Wireless Communication Equipment
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1 Wireless Communication Equipment Essential sourcing intelligence for buyers China manufacturer profiles Detailed profiles of 16 suppliers with verified manufacturing and export credentials Product & price trends Prices and specifications of 78 top-selling export products January 2010 US$495 Guangdong Wireless communication equipment supply center Supply centers & market trends Coverage of leading and emerging supply centers, plus insight into capacity, output and R&D wwwchinasourcingreportscom
2 EXECUTIVE SUMMARY Wireless Communication Equipment Supplier capability in China Executive Summary Growing 3G adoption worldwide has become the single most important driver of China s wireless communication equipment industry for the past 12 months Because of the steady rise in 3G deployments, most manufacturers survived the economic slowdown and even achieved revenue increases in 2009 With licenses from the government, mobile network operators within the country are rapidly building their 3G networks The expansion of mobile communication, particularly in India, Vietnam, Indonesia, Africa and other developing countries, is also driving growth in certain product segments such as wireless repeaters Aside from 3G, other relatively new and established wireless technologies, including Wi-Fi and WiMAX, are fueling continuous product development in China The following are some of the key trends observed in China s wireless communication equipment industry: Digital technology in wireless repeaters has enabled the integration of digital network services, the adoption of large-scale ICs, and the realization of encryption and computer management on communication networks For commercial applications, production is focused on analog-based models In-vehicle and portable types are popular Solar-powered units and those used for wireless digital broadcasting are also offered For base station and WLAN antennas, the main R&D trend is enhancing ease of installation, resulting in customized designs Suppliers are moving toward miniaturization, which addresses many installation problems Makers are also starting to integrate amplifiers GSM models dominate supply in China s wireless terminals industry because of the popularity of GSM networks in many countries These account for about 75 percent of the line s total production Major players are offering mobile and cordless phones, and data cards as part of the FWT package Among fixed and mobile WiMAX products, the latter is poised to take up most of the output of companies Major players in China are taking the lead in the WiMAX R&D front, closely following international developments Support for the technology is rising among state-owned telecom operators and smaller equipment manufacturers Some companies expect that adoption of WiMAX among equipment providers in China will be faster than the uptake of TD-SCDMA Makers are further emphasizing functionality, product quality and reliability in upgrading their devices and developing new ones This report covers wireless communication products, including base station antennas, WLAN antennas, wireless terminals, wireless repeaters and WiMAX equipment The Industry Overview section discusses developments in China s supply market and suppliers strategies to strengthen their export performance Trends in the line are also discussed in Products & Prices The supplier base in China is composed of a mix of small, midsize and large enterprises with a more intensive technical background than the consumer electronics companies The majority provides products and services to telecom operators, dealers and integrators Guangdong province is the largest wireless communication equipment hub in China It hosts 60 to 80 percent of the country s suppliers who take advantage of the mature supply chains and costefficient industry services in the area Specifically, a large number of manufacturers are based in the cities of Foshan, Shenzhen and Guangzhou In this report 16 in-depth company profiles 78 top-selling export products Supplier demographics Supplier survey Industry statistics & charts METHODOLOGY To produce this report, Global Sources surveyed a wide range of suppliers Rather than focus simply on high-profile makers, we compiled a representative sample of large, midsize and emerging manufacturers All profiled companies are export-oriented professional suppliers that may or may not be clients of Global Sources The selection of suppliers is designed to reflect the composition of the industry in China in terms of geographic spread, business type and company ownership For in-depth company profiles, our research teams interviewed senior executives and export managers who discussed their recent performance and provided price, R&D, production and export forecasts for the next 12 months The interviews were done in person, by phone or In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials, including their production and export statistics, and a breakdown of exports by product type and market Our production checklist details the product-specific manufacturing capability of each supplier All profiled suppliers participated in a survey designed to provide insight into product and price trends, and challenges facing the industry All survey questions are single choice Results were calculated based on the actual number of valid responses to each question wwwchinasourcingreportscom
