Tag - Utsi

A few years ago, communications equipment and wireless-broadband company UTStarcom, Inc. (Nasdaq:UTSI) was a rising star. Largely driven by its leading market share in China, where breakneck economic growth, soaring consumer demand and the Chinese government's commitment to speed up technology infrastructure helped the company annually double its sales and profits. But, alas, no more. A cycle of turmoil, including steady financial woes and management discord, dragged the company into the red in 2005 and it has stayed there until recently, with signs pointing to it bouncing back into the black.

Founded in 1991 and headquartered in Alameda, Calif., UTStarcom provides communications equipment, networking solutions and international service and support to telecommunication service providers that operate wireless and wireline networks. With R&D operations in the United States, Canada, China, India and South Korea, the company sells its broadband, wireless and handset solutions to operators in both emerging and established telecommunications markets around the world. The company has had most of its successes in China and India, where it controls 65% and 80% of mobility markets, respectively.

Of the five company segments, which include broadband infrastructure, multimedia communications, handsets and services, UTStarcom's broadband business appears the most promising. IPTV, or Internet protocol TV, a technology that allows computer users to watch streaming TV channels over the Internet, is burgeoning in China, Japan and India, three key places where UTStarcom does business. The company, which dominates the small but fast-growing Chinese IPTV market with 90% market share, expects to have some 20 million paying IPTV subscribers by 2010. It helps that UTStarcom has solid relationships with domestic carriers and content providers such as Shanghai Media Group, the second-largest media group in China that also works closely with Intel Corporation (Nasdaq:INTC).

Last week, UTStarcom announced it will help set up an interactive advertising system in China for Guangxi Telecom Co., a firm owned by Beijing-based China Telecom Corp. (NYSE:CHA). While the company didn't release the terms of the deal, it did say Guangxi Telecom will use UTStarcom's IPTV equipment in the new advertising network, which will reach 14 Chinese cities through set-top boxes in office . . .