The global sales of telecommunication equipment and fiber optics are divided into four regional markets: Asia Pacific, Americas (Canada, Mexico, US), and Europe (UK, France, Italy). The major drivers of growth are increasing telecommunication networks and governmental focus on LTE and 5G technologies. The Asia Pacific region is the fastest-growing market for telecom equipment, accounting for about 44% of the total market.
The United States and eight other nations have reached an agreement on export controls for telecommunication equipment and fiber optics. The pact would ensure that such technology is not sold to countries near military bases, nuclear reactors or ICBM launching facilities. The agreement also would allow countries to sell their own products to other nations that do not restrict telecommunications exports. In the meantime, a loophole in export controls will allow the United States to sell its own fiber optics and telecommunications equipment to nations around the world.
The US government is trying to boost the economies of former Soviet countries by exporting fiber-optic cables, which can help with long-distance communications. While the Pentagon has long opposed the sale of such equipment to foreign countries, the new rules were pushed by U.S. telecommunications firms and European allies. It also aims to set a strong economic foundation for American business in the region.
The global fiber optics market is segmented based on geography and technology. In terms of technology, the market is segmented by the type of product used, such as cables, connectors, and attenuators. Cables are the main component of the optical fiber connectivity market and are further sub-segmented into modules and enclosures. Cables are mainly used for long-distance data networking and are more susceptible to electromagnetic interference.
In terms of region, the telecom equipment market is divided into five major regions. Asia Pacific comprises China, India, and South Korea, while Americas is composed of US, Canada, and Mexico. Europe is further subdivided into countries such as France, UK, and Italy. Rest-of-World includes the world. North America accounts for the largest percentage of global sales, followed by Europe and Rest-of-World. The market for telecom equipment and fiber optics is driven by growing governmental focus on 5G and LTE technologies.
If you're considering making a purchase of fiber optic cable or other telecommunications equipment, it's important to understand the tax implications. A recent ruling by the Department of Revenue has made this important decision much easier. Although T-Mobile's installations were clearly taxable, the Department of Revenue has narrowed its definition of telecommunications capital equipment. The Department of Revenue considered dark fiber leases as competitive telephone services, and taxed the taxpayer's telecommunications equipment. The taxpayer purchased dark fiber from multiple carriers, lit the fiber with his/her own equipment, and provided telecommunications services to its own customers.
In 1958, the legislature passed RPTL 102(12)(f) to address real property taxation of telecommunication equipment. The legislature was aware of fiber optic technology, but it limited assessment to wire and other property used for electrical conductors, including cable. The statute failed to apply to fiber optic cables and equipment. Although this ruling was overturned by the courts, it demonstrates that the legislature knew about this technology when enacting the tax code.
Doping optical fibers
One important part of modern communications equipment is the use of doped optical fibers. Rare-earth-doped fibers are useful in optical amplifiers and lasers. They can help increase the power of optical signals by compensating for the loss of a fiber. Erbium-doped fibers can also help amplify several optical signals at once. They can be used in combination with WDM technology, too.
One of the most common applications of rare-earth-doped fibers is in the production of lasers. These fibers contain ions of the rare-earth element neodymium, erbium, or holmium. These ions are then integrated into the fiber's glass core matrix, resulting in high absorption of light in the visible and near-infrared spectrum.