3 Contents CONTENTS INDUSTRY OVERVIEW 7 Supplier summary Major customers Production & exports Main production centers Supplier demographics Products & prices 11 Export statistics Exporter ranking Supplier survey 15 Export prices, price increase, export sales, target markets, capital expenditure, challenges, export capability, R&D focus SUPPLIER PROFILES 19 Supplier locations Industry composition Exporter ranking Supplier matrix Production checklist Supplier profiles PRODUCT GALLERY 61 Top-selling export products Copyright 2010 Trade Media Limited All rights reserved Reproduction in whole or in part in any form or medium without the expressed, written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited Published by Publishers Representatives Limited (on behalf of Trade Media Limited) 4th Floor, Century Yard, Cricket Square, Elgin Avenue, PO Box SMB, George Town, Grand Cayman, Cayman Islands c/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong ISBN Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed The author and the publisher of this report (and the publisher s affiliates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, Contents ), whether as to the accuracy, completeness, quality, fitness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or deficiency in, or for any use of or reliance on, such Contents (or any portion thereof) All product images are provided by the companies interviewed and are for reference purposes only Those product images featuring products with trademarks, brand names or logos are not intended for sale Products that are not the specific topics of editorial articles are shown for illustrative and/or demonstrative purposes only We, our affiliates, and our affiliates respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party China Sourcing Reports
4 INDUSTRY OVERVIEW Industry overview Growing 3G adoption worldwide has become the most critical technology propelling China s wireless communication equipment industry In 2009, its impact was greatly felt in several segments, including antennas, terminals and repeaters, which otherwise would have suffered decreased exports in the wake of the global economic slowdown Because of the steady rise in 3G deployments and ensuing demand for compatible products, not only did most makers weather the crisis, many even saw revenue climb in 2009 Suppliers became even more optimistic about the industry after the government granted 3G licenses to the country s leading telecom companies, China Mobile, China Unicom and China Telecom, in 1H09 Mobile network operators within the country are rapidly building their 3G networks China Mobile has finished its TD-SCDMA network in 10 cities China Unicom is building a WCDMA network in 55 cities and will be providing 3G services as well These advancements are further encouraging wireless communication equipment suppliers to invest in developing more 3G models In the wireless repeaters line, for instance, makers are planning to raise output for WCDMA and CDMA2000 versions in 2010 as global demand for 2G devices continue to shrink GSM and CDMA types, however, will continue to be the mainstream Growth in this area is driven by the rapid development of mobile communication, particularly in India, Vietnam, Indonesia, Africa and other developing countries Being 10 times cheaper than cellular base stations, telecom carriers find it more costefficient and flexible to invest in the equipment Apart from 3G, other relatively new and established wireless technologies are fueling continuous product development in China For example, 80211n is expected to boost Wi-Fi data rates to between 100 and 300Mbps, and is likely to be a long-lasting standard for several years ahead This is according to Gartner, which has named eight mobile technologies that will evolve through 2010 The report also mentions that although the standard is complex to Supplier summary Suppliers surveyed 16 Export sales $1974mn Export ratio 62% OEM business 48% Capacity utilized 63% Annual R&D spending $303mn Full-time employees 13,008 Data: All surveyed suppliers configure and requires a new powerover-ethernet standard, access points, client wireless interfaces and backbone networks, it enables an all-wireless office through higher data transfer rates The standard also offers better reliability and coverage than predecessors 80211a, 80211b and 80211g It makes use of the multipleinput, multiple-output technology, which enables the existence of several antennas that improve range The standard operates on both 24 and 5GHz frequencies, while 80211a works on 5GHz and 80211b and 80211g support 24GHz Albeit taking off relatively slower than expected several years ago, WiMAX is now breaking into mainstream in some countries In Global Sources online metrics Wireless communication equipment Online metrics are taken from buyer and supplier activity in the featured product group on wwwglobalsourcescom in the month preceding publication of this update Buyer requests track total inquiries from our worldwide community of more than 850,000 buyers Product profiles represent the total number of unique products available from suppliers in our online catalogs New product postings indicate the number of new product profiles added by suppliers during the period Top buyer requests Top product profiles Top new product postings Fixed wireless terminals 4% WLAN antennas 14% Other 10% GSM/CDMA wireless terminals 28% WLAN antennas Base station antennas Communication networking equipment 10% 16% 35% Wireless repeaters WLAN antennas Communication networking equipment 13% 20% 22% Wireless repeaters 8% Base station antennas 11% Wireless repeaters 18% Communication networking equipment 26% Percent of all online activity for this product group GSM/CDMA wireless terminals 8% GSM/CDMA wireless terminals 10% wwwchinasourcingreportscom 7
