CCID Consulting has reported that about 208,000 sets of communication power supplies were sold in China in 1H 2007, generating sales revenues of over $300 million. Of this figure, $173.8 million was recorded Q2, up 37.5 percent over Q1's $126.4 million.

Primary drivers for this growth were the renewal of telecom operation networks and pilot procurement of 3G equipment in the country, said CCID in the report "3G Drives Forward China's Communication Power Supply Market."

Regionally, East China has become the center of communication power supply consumption in China. The regions of East China, North China and South China took the lead over other regions to become the consumption engine in the country.

Despite their fast growth, Northeast China, Central China, Northwest China and Southwest China are still behind national average growth due to the level of local economic development and the degree of telecom network penetration in the areas. According to CCID, this situation is expected to continue to exist in the short term.

CCID is optimistic that due to the collective procurements of communication equipment, China's communication power supply market will have a more favorable external environment and there will be major progress in important technologies. This will greatly drive China's communication power supply market, added CCID.