News: 1698228197

  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

UK to crack down on imported Chinese optical fiber cables

(2023/10/25)


The UK is cracking down on Chinese imports to protect its optical fiber cable market, which translated to a length of approximately "5.7 million kilometers" in 2021 alone.

It's bad news for importers of optical fiber cable from China specifically, with upcoming trade "remedy measures" to be imposed including new anti-dumping duties that range from 23 percent to 46.2 percent, and new countervailing duties ranging from 10.62 percent to 11.79 percent.

Britain's Trade Remedies Authority (TRA) estimates the UK's domestic product is worth £88 million ($107 million) to the economy annually. The country made the move on the advice of the TRA, which estimates UK-made optical fiber amounts to about half of all the country's consumption, with the rest of the market supplied by imports from China, India, the US, Poland, and Germany.

[1]

The TRA had [2]been investigating single-mode optical fiber cables sourced from China since last year. The probe looked into whether imports of these products were dumped in the UK at prices below what they would sell for in their home country, and if they were sold at unfair prices due to subsidies in two separate cases ( [3]AD0021 and [4]AS0022 ).

[5]

[6]

The local industry alleged in its submissions that Chinese producers were the "main drivers for exercising downward price pressure during tender proceedings and that, even if they are not ultimately selected, they nevertheless force the UK industry to significantly decrease their prices to unsustainable levels."

Interestingly, an application for one of the investigations that prompted the probe was [7]filed by an outfit called Prysmian Group, which supplies fiber-optic cable to Openreach, BT Group's infrastructure subsidiary. Prysmian inked a [8]three-year contract [PDF] with Openreach in 2021.

[9]

The report noted that Prysmian has a significant presence in the UK industry. Not only was it the only UK producer of optical fiber cable to support the application, it is also behind "at least 25 percent of the total production in the UK of the like goods," meaning the government accepted it was made "by or on behalf of a UK industry."

[10]Progress towards 'Gigabit Europe' is slow, with UK also lagging

[11]Clingy Virgin Media won't let us leave, customers complain

[12]Brit broadband subscribers caught between crappy connections and price hikes

[13]EE touts next-gen broadband Smart Hub with Wi-Fi 7 for 2024

Announcing the measures, the TRA said the UK market in optical fiber cable is expected to grow over the next five years, driven by network upgrades as the public demands better broadband as well as by the government's investment in broadband infrastructure, including Project Gigabit.

On the subject of Project Gigabit, as we [14]pointed out yesterday, the UK public's take-up rate, meaning the proportion of households within the fiber network range who have actually hooked up to fiber services, is relatively low at 20.5 percent. As a result, network intelligence outfit Ookla has called for a "required industry focus on selling fiber subscriptions."

Virgin Media, Sky, and other internet service providers are also investing in optical fiber infrastructure – with Virgin Media O2, the offspring of Liberty Global and Telefónica, [15]moving across to an all-fiber network approach. The company said back in [16]2021 that it planned to overbuild "the vast majority" of its infrastructure with fiber to the premises by 2028, although it also continued work on its concurrent gigabit upgrade of its DOCSIS 3.1 HFC infrastructure.

We've asked Openreach and Virgin Media O2 if they expect the market moves will impact their bottom lines. ®

Get our [17]Tech Resources



[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZTk7pqyRLyQUDReXtDK1IgAAAFI&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[2] https://www.trade-remedies.service.gov.uk/public/case/AS0022/submission/6d341560-c127-45dd-8834-77d395b12295/

[3] https://www.trade-remedies.service.gov.uk/public/case/AD0021/submission/22ecbd1e-0037-4982-a494-a452a844164a/

[4] https://www.trade-remedies.service.gov.uk/public/case/AS0022/

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZTk7pqyRLyQUDReXtDK1IgAAAFI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZTk7pqyRLyQUDReXtDK1IgAAAFI&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[7] https://www.trade-remedies.service.gov.uk/public/case/AD0021/submission/22ecbd1e-0037-4982-a494-a452a844164a/

