Financial Times notes that users are facing a shortage of fiber optic cable. This crisis has been caused by the increase in prices in critical componentsspecifically, silicon tetrachloride (50% increase) and helium (135% increase due to the closure of production plants in Russia and the United States).The demand for connections and the shortage of components are essential factors that cause the rise in prices and an impact on global connectivity. Financial Times indicates that Cru Group (market research company) estimates an increase in the consumption of fiber optic cable by 8.1% during the first half of 2022.
Some companies like Microsoft, Google or Amazon want to expand their data centers, but in the meantime, governments want to speed up the deployment of 5G in their countries (the problem is that the fiber optic kilometer went from 3.62 euros to 6.16 euros).Corning or STL (manufacturers of this component) prioritize their most important customers, although unfortunately, medium and small companies will be affected by the delays in delivery times (from 20 weeks to a year).The losers will be Europe, China and India, therefore, they would have to delay their cloud-based services and connectivity plans. Michael Finch (Cru analyst) revealed that there are doubts about the possible fulfillment of the objectives established for the construction of infrastructures and submarine cables. Sign up for our newsletter and receive the latest technology news in your email.