Why Fibre Optic Prices Are Rising Globally and Why We Are Not Passing It On

Something unusual is happening in the fibre optic market right now. Prices have shot up dramatically and the reason might surprise you. It is not just about infrastructure demand. It is about war.

Here is a plain-English breakdown of what is going on, why it matters, and what Telcomates is doing about it.

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Drones Are Now Using Fibre Optic Cable

In the Russia-Ukraine war, both sides have been flying FPV (first-person view) drones to hit targets. These drones traditionally used radio signals but radio signals can be jammed.

The solution? Connect the drone to the operator with a physical fibre optic cable that unspools during flight. No radio signal means no jamming. The drone becomes virtually impossible to stop electronically.

 

A fibre-optic FPV drone with its cable spool payload, as seen at a defence technology expo. Each drone carries kilometres of fibre optic cable that is left behind after a single-use mission.

These drones carry a spool of fibre optic cable underneath the airframe that can stretch 10 to 50 kilometres. After the mission, the cable is abandoned in the field. Every single drone consumes kilometres of fibre.

Ukraine alone was deploying over 50,000 fibre-optic drones per month at peak. Add Russia's equivalent demand and you have two militaries burning through fibre cable faster than the global industry can produce it.

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What This Has Done to Prices

The fibre optic market was not built for this. The G.657.A2-grade fibre used in these drones was a niche product before the conflict. Now everyone wants it and there is not enough to go around.

Chinese suppliers (who make most of the world's fibre) started raising prices mid-contract. One Ukrainian drone maker reported agreeing a price of $5/km and paying upfront, then being told the new price was $25/km before delivery. (Source: Oboronka / Ukrainian Defence Analysis)

On top of military demand, the global AI data centre build-out is consuming enormous quantities of fibre for high-speed networking. Both forces hit the market at the same time. The result is a sustained, global shortage.

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Why Supply Cannot Just Catch Up

Building a new fibre manufacturing plant takes around $60 million and at least 2 years to reach full production. The market cannot snap to attention overnight.

Russia's only domestic fibre factory in Saransk was knocked offline by Ukrainian strikes in mid-2025 and still has not restarted. Russia now buys almost 10% of the world's entire fibre output from China, up from under 1% before the war. (Source: The Moscow Times, Feb 2026)

This technology is also spreading beyond Ukraine. Fibre-optic drones have now been used in Mali and Myanmar, and NATO named countering them as its top innovation challenge in 2025. (Source: Lowy Institute; Atlantic Council)

• Russia consumed around 60 million km of fibre in 2025 alone
• Ukraine had over 80 approved fibre-optic drone models in production by mid-2025
• Prototype ranges now exceed 41 km per spool
• 50 km spools are currently under testing

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What This Means for You

If you are an NBN tech, Telstra or Optus contractor, or a trade customer buying fibre, your regular suppliers may already be passing these increases on. Lead times from manufacturers are stretching. Stock that was available last quarter is getting harder to find.

Distributors who did not plan ahead are facing a hard choice: absorb the hit or raise prices. Many are choosing to raise prices.

Shop our fibre optic range: Telcomates Fibre Optic Patch Cords and Cables ›

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The Bottom Line

• Fibre optic cable is now a key military material, consumed at huge scale in active war zones
• Prices have risen 5 to 7 times in some markets over the past 12 months
• The shortage is structural and new factories take years and tens of millions to build
• AI infrastructure demand is adding further pressure on the same supply chains
• Telcomates is not passing these increases on to our trade customers

If you have questions about stock availability or upcoming orders, get in touch with us here. We are always happy to talk through what we have and what is coming.