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.

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.