| US
: UTStarcom, Inc. , a global leader in IP-based end-to-end networking
solutions and services, today launched its global handset strategy,
strengthening the company's market position in the worldwide wireless
market. UTStarcom can now provide its global customers with complete
wireless solutions -- including both infrastructure and handsets --
for Personal Access System (PAS), CDMA, and 3G networks. As a part of
its strategy, the company is also expanding into new applications and
markets with its Wireless LAN (WiFi) and dual-mode handsets.
Leveraging its history of IP innovation, global R&D expertise, China-based
manufacturing operations, and mature sales and distribution channels,
UTStarcom can offer its carrier customers a complete portfolio of IP-based
wireless solutions. The company's worldwide handset strategy includes
the following elements:
--
Enable carriers to purchase handsets both as standalone products and
as part of a comprehensive IP wireless infrastructure solution;
--
Lower carriers' handset costs by leveraging UTStarcom's high-quality,
high-volume, low-cost manufacturing capability; and
--
Provide carriers with a wide variety of features, styles, and price
points across a range of low-end to high-end handset models.
CDMA
Handsets Part of New Strategy
As a part of its handset strategy, UTStarcom today announced its CDMA
7000 Series, the company's first internally designed and manufactured
CDMA handsets for the North American and Latin American markets. UTStarcom's
Personal Communications division (UTPC) (formerly Audiovox) will market
and distribute these handsets.
UTStarcom will exhibit its new CDMA 7000 series handsets, along with
its complete wireless handset product line, in the UTPC booth, located
in Hall E, booth #4045. The company will exhibit its wireless infrastructure
product family in UTStarcom's corporate booth in Hall C, #2518.
(For more information on UTStarcom's CDMA 7000 series handsets, please
see today's announcement "UTStarcom Launches the CDM-7000 CDMA
Handset Series - Its First Wireless Handsets Designed and Manufactured
for North America.")
"UTStarcom has gained significant expertise over the last seven
years manufacturing and deploying our PAS handsets and infrastructure
in China," said Hong Lu, president and chief executive officer
at UTStarcom. "Now we have combined our successful low-cost, high-volume
manufacturing operations in China with innovative handset R&D to
expand our portfolio to include CDMA, GSM, 3G, WiFi, and dual-mode handsets.
We can thus offer complete carrier-to-consumer bundles of our IP-based
solutions to service providers worldwide and deepen our carrier relationships
by bringing greater economies of scale for our customers and improving
their overall margins."
"UTStarcom's CDMA, GSM, and 3G handsets, as well as other models
supplied through manufacturing partnerships, give the UTPC division
a strong portfolio for its well-established sales and distribution channels,"
said Philip Christopher, president of UTStarcom Personal Communications.
"We will offer our carrier customers around the world a variety
of choices that span the entire handset spectrum of access technologies,
features, and price points."
Multi-Access Handset Strategy Complements Wireless Infrastructure Solutions
Last March, UTStarcom announced its expanded global wireless strategy
to deliver end-to-end, wireless solutions for operators with any type
of access, spectrum licensing, frequency spectrum, or user demographics.
Today's handset strategy announcement fulfills the last component of
that strategy by supporting a full range of handset models for CDMA,
GSM, 3G, and PAS networks.
In 2004, UTStarcom introduced a complete line of CDMA infrastructure
solutions with its 3G MovingMedia product family, along with initial
contracts with global carriers. The company now offers internally designed
and manufactured CDMA handsets that enable an end-to-end UTStarcom carrier-to-consumer
solution.
In addition, UTStarcom completed its 3G WCDMA field trials in China
with high marks from the Ministry of Information (MII) and believes
that it will be well positioned when 3G licensing is announced, which
the company expects to occur in the second half of 2005. The company
is currently developing 3G WCDMA handsets for the China market, once
again supporting a full carrier-to-consumer solution.
Finally, UTStarcom is developing GSM handsets for Europe, India, Asia
and North and South America.
Mobility Innovation for the Future: WiFi and Dual-Mode Handsets
Beyond CDMA and GSM, UTStarcom is developing new handset solutions that
are revolutionizing the communications marketplace. In March 2004, the
company launched the UT818, its first dual-mode PAS/GSM handset. PAS
subscribers who travel outside of their service area now can make and
receive calls on surrounding GSM networks. In January 2005, UTStarcom
unveiled its F1000 WiFi handset, the first WiFi handset targeted for
the residential market. Vonage will begin deploying the F1000 to its
subscribers in the spring/summer of 2005.
The company is also currently developing dual-mode handsets that offer
further convergence of wireless standards, including WiFi/CDMA and WiFi/GSM
handsets as well as WCDMA/PAS handsets for subscribers in China. In
the future, UTStarcom plans to offer TD-CDMA handsets with dual-mode
capabilities such as CDMA and GSM to complement its existing 3G TD-CDMA
infrastructure solution for wireless broadband.
Leveraging Proven High-Volume Design and Manufacturing Capabilities
As the leading PAS handset manufacturer in China, UTStarcom shipped
more than 30 million handsets over the last two years and amassed more
than 55 percent marketshare. More than 60 percent of UTStarcom's handset
components are supplied locally or regionally in Asia, greatly reducing
operational complexity and enhancing material cost control. All handset
manufacturing operations are ISO9000 certified for quality control.
UTStarcom is leveraging these manufacturing facilities and suppliers
in the production of its broader handset offerings.
UTStarcom believes its experience in high-volume, low-cost handset manufacturing
is complemented by its innovative handset designs led by R&D centers
based in Shanghai and Hangzhou, China; Seoul, Korea; Vancouver, Canada;
Chicago, Illinois; and Iselin, New Jersey. UTStarcom PAS handsets have
consistently proven to be among the best in the competitive Chinese
telecom market. In 2004, two UTStarcom models were ranked as the two
top-selling PAS handsets in China, while eight of the top ten were also
UTStarcom-designed and -manufactured handsets.
UTStarcom is also working closely with both QUALCOMM Incorporated and
Toshiba Corporation's Mobile Communications Company on CDMA handset
R&D.
Well-Established Channel with Long-Standing Carrier Relationships
UTStarcom's Personal Communications division (UTPC) provides the company
with a comprehensive sales, service, and support platform, as well as
key relationships with top-tier CDMA operators, particularly in North
and South America. UTPC is the only handset provider to sell to every
CDMA carrier in North America and has established relationships with
Tier 1 operators such as Verizon Wireless, Sprint PCS, ALLTEL, US Cellular,
Bell Mobility, Telus, BellSouth International, Telefonica, Virgin Mobile,
and MetroPCS.
UTPC shipped more than 1.5 million units in November and December 2004
and accounted for more than $250 million in sales in the fourth quarter
of 2004. The division introduced several new handset models in the fourth
quarter, including the CDM-8940, UTStarcom's first 3G EV-DO handset
for the U.S. market. This new handset will be sold by the company's
largest U.S. customer, Verizon. |
