BEIJING, May 18 /Xinhua-PRNewswire/ -- CCID Consulting (Hong Kong Stock Exchange: 8235), China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong, today released through its Communications Industry Research Center the latest analysis report on China's Router Market in 2007Q1. The report shows that the market grew fast in 2007Q1. Shipment reached 88,300 sets, up by 11.1% year-on-year.
According to the report, in 2007Q1, telecom operators continued to deepen their MAN reconstruction and sped up IP network building. This drives up the growth of the high-end router market. Sales volume was up by 8% year-on-year. Meanwhile, as industry information system building entered a substantive stage, the accelerating growth of industry-specific markets resulted in an 11.2% year-on-year growth in the shipment of low- and middle-end routers.
For "Fig. 1: Year-on-Year Growth of China's Router Market in 2006Q1 and 2007Q1", please refer to http://www.ccidconsulting.com/upload/11520.jpg
http:/ (Source: CCID Consulting, April 2007)
In terms of industry market structure, telecom operators' demand for IP MAN building has driven up fast market growth in the telecom industry. Meanwhile, the government, education, energy and financial sectors are still the major customers in router sales. As their IT applications gather pace, SMBs will get a greater share of the vertical markets.
For "Fig. 2: Changes in Vertical markets in 2006Q1 and 2007Q1", please refer to
http://www.ccidconsulting.com/upload/11521.jpg . (Source: CCID Consulting, April 2007)
Regionally, with the gradual start of MAN in central China, a big demand for high-end routers has risen. Driven by industry information system building, East China and South China have become regional market growth points.
In terms of development trend, IP-based networks have now become a very notable trend. Total IP carrying has become the future network development direction. This will greatly drive up the growth of the router, particularly high-end router market. Based on their identification of this market prospect, equipment makers all pay high attention to R&D inputs and market expansion in this field. Domestic vendors like Huawei and ZTE have both reached the telecom-level network requirements in terms of R&D strength, product performances and actual networking ability.
This February, Huawei completed the smooth switchover of voice IP networks at Shaanxi Mobile's soft switching end office, making the leap forward from mobile core networks to "total IP". Adopting Huawei's total IP soft switching commercial solution, Shaanxi Mobile has fully brought the quality of its services carried in IP to the telecom operation standard. In 2007Q2, Huawei will also start nationwide tour exhibition activities called "IP Road - China Tour. It will then exhibit to domestic operators its solid technical strength in the field.
In March 2007, ZTE's high-end router products successfully passed MFA's (MPLS & Frame Association Forum) MPLS interconnection test. In the test, ZTE's routers showed stable and outstanding performance. After the test, ZTE took its high-end routers to exhibit at the 2007 MPLS World Congress in Paris and networked them with other equipment from the industry. In the event, ZTE successfully demonstrated IPTV services transmission through MPLS technology. This shows that ZTE's router products have reached the advanced level in the world.
With 3G network building and IP network construction, CCID Consulting forecasts that China's router product market will continue to maintain a fast growth momentum in 2007Q2.
About CCID Consulting
CCID Consulting Co., Ltd. (also 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 a direct affiliate of the 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 and 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 is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
Based on four major competitive areas of the powerful data channels, industrial resources, intense knowledge and deep understanding 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. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.
CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com/.