5 SUPPLIER PROFILES Fujian Star-net Communication Co Ltd Exporting $10 million worth of wireless communication equipment annually, Fujian Star-net offers fixed wireless terminals Of the company s $200 million total annual revenue, wireless communication equipment accounts for about 10 percent Annual sales in the line total $20 million The company has one factory with a capacity utilization of 92 percent Its monthly output for wireless communication equipment reaches 11,000 units The 4,000 workers include 1,200 personnel in the R&D department, which receives an annual fund equivalent to 10 percent of total revenue Last year, the supplier shipped 5,500 unit to the EU and the Asia- Pacific region Exports are split among OEM, 90 percent and OBM, 10 percent The company plans to increase its annual capital expenditure by up to 50 percent Exports are also expected to increase between 10 and 20 percent in the next 12 months, with the EU as the main target market Profile Production units/mth Capacity Output Exports 5,500 12,000 11,000 Company facts Year established 2000 Business type Manufacturer Company ownership UK-invested Head office location Fuzhou (Fujian) Number of factories 1 Factory location(s) Fuzhou (Fujian) Total factory area 20,000sqm No of full-time employees 4,000 No of R&D/design staff 1,200 No of QC staff 100 Annual sales (all products) $200mn Annual R&D spending $20mn ISO certification Sales $mn/yr Total sales Sales (wireless communication equipment) Exports (wireless communication equipment) Contact details Sales & output: Wireless communication equipment Annual sales $20mn Share of total sales 10% Annual export sales $10mn Total monthly capacity 12,000 units Average monthly output 11,000 units Capacity utilized 92% Average monthly exports 5,500 units Export ratio 50% OEM % of exports ODM % of exports 90% OBM % of exports 10% Other products made networking products, routers Business contact ZHENG Xi Phone (86-591) Fax (86-591) oemhzb@star-netcn zhengxi@star-netcn URL wwwstar-netcn wwwglobalsourcescom/star-netco Address No Building, Star-net Science Plaza, Juyuanzhou, 618 Jinshan Road, Fuzhou, Fujian, China 28 China Sourcing Reports
6 SUPPLIER PROFILES Capability In-house processes Cosmetic design Mold making no Plastic injection no PCB assembly SMT Stability test VSWR tester 5 EMC tester 5 Popular export models Fixed wireless terminal Model FP1X MOQ 100 sets Packaging Inner box, carton Delivery 45 days Price $35 Exports by product Base station antennas WLAN antennas Fixed wireless terminals 100% Wireless repeaters WiMAX equipment Phone immobilizers Exports by market North America European Union 60% Europe (non-eu) Asia-Pacific 20% Middle East Other 20% Survey Export prices Stayed the same Export sales Increase 10-20% Target market European Union Capital expenditure Increase up to 50% Major challenge Yuan-USD exchange rate Export capability Reduce production cost R&D focus Anti-interference Description: Fixed wireless phone; 900/1,800MHz, 850/1,900MHz GSM frequency range; 46VDC, 1A input voltage, 37V lithium battery; 0 to 40 C operating temperature range, 5 to 95% humidity Fixed wireless terminal Model FP1X With FXS Port MOQ 100 sets Packaging Inner box, carton Delivery 45 days Price $38 Description: Fixed wireless phone; 900/1,800MHz, 850/1,900MHz GSM frequency range; 46VDC, 1A input voltage, 37V lithium battery; 0 to 40 C operating temperature range, 5 to 95% humidity Fixed wireless terminal Model FT5X MOQ 100 sets Packaging Inner box, carton Delivery 45 days Price $130 Description: Fixed wireless terminal; 850/900/1,800/1,900MHz GSM frequency range; transmission power: EGSM 850 class 4 (2W peak), EGSM 900 class 4 (2W peak), GSM 1,800 class 1 (1W peak), GSM 1,900 class 1 (1W peak) wwwchinasourcingreportscom 29
7 PRODUCT GALLERY PRODUCT GALLERY Base station antennas Model: BSR-DB (06)D Packaging: Carton Delivery: 45 days Description: Base station antenna; 210kmph wind loading; FRP radome material; UVresistant; pole-mount; -55 to 70 C operating temperature range, 95% relative humidity; in gray; 1280x265x132mm, 6kg; 8kg packing weight Model: MGR-DD-07B Packaging: Inner box, carton Delivery: 30 days Description: Base station antenna; ABS wind radome material; wall-mount; -10 to 60 C/-10 to 70 C operating/storage temperature range, 90% relative humidity; in white; 206x177x455mm, 550g Model: MGR-OD-03B Packaging: Inner box, carton Delivery: 30 days Description: Base station antenna; ABS radome material; ceiling-mount, PC and ABS mounting material; -10 to 60 C/-10 to 70 C operating/storage temperature range, 90% relative humidity; in white; 201x78mm, 410g Model: 2GS-15X65TF0 Packaging: Carton Delivery: 45 days Description: Sector panel antenna; 2 7/16- DIN bottom female mechanical connectors; fiberglass radome material; 50 to 115mm mounting hardware; -40 to 65 C operating temperature range; 13kg Model: EGS-15X65TF0 Packaging: Carton Delivery: 45 days Description: Sector panel antenna; 4 7/16- DIN bottom female mechanical connectors; fiberglass radome material; 50 to 115mm mounting hardware; -40 to 65 C operating temperature range; 165kg Model: 3GS-18X65TF07 Packaging: Carton Delivery: 45 days Description: Base station antenna; 210kmph wind loading; FRP radome material; UVresistant; pole-mount; -55 to 70 C operating temperature range, 95% relative humidity; in gray; 1,435x165x100mm, 65kg; 115kg packing weight Information not disclosed wwwchinasourcingreportscom 61
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