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CCID Consulting: Sales of China’s Communications Equipment Remains Stable in 2007Q3

2007-12-03 19:00 775

Sales Volume of Equipment Reaches 71 Thousand with Sales Revenue Reaches 960 Million RMB

BEIJING, Dec. 3 /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), recently released an article on China’s communications equipment market in 2007Q3.

Telecom Power Supply Market Conformed to Industrial Fluctuant Trend in 2007Q3

There are four major factors behind the telecom power supply market in 2007: TD-SCDMA going to commercial use, 2G expansion, service outsourcing and the breakthrough of abroad scale. Due to seasonal changes in the communications equipment industry, with Q1 and Q3 as low seasons, and Q2 and Q4 as midseasons, telecom power supply also follows a similar seasonal trend. Generally speaking, the sales volume reached 71 thousand sets and sales revenue reached 960 million Yuan in 2007Q3. Both of them descended over 2007Q2.

For more on “The Analysis of China’s Telecom Power Supply Market in 2007”, please visit http://www.ccidconsulting.com/upload/12419.JPG . (Source: Oct. 2007, CCID Consulting)

TD-SCDMA Commercial Experimental Network Brings Energy for the Telecom Supply Power

Telecom power supply is the key infrastructure for communications network. Buyers include not only telecom operators, but also telecom equipment manufactures. China’s TD-SCDMA commercial network would speed up the explosion of the telecom supply power market. In the early 2007, China Mobile launched ‘TD-SCDMA commercial experimental network’ in the following eight cities: Beijing, Shanghai, Tianjin, Shenyang, Qinhuangdao, Xiamen, Guangzhou and Shenzhen. China Telecom and China Netcom have also begun enlarging TD-SCDMA network capacities, together spending about 1 billion RMB in the field.

China Mobile targets to spend about 24 billions RMB in this public bidding, among which 20 billions would be used for system equipment and 4 billions for TD-SCDMA mobile phone networking. The scale of TD-SCDMA commercial experimental network is almost the same as the initial CDMA2000 network constructed by China Unicom, comprising 15,000 base stations with the network capacity of more than 10,000,000 user lines to support more several millions end users. Among these 15,000 base stations are 8602 outdoor base stations and 3772 indoor distributed system. The planned number of TD-SCDMA base stations amounted 70 percents of GSM base stations in these eight cities, which covers an area of 95 percents of current network.

In Beijing, in order to ensure the availability of 3G services during the Olympic Games, China Mobile targets to build 2059 outdoor base stations and 1015 indoor distributed systems, a portion of 23.94% and 26.91% in this bidding respectively. To avoid interference between different TD-SCDMA experimental networks, networks built by China Netcom would be brought into China Mobile’s TD-SCDMA commercial experimental network.

Launch of 3G Gives New Opportunities to China’s Telecom Power Supply Market

The total number of 3G base stations would total 350,000 in China’s 3G constructions. Taking updating and substitution of existing equipment into account, the telecom power supply market will increase fast in the near future. The average cost of a typical base station is about 860,000 RMB, including the accessory equipment. In general, a base station will company with a suit of telecom power supply. It is obvious that 3G investments will enlarge the demand on the telecom power supply.

According to CCID Consulting, investment on 3G network equipment in the 3 years following the release of 3G license will be 36.36, 33 and 28.77 billions RMB respectively, and the investment on 3G projects will be 80.81, 82.50 and 84.61 billions RMB respectively. The 3G mobile phones market will be 69.3, 87.6 and 96.6 billions RMB. Hence, for telecom equipment manufactures such as ZTE and Emerson, the launch of 3G means not only a bigger market, but also a change in market competition.

Telecom Power Supply Market Brand Keeping Steady

In 2007 Q3, the mainstream manufactures in telecom power supply market remained the same with names such as Emerson, ZTE, Delta-Cimic, DPC and Postel. Emerson kept a leading position in the market because of advanced technologies and good relationship with operators. On the other hand, ZTE achieved good revenue benefiting from its total telecom solutions. Delta-Cimic performed well in R&D, channels and services and better revenues could be expected in Q4. DPC began to turn around to other power supply products and just kept its position in the telecom field. Postel, as a traditional brand in telecom power supply, snatched the fifth position in the market competition and better revenues could also be expected.

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 affiliated to the China Center for Information Industry Development (hereinafter known as "CCID Group"). Headquartered in Beijing, CCID Consulting has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with over 300 professional consultants and industry experts. The company’s business covers over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, the Asia-Pacific region and Europe with 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: powerful data channels, industrial resources, intense knowledge and a deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategic planning, IT applications, marketing strategies, human resources and information technology outsourcing. Customers range from industrial IT users, telecommunications companies, energy companies, finance companies, and automobile companies, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to be the number 1 consultant in strategic consulting, the number 1 brand for strategic consultancy, the number 1 advisor for enterprise management and the number 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

Source: CCID Consulting Co., Ltd.
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