, represents a slight decline from the 77.09% they collectively secured in the last 2025/2026 tender. Crucially, the winning optical cable prices were nearly identical across all successful bidders – the ‘Big-4’, their affiliates, and independent firms alike. This uniform, cap-level winning pricing is a clear indicator of the tight market conditions discussed previously.
Implied fibre prices surged to approximately $10.66 /F-km
This China Mobile tender's average optical cable price settled at the near-uniform cap of RMB115.90 /F-km (incl. VAT), or $15.26 /F-km (excl. VAT). This represents a dramatic 115.2% increase compared to the previous tender cycle.
As discussed, this price surge reflects a reversal in supply-demand dynamics, driven by soaring demand from emerging applications. Suppliers have consequently shifted part of their focus away from the traditional carrier market, strengthening their bargaining position under the new market conditions. This newfound leverage gave suppliers the confidence to bid almost uniformly at the tender's maximum price cap.
While translating cable tender prices into a bare fibre equivalent price is challenging, the outcome suggests an implied fibre price of approximately RMB81.0 /F-km (incl. VAT), or $10.66 /F-km (excl. VAT). This represents a staggering 329.8% increase compared to the implied fibre price in the 2025/2026 tender.
However, despite this increase, CRU’s assessment shows that Chinese spot prices for G.652.D fibre have risen even further over this period. Spot prices in August stood at RMB96.8 /F-km (incl. VAT), or $12.75 /F-km (excl. VAT), meaning China Mobile’s implied fibre price remains at a discount to domestic spot levels.
Nevertheless, the relatively narrow gap indicates that China Mobile – the world’s largest single optical cable consumer – has largely accepted the new market dynamics. By securing a deal near the domestic spot price range, the tender outcome effectively underpins and validates the current elevated price structure.
With China Mobile tender setting a new price benchmark for China’s carrier sector, attention now turns to China Telecom. According to CRU’s market intelligence, the carrier is expected to relaunch its main centralised optical cable tender later this month or next, following its failed attempt last month, despite some China Telecom volume having already been procured through various provincial tenders earlier this year. CRU anticipates this new tender to total around 20M F-km, matching the volume of the previous unsuccessful tender.
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