[8] https://www.prysmiangroup.com/sites/default/files/corporate/media/downloads/pdf/press-releases/PR_Prysmian_Group_Openreach_Stonehaven_ENG.pdf

[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZTk7pqyRLyQUDReXtDK1IgAAAFI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[10] https://www.theregister.com/2023/10/24/progress_towards_gigabit_europe_report/

[11] https://www.theregister.com/2023/07/13/virgin_media_ofcom_investigation/

[12] https://www.theregister.com/2023/07/05/which_broadband_survey/

[13] https://www.theregister.com/2023/09/21/ee_touts_nextgen_broadband_smart/

[14] https://www.theregister.com/2023/10/24/progress_towards_gigabit_europe_report/

[15] https://news.virginmediao2.co.uk/wp-content/uploads/2021/07/VMO2-Q2-2021-Earnings-Release-FINAL-1.pdf

[16] https://www.theregister.com/2021/05/14/108m_uk_homes_gigabit_capable/

[17] https://whitepapers.theregister.com/



What?

Mishak

No "security reasons"?

Re: What?

b0llchit

Yeah, too transparent?

Re: What?

Bitsminer

Or too thin.

Re: What?

katrinab

Don't think a piece of glass presents any security issues, though of course that won't stop them trying to claim it anyway.

Re: What?

Anonymous Coward

what d'you mean 'no security issues'?! THINK OF THE CHILDREN!

deevee

Sounds like some UK fibre company has paid off a government official "protection money"...

sanmigueelbeer

Yes, it's called "tax".

Nobody buying their wares, the less taxes they paid.

martinusher

a) Companies don't exist to pay taxes -- "they have accountants for that".

b) The British company suffering from competition is quite likely to be the British arm of a multinational company.

Jellied Eel

Sounds like some UK fibre company has paid off a government official "protection money"...

Sounds like normal trade stuff. China can probably produce SMF for much less than we can. That's business. China could be 'dumping' by subsidising Chinese companies in some fashion, which is also business, just a lil more shadey. Chinese companies could be selling below cost to eliminate competition, which is also business. Other countries may be doing the same, eg Alcatel, Corning etc.

But now to make heads explode

Since Brexit, the UK has gained the ability to be more creative with tariffs, trade rules and subsidies, which were previously exclusive EU (in)competencies. So the EU may previously have protected the French fibre producers at the expense of the UK. Now, the UK can act in it's own interests. We used to have more fibre providers, ie companies like Pirelli and a JV between BT and HP that used to hang out in Martlesham. Kinda lost track of what happened to those, or the fibre parts, but at least we still have the likes of Southampton Uni who abuse photons and fibres in interesting ways.

Doctor Syntax

"So the EU may previously have protected the French fibre producers at the expense of the UK."

How?

Jellied Eel

How?

Alcatel's always been a bit French, and often very diversifed, so making everything from fibre to rail rolling stock. But now part of Nokia, one of those companies that stands to benefit greatly from the EU's ban on Huawei kit.

elsergiovolador

Now, the UK can act in it's own interests.

By having more expensive fibre? Talk about "cutting off one's nose to spite one's face".

If we can't make it cheaper than a competition, then perhaps we should focus on finding advantages somewhere else and in the meantime enjoy cheap fibre at the expense of Chinese tax payer.

Jellied Eel

By having more expensive fibre? Talk about "cutting off one's nose to spite one's face".

Simple really. Do what we're doing and investigating a trade dispute, then maybe applying tariffs. Then could subsidise UK manufacturers without falling foul of EU state aid rules.

Only cheaper for the buyer

Missing Semicolon

... more expensive for the rest of us, as the jobs disappear.

It's not inefficiency if the local businesses die because they are effectively competing against the bottomless treasury of a foreign government.

