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UT-Starcom announces to turn from European technology of 3G to IPTV
[December 19, 2005]

UT-Starcom announces to turn from European technology of 3G to IPTV

(Comtex Global News)BEIJING, Dec 19, 2005 (Xinhua via COMTEX) -- US telecom equipment maker
UT-Starcom Inc. announced last week to give up WCDMA, the
European technology of the third mobile communication (3G), and
turn to IPTV.

The Beijing Morning Post reported the news Monday by quoting Wu
Ying, president of UT-stardom, saying that the company is making
adjustments to its development strategy, especially 3G.

"UT-Starcom has not and would not give up 3G," Wu said in
response to the report that his company planned to give up 3G.

However, owing to the change of the market and China's delay of
issuing 3G license, UT-Starcom will focus on technologies with
obvious advantages which could bring direct profits to the company, such as CDMA2000, Wu said.

That means UT-Starcom could give up WCDMA, the European 3G
standard, noted analysts. UT-Starcom has invested more than 1
billion yuan (about 125 million US dollars) on WCDMA, which is one
of the three major 3G standards along with CDMA2000 and TD-SCDMA.

The shrinking of the company in 3G is much related to its poor
performance. Analysts said it is hard for UT-Starcom to invest
heavily in a 3G program with vague prospects. The company had cut
down its staff before in adaptation.

Wu announced, meanwhile, three major businesses for the company
next year, which are IPTV, PHS (personal handset system) and
mobile phones, aiming at making profits next year with IPTV as the
focus.

The company has prepared over 10 billion yuan (some 1.25
billion US dollars) for IPTV, hoping to achieve the same big
success on IPTV as on PHS, said Wu.

UT-Starcom was set up in 1995 in the United States by a group
of Chinese students studying there. Listed on the NASDAQ in 2000, the company was based on the Chinese market and has invested over
two billion yuan (some 250 million US dollars).

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