CCID Consulting: 3G Promotes Fast Growth in China’s Communication Power Supply Market

BEIJING, Oct. 1 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), releases its article on 3G promoting fast growth in China’s communication power supply market.

In March 2007, China Mobile built their own "TD Trial Commercial Use" networks in 8 cities, namely Beijing, Shanghai, Tianjin, Shenyang, Qinghuangdao, Xiamen, Guangzhou and Shenzhen, marking substantial progress in the development of TD in China. In addition, China Telecom and China Netcom will also extend the capacity of their TD network in Baoding and Qingdao. The two operators may inject one billion Yuan respectively.

China Mobile’s investment is expected to total 24 billion Yuan. Of this, 20 billion Yuan will be spent on system equipment, while 4 billion Yuan will be spent on TD mobile phones. Large-scale 3G developments will take place in 2008 and 2009. The scale of the "TD Trial Commercial Use Networks" is similar to that of the C Network developed by China Unicom. Some 15,000 base stations will be deployed, with a network capacity of over 10 million lines. Several million end numbers will be issued.

Among the 15,000 planned base stations, China Mobile plans to build 8,602 outdoor base stations and 3,772 sets of indoor distribution systems among its TD network in the 8 cities. The planned 3G base stations will account for 70% of the existing 2G base stations within eight cities. Urban and suburban coverage will top 95% of the existing networks.

To ensure that 3G services will be available during the Olympic Games, China Mobile plans to build 2,059 TD network outdoor base stations and 1,105 sets of indoor distribution systems, which respectively account for 23.94% and 26.91% of the TD network built in the current phase. To avoid interference between different TD experimental networks, China Netcom’s network in Beijing was included in the last round of TD tests by China Mobile’s "TD Trial Commercial Use Network."

Communication power supply is a key component to the whole communication network. Overall 3G developments will bring about the construction of some 350,000 base stations. Together with the update of existing communication power supplies, China’s communication power supply market will grow fast in the future, 70% of investment in 3G development will be on wireless access networks. The average total investment in a typical base station (including supplementary equipment) will reach 860,000 Yuan. Usually, one base station needs to be supplemented by one set of communication power supply. 3G investments will greatly increase the demand for communication power supply.

Affected by the update of telecom operational networks and 3G procurement, sales volume in 2007H1 totaled 208,000 sets, generating 2.28 billion Yuan in sales revenue. Of this, sales revenue stood at 960 million Yuan in Q1 and 1.32 billion Yuan in Q2, up 37.5% quarter-to-quarter. The growth was mainly affected by 3G piloting use and TD procurement which both took place in Q2. Specific data are given in the following figure and table.

Fig. 1 Communication Power Supply Sales in China in 2007H1

http://www.ccidconsulting.com/upload/12106.jpg

Source: CCID Consulting, July 2007

In 2007H1, -48V products continued to dominate China’s communication power supply market, while +24V products were mainly used in updating equipment. The trend is that the -48V power supply will gradually gain more market share. Affected by the procurements by telecom operators and equipment makers, sales revenue reached 1.95 billion Yuan in 2007H1 while sales volume hit 167,000 sets, far more than the demand for +24V communication power supply.

Table 2 Overview of Communication Power Supply Sales in China in First Half of 2007 -- By Product Type

Type Sales Volume Sales Revenue

-48V 16.7 19.5

+24V 4.1 3.3

Total 20.8 22.8

Source: CCID Consulting, July 2007

CCID Consulting is optimistic about China’s communication power supply market in the second half of 2007. Thanks to the collective procurement of communication equipment, China’s communication power supply market will have a better future. Important progress is also expected to be made in important technical areas. This will greatly push forward the development of China’s communication power supply market.

Fig. 2 Forecast for Communication Power Supply Sales in China in 2007

http://www.ccidconsulting.com/upload/12107.jpg

Source: CCID Consulting, July 2007

About CCID Consulting

CCID Consulting Co., Ltd (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliate to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Harbin, with over 300 professional consultants and industry experts. The company’s business scope has covered over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, Asia-pacific area and Europe, by setting up agents in the U.S, Japan, South Korea, Australia, Singapore, Italy and Russia, along with the aim to be global.

Based on four major competitiveness of the powerful data channels, industrial resources, intensive knowledge and deep understandings of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Her customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits herself to be the NO.1 consultant in strategic consulting, the No.1 Brand for Strategic Consultancy, No. 1 advisor for Enterprise Management and the No. 1 Consultant for Government Decision-making.

For more information, please contact:

Cynthia Liu

Coordinating Manager

CCID Consulting Co., Ltd.

Tel: +86-10-8855-9080

Email: liuyan@ccidconsulting.com