The advantages in smart meter carrier chip business of Eastsoft Communication (300183.SZ) are presented by strong customer base, high market share and deep participation in technical standards.

Since entering into the power line carrier communication industry in 1996, Eastsoft has developed products catered to customers’ diversified demand in the complex application environment in China. Its customers spread all over 20 provinces and municipal cities in China.

Due to the diverse technology applied by carrier chip manufacturers, especially the different center frequency, carrier communication products cannot be replaced by each other. Thus, once a brand of carrier chip is chosen by customer, it will not be substituted easily. Eastsoft seized the market expansion opportunity of power information collection system, occupying over 40% of the market share.

Eastsoft builds up a fortune by its technology. It is one of the standards-makers of National Standards for Low Voltage Power Line Carrier Meter Reading System, as well as Community Energy Meter Reading System Specification. Being as the standards-maker is not only good for Eastsoft to develop products that are closed to the industry trend, but also enables it to win the initiative in the competition.