Re: Only cheaper for the buyer

Yet Another Anonymous coward

Although this is a small case. Imagine the £bn saved when the government buys all its software and computer systems from small UK suppliers instead of giant US firms

Re: Only cheaper for the buyer

elsergiovolador

from small UK suppliers

Killed by IR35, red tape and taxes.

Re: Only cheaper for the buyer

martinusher

Its not a "bottomless Treasury of a foreign government" that's the problem. China not only has a large domestic market -- the country is the size of Europe and has five times the population of the US -- but there's also the whole "rest of the world" to bolster their market.

The UK is an insignificant customer. (Even Europe is a bit iffy because the EU is primarily protectionist -- it only invokes competition laws when its sizing up a member's market but internally its a bit of a non-competitive racket.)

Roland6

>If we can't make it cheaper than a competition...

So you want to be paid the same and work as many hours as a Chinese taxpayer...

zuckzuckgo

>Sounds like some UK fibre company has paid off a government official "protection money"...

One could say they are full of sh*t, so maybe the extra fibre will actually help.

A Non e-mouse

According to Wikipedia the UK economy is around £3 trillion. Is that £88 million going to make much of a dent?

Doctor Syntax

It is if you're a company producing optical fibre in the UK.

Yet Another Anonymous coward

Or Yorkshire tea trying to compete with India and China

Roland6

Don't knock it, remember Liz Truss et al got very excited about their new scotch whisky (£88m) and pork belly (£214m) trade deal with China a couple of years back.

Yet Another Anonymous coward

Did any of that actually materialise ?

Stop subsidised imports from one country and it's an "anti-dumping crackdown"

Howard Sway

Allow subsidised imports from another and it's a "world leading post-Brexit trade deal"

Incoherent, reactive protectionism is such fun isn't it?

Re: Stop subsidised imports from one country and it's an "anti-dumping crackdown"

elsergiovolador

"anti-dumping crackdown"

Funny how it doesn't work when it comes to labour. Home Office allows businesses to import workers and pay them substantially below the market rates under guise of faux labour shortages.

Re: under guise of faux labour shortages

Anonymous Coward

labour shortages are not 'faux', they're real. Trouble is, local folks don't want to be paid rates that the British businesses paid those (...) foreigners. And don't blame the government either, it's the Great British Public that voted in the referendum.

Anonymous Coward

Prysmian were also on the verge of bankruptcy regarding unreliability of certain installations. They've been in profit warning state or close to it for years over such risks.

There are of course strategic reasons to have our manufacturers in Europe rather than full reliance on China; but we can never compete on labour costs here short of slapping up trade barriers. And that's exactly what we are doing here.

There are other Chinesium products on the market in other sectors that Prysmian supplies; and our experience to date is that they are of poor quality. Stamping them out cheap is all well and good, but they will also be short lived. If you're happy with that, that's OK. It's generally a false economy though when considering the kinds of multi-BN $ projects we're talking about to have to re-do them twice as often.

Other experiences I can allude to are the *blatant* "loss of documentation" for folks visiting China while certain trade disputes were open, effectively making those people into a form commercialised hostages.

They do not deserve the business in China no matter how cheap. The issue is of course, how to avoid.

Jellied Eel

Prysmian were also on the verge of bankruptcy regarding unreliability of certain installations. They've been in profit warning state or close to it for years over such risks.

Or from reading through one of the determination docs, they got caught in a price fixing cartel for power cables. Also, that's where Pirelli cables ended up! Or as we used to say, "Pirelli? Focom!" Plus it looked like they got Goldman Sachs'd a while back, and the vampire squid did the usual and loaded them up with debt. But..

BT has therefore been deemed a non-cooperative party, pursuant to regulation 49 of the Regulations

BT non-cooperative? Who knew?

