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Tuesday, November 15, 2005 7:29:18 PM
UTStarcom wins Net TV deal in China
By Jeffry Bartash, MarketWatch
Last Update: 4:42 PM ET Nov. 15, 2005
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WASHINGTON (MarketWatch) -- UTStarcom Inc. on Tuesday won a potentially lucrative contract to help the biggest phone company in China to build a network over which it plans to deliver television service.
Reports of the contract with China Telecom circulated before the company's official announcement late Tuesday afternoon, sending UTStarcom (UTSI: utstarcom inc com
News, chart, profile Last: 8.10+1.53+23.31% 6:40pm 11/15/2005
Add to portfolio Analyst Create alert Insider Discuss Financials More UTSI UTSI8.10, +1.53, +23.3%) shares up as much as 41%. The stock ended with a 23% gain, up $1.53 to $8.10.
UTStarcom said that it doesn't expect to generate "meaningful" revenue from the agreement in the near future, but the Alameda, Calif.-based firm added that "this represents a significant opportunity over the next several years." See news release.
China Telecom, the largest landline phone operator in that country, plans to upgrade its phone networks with new Internet technology to deliver a cable-like TV service to millions of its customers.
In the United States, Verizon Communications Inc. (VZ:
verizon communications com News, chart, profile
Last: 30.82-0.55-1.75%
6:43pm 11/15/2005
Add to portfolio Analyst Create alert insider Discuss Financials More VZ VZ30.82, -0.55, -1.8%) and SBC Communications Inc. (SBC:
SBC Communications Inc.
News, chart, profile
Last: 23.89-0.06-0.25% 6:42pm 11/15/2005 Add to portfolio
Analyst Create alert Insider Discuss Financials More SBC
SBC23.89, -0.06, -0.3%) are spending billions over the next few years to build similar Internet-based networks.
China Telecom has been conducting trials and plans to launch service soon to 5,000 customers in Shanghai.
The contract could provide a big boost to the struggling UTStarcom, whose sales and profits have plunged in recent quarters.
UTStarcom used to generate most of its revenue from the phones and network equipment it sells for a cheap and unique wireless service in China. The service, known as PAS, allows limited-range phone calls. Yet sales from that business are falling rapidly, forcing the company to look elsewhere for growth.
UTStarcom also sells networking gear used to deliver high-speed Internet service, and it recently entered the business of making wireless phones.
By Jeffry Bartash, MarketWatch
Last Update: 4:42 PM ET Nov. 15, 2005
Disable MW live quotes | E-mail it | Print | Alert | Reprint |
WASHINGTON (MarketWatch) -- UTStarcom Inc. on Tuesday won a potentially lucrative contract to help the biggest phone company in China to build a network over which it plans to deliver television service.
Reports of the contract with China Telecom circulated before the company's official announcement late Tuesday afternoon, sending UTStarcom (UTSI: utstarcom inc com
News, chart, profile Last: 8.10+1.53+23.31% 6:40pm 11/15/2005
Add to portfolio Analyst Create alert Insider Discuss Financials More UTSI UTSI8.10, +1.53, +23.3%) shares up as much as 41%. The stock ended with a 23% gain, up $1.53 to $8.10.
UTStarcom said that it doesn't expect to generate "meaningful" revenue from the agreement in the near future, but the Alameda, Calif.-based firm added that "this represents a significant opportunity over the next several years." See news release.
China Telecom, the largest landline phone operator in that country, plans to upgrade its phone networks with new Internet technology to deliver a cable-like TV service to millions of its customers.
In the United States, Verizon Communications Inc. (VZ:
verizon communications com News, chart, profile
Last: 30.82-0.55-1.75%
6:43pm 11/15/2005
Add to portfolio Analyst Create alert insider Discuss Financials More VZ VZ30.82, -0.55, -1.8%) and SBC Communications Inc. (SBC:
SBC Communications Inc.
News, chart, profile
Last: 23.89-0.06-0.25% 6:42pm 11/15/2005 Add to portfolio
Analyst Create alert Insider Discuss Financials More SBC
SBC23.89, -0.06, -0.3%) are spending billions over the next few years to build similar Internet-based networks.
China Telecom has been conducting trials and plans to launch service soon to 5,000 customers in Shanghai.
The contract could provide a big boost to the struggling UTStarcom, whose sales and profits have plunged in recent quarters.
UTStarcom used to generate most of its revenue from the phones and network equipment it sells for a cheap and unique wireless service in China. The service, known as PAS, allows limited-range phone calls. Yet sales from that business are falling rapidly, forcing the company to look elsewhere for growth.
UTStarcom also sells networking gear used to deliver high-speed Internet service, and it recently entered the business of making wireless phones.
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