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UTStarcom to buy Audiovox unit
Paul Taylor in New York
Published: June 15 2004 0:11 / Last Updated: June 15 2004 0:11


UTStarcom, the fast growing telecommunications equipment maker, agreed to pay $165.1m in cash for the mobile phone division of Audiovox signalling the start of a planned assault on the US and Canadian handset markets.


Audiovox's mobile phone division is a leading supplier of handsets based on code division multiple access (CDMA) technology to most carriers in North America including Verizon, Sprint and Bell Mobility.

The deal also marks UTStarcom's determination to become a full-range global telecoms equipment vendor competing with Nokia, Motorola and Samsung.

"We believe the acquisition of ACC extends our handset leadership internationally, and accelerates time to market with a proven brand; a tremendous sales, service and support platform; and top-tier US operator customers," said Hong Lu, chief executive.

Until now UTStarcom has mostly focused on selling wireless infrastructure and networking services in Asia and is the largest handset producer in China shipping 16.5m phones last year.

In China UTStarcom makes personal wireless access systems that effectively substitute limited-range portable phones for traditional fixed local phones and internet service. This lower-cost system has provided an alternative network in areas where there has been limited phone network infrastructure.

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