In response to complaints from domestic producers, this time about imports from the Indian market, the European Commission took decisive action against the import of fiber optic cables from India. After a thorough investigation, Brussels imposed preliminary anti-dumping duties in 2024. The investigation, conducted for over a year and despite numerous appeals by Indian producers, revealed that Indian cables were being sold on the EU market at depressed prices, i.e., significantly below production costs or selling prices in the Indian domestic market (taking into account delivery costs to Europe, distribution margins, and other factors considered in the analytical model). This practice, further supported by government subsidies, allowed Indian companies to aggressively acquire market share in Europe, directly threatening the financial stability of EU producers. Only HFCL defended itself against allegations of undercutting prices relative to the domestic market and was not subject to countermeasures.
In the second step, the European Commission investigated the level of production subsidies from state funds and ultimately, Commission Implementing Regulation (EU) 2025/1985 introduced definitive anti-dumping and countervailing duties on Indian optical fibre cables, differentiating rates depending on the manufacturer and capital group.
The introduced measures are to be valid for five years (until 2031), with the possibility of their extension after another market review. Producers also have the possibility to trigger a review procedure in the event of special circumstances confirming the disappearance of the infringement of the EU market.
The table below presents the revised definitive anti-dumping (AD) and countervailing duty (AS/CVD) rates imposed by the European Commission on fiber optic cables from India. The data reflects the adjustments introduced by Implementing Regulation (EU) 2025/1985 of October 2025.
| Vendor / capital group | Anti-dumping tarrifs (AD) | Anti-subsidy tarrifs (AS) | Total new tarrif | TARIC code |
|---|---|---|---|---|
| Birla Cable / Universal Cables / Vindhya Telelinks | 2,9% | 5,4% | 8,3% | 89CF |
| Sterlite Technologies (STL) | 8,8% | 3,7% | 12,5% | 89CG |
| HFCL Limited / HTL Limited | 0% | 8,1% | 8,1% | 89CH |
| Other cooperating companies | 4,4% | 5,8% | 10,2% | – |
| All other Indian vendors | 4,5% | 8,1% | 12,6% | C999 |
The impact of new tariffs on the CAPEX cost of network
The introduction of tariffs on cables from India will change the cost structure of FTTH (Fiber to the Home) network construction, especially when combined with the constraints of the Chinese market, which has been subject to even stricter restrictions for several years. Fiber optic cable typically accounts for 10% to 15% of the total material costs of network construction (other costs include hardware, HDPE pipes, and, above all, labor, which consumes up to 70-80% of the investment budget). Therefore, an increase in the price of Indian cables from +8% to +12.6% could translate into an increase of approximately 1-2% of the investor’s total materials budget.
- lesser of two evils: despite the imposition of tariffs, Indian cables (e.g., from STL or HFCL) remain the most attractively priced alternative to cables manufactured in Europe. The difference in base price between India and Europe often exceeds 15-30%, so a 10% tariff still makes importing from India profitable.
- budget predictability: introduction of final tariffs on India in 2025 ends a period of uncertainty. Investors can now precisely estimate costs, which is crucial for subsidized projects (e.g., from the KPO or FERC in Poland).
- further pressure on European producers: while tariffs protect European companies, the tariffs for India are so low that they don’t guarantee a full return of production to Europe. Rather, they encourage diversification of supply and search for savings in logistics.
Conculsions
Tariffs on India are noticeable for customers, but they shouldn’t drastically impact the profitability of FTTH projects like the Chinese tariffs. Investing in an Indian cable with a 10% tariff is still typically cheaper than purchasing a similar product from a European Union manufacturer.
The good news for European production is that with such low tariffs, many Indian producers have abandoned plans to move production to Europe (only Sterlite currently has a factory in Italy, but it purchased it before the EU proceedings began).
Another issue is that several Chinese manufacturers have announced or are currently implementing similar investments in factories in Poland and Europe. In this case, we expect significant price pressure and, as a result of the European Commission’s actions, a completely counterproductive effect on the domestic market. However, this will undoubtedly benefit end customers implementing broadband projects, who will receive competitive prices and significantly improved availability thanks to shorter delivery times. A side effect will be that Poland is gradually becoming a hub for fiber-optic cable factories (12-13 plants of varying sizes).
