Wednesday, December 8, 2010

Random info on UT and industry related news

Value of Network convergence infra spending:

"A report by the iChina Research Center, says that the Three Network Convergence related market will reach RMB 688 billion over the next three years, of which, RMB 249 billion will be spent on migration and construction of infrastructure for both telecom and cable networks, set-top boxes and content management and media service platforms, with the remaining RMB 439 billion generated through content demand and media consumption."

So, about $30B over 3 years will be spent. From the same UT PR,

"IPTV subscribers in China will be about 7 million by the end of this year and 10 million by the end of 2011."

"According to, China Telecom had 5.36 mln IPTV subscribers as of August 2010, accounting for over 82% of national IPTV users."

According to recent Chinese articles, UTs share is over 2m subscribers and 33%, which is consistent with the overall numbers so by end of 2011, it could be 3m+ users.

From same article above, Shanghai has another tender and results should have just come out.....

National IPTV network status:

"According to the statement, the platform network has already joined with sub-networks of radio and television organizations in five pilot regions in Sichuan, Hubei, Beijing, Shenzhen and Shandong."

Key statement there was Radio as UT acquired Stagesmart and deal with Cristar. Also, UT has already mentioned winning some cities in the pilot.

China Telecom investing CNY15B ($2B) in EPON in 2011.....whats UT share?

In Japan with Softbank, see this interesting article...

Softbank Proposes Fiber Broadband Highway for Japan

Statement of Jack Lu in the earnings CC,

"Finally, for our broadband business in Japan as we shared on the last call that we passed all of soft SOFTBANK BB’s quality control test. We have already started to receive purchase orders from the clients for our key end technology in Tokyo, Osaka and Nagoya. As a result, we expect a sizable increase in 2011 once this initial rollout proves themselves."

SIZABLE increase???

Jack Lu:

"So, while we continue to cultivate the telecom space with pure equipment based sales, you can see that the opportunity in China in with three network convergence is significant, and I see it as my job to ensure UTStarcom and its investors win a significant portion of the upside."

UT PR on Q3 accomplishments:

"the Company won a project with Jinan City's Cable Network as the exclusive broadband solution provider"

"the Company won IPTV projects with operators in Sichuan (already announced), Hubei (new), Henan (new) and Shenzhen (new)"

(Good wins that are the same cities to the pilot cities of the National network cities)

"the Company expanded a previously established revenue sharing relationship with South Media Interactive Co., Ltd, the interactive business unit of South Media Group, to add HDTV options to their IDTV offering, be responsible for the development of interactive products and provide operational support services to the platform "

"the Company announced a strategic partnership with a company controlled by a national level broadcaster to provide technology and operational support for Internet TV service in China and abroad"


Unfortunate to see the stock doing so poorly in light of the bull market and year-end rally....The street (or atleast some investors) may finally be giving up on the company/stock as it pushed the price below the investor buy in price and way below cash ($338m + $34m more in restricted cash = $372m or about $2.4 in total cash).

Anyway, the above shows the market for their products are healthy and growing. The key as always is the amount of share they can win and how fast.

If you are a bagholder like myself, atleast you should know what you've got and what the "hope" is.....