G3.5 Energy costs

Prysmian made this a thing, but didn't seem like it was much of a thing. Sure PRC's energy is a lot cheaper than the UK, but apparently only accounted for 2% of the cost. This is probably more of a thing-

https://en.wikipedia.org/wiki/Prysmian_Group

By 2022, Prysmian has planned to invest around EUR 450 million to net-zero the Group's CO2 emissions and improve the sustainability of its supply chain. An ambitious commitment, aligned with the objectives of the Paris Agreement, which would be executed with support from the non-profit organisation Carbon Trust.

For 'support', read 'invoices'. But Prysmian's competitors aren't likely to choose to pay an idiot tax to a quango and license the right to use the CT's "PAS 2050" logo. But such is politics, and why stuff here tends to end up more expensive than the PRC.. On which point, labour costs..

"this equates to approximately 144 USD a month. monthly average minimum income in the Republic of Türkiye was approximately 470 USD a month."

Which is quite a lot higher than the UK's minimum wage. Doc also went over other possible subsidies like land costs, which seem to be fairly common bungs, eg cheap land in exchange for your factory here!, along with other government incentives for things like Gigabit broadband. UK and China are both doing this, but China's quite a bit bigger and thus needs a lot more fibre. In the end, it still determined there was dumping, but kinda suspect that was more a result of running up inventory and some of China's broadband rollout being delayed by the cough.

Also interesting to note the number of correspondents that didn't.. Which I guess is fairly typical. Zero respondents to the public consultation, and most companies ignored the questionnaires that were sent out.

"a length of approximately "5.7 million kilometers" in 2021 alone."

Roland6

Given the article implies this is less than 50% of the UK's annual consumption of fiber, that is a lot of fiber being installed in the UK, every year.

I wonder if this is really the government protecting an industry, or just wanting to be seen to protect an industry because at some point in the near future, the UK's consumption is going to fall off the cliff.

Re: "a length of approximately "5.7 million kilometers" in 2021 alone."

Yet Another Anonymous coward

We aren't in the Eu anymore - That's 28.5 Million furlongs !

Yours in green ink

Disgusted , Tunbridge Wells

I'm prettyu sure they actually claimed

Anonymous Coward

"5.7 million kilometres of fibre"

***** BRING DABBSY BACK *****

Re: I'm prettyu sure they actually claimed

ChrisElvidge

That's a lot of All-Bran

Isn't more fibre meant to be good for us?

Hmm, fibre underscored as bad spelling even thought language is set to en-GB

Martin Summers

"As a result, network intelligence outfit Ookla has called for a "required industry focus on selling fiber subscriptions." "

Which is neither helpful, or any of Ooklas business to say. Their market is speed tests and letting people flex, which they will do more when they have fast fibre. So that's how they will benefit from the ad revenue, otherwise they can keep their nose out.

Not sure why Ookla are even mentioned in this article. If fibre subscriptions are available to sell then do they really think the industry aren't going to sell them?

Yet Another Anonymous coward

Fiber subscription is a good idea, I don't want to have to keep going out to buy new fiber.

I want a month's worth of fiber delivered every month, ideally in a range of new flavours

An interesting place just east of Harlow

Johnb89

Meanwhile, the place where they invented this stuff (Nobel prize winners etc) is now an office park on the east side of Harlow, Essex.

See https://en.wikipedia.org/wiki/Standard_Telecommunication_Laboratories and Kaopark Harlow -https://www.google.co.uk/maps/place/Kao+Park/@51.770534,0.1258598,17z/

Something else that is going to cost more and be in short supply.

Tron

Like food, medicine, staff, and, well, pretty much everything.

I think the Tories are absolutely determined to break everything before they get kicked out and into 6th place in the next election. A scorched earth policy. Labour might win, but they will inherit a third world country with bankrupt local authorities, broken supply chains, a trashed currency, and a beggared people. People who all hate the government, and will continue to do so. Because Britain is no longer fixable.

Re: Something else that is going to cost more and be in short supply.

Anonymous Coward

Fortunately the other Conservative party is going to win the next election and carry on in exactly the same manner

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