The deal complements UTStarcom’s drive into the CDMA marketplace by providing it with an established handset brand and access to CDMA operators, particularly in North and South America.
UTStarcom CEO Hong Lu said the company is the largest handset provider in China, having shipped 16.5 million units in 2003, which it expects to increase to between 18 million and 20 million this year.
He said the acquisition would increase efficiencies by broadening the supply chain with UTStarcom’s own CDMA handsets, manufactured in China.
UTStarcom has built up market share in China by pioneering the low-cost Personal Handyphone System technology. However, a push into CDMA will open up the top end of the market with it can offer to CDMA carriers worldwide.
