UTStarcom, which in recent months has significantly expanded its presence in the CDMA market through several strategic acquisitions, introduced its MovingMedia 2000 platform, an end-to-end IP-based infrastructure solution for CDMA/CDMA2000 networks.
Whereas traditional CDMA networks consolidate multiple network elements in large switching centers, UTStarcom's MovingMedia 2000 solution uses a packet network to distribute components throughout the network. This lets carriers distribute and share network elements and functions across geographic regions, making it far cheaper to extend base stations and pico cells to remote locations. The distributed architecture results in distributed traffic. Instead of all traffic being backhauled to a central location, traffic is directed to the nearest gateway in the distributed network, so local calls stay in the local area. UTStarcom estimates that wireless operators will be able to significantly reduce the bandwidth and cost of backhauling traffic.
The company will offer MovingMedia 2000 solutions in 450MHz, 800MHz, and 1900MHz frequencies. The portfolio includes the MovingMedia 2000 Sonata SE-IMG, an intelligent, scalable media gateway that translates calls between traditional telephone networks and wireless networks; the MovingMedia 2000 Sonata MSC Server, high-capacity mobile switching center that functions as a next-generation softswitch; the MovingMedia 2000 Sonata SE-SGW (Signaling Gateway), which provides SS7 interworking and performs signaling functions for the MovingMedia.
UTStarcom also plans to introduce three low-cost CDMA handset models in early 2005 that will be interoperable with its MovingMedia 2000 infrastructure solution, as well as other CDMA2000 networks. http://www.utstar.com
- In July, UTStarcom partnered with Qualcomm to provide in-flight wireless CDMA communications aboard an American Airlines commercial aircraft. UTStarcom's MovingMedia 2000 solution enabled passengers using commercially available CDMA mobile phones to connect to the worldwide terrestrial phone network through an air-to-ground satellite link.
- Over the past few months, UTStarcom has created a full-solution CDMA business and product line to complements its wireless PAS portfolio. Its activities have included CDMA and WCDMA licensing from Qualcomm, a development partnership with IPWireless for TDCDMA technology, and strategic acquisitions, including Hyundai Syscomm, TELOS, and now ACC. UTStarcom said it is already the single largest handset provider in China, the largest, and most cost-competitive market in the world. It currently offers more than 30 different handsets, from high-end to low-cost models. The company shipped over 16.5 million units in 2003 and expects to ship between 18 to 20 million in 2004. UTStarcom said the CDMA would extend its position in international markets.
- UTStarcom agreed to acquire Audiovox Communications' handset division for $165.1 million in cash. The Audiovox division provides the company with a recognized CDMA handset brand, fully certified for the U.S. market; access to long-standing supply-chain channels; product marketing expertise; and key relationships with top-tier CDMA operators, particularly in North and South America.
