The Rise and Fall of UTStarcom 50

Success is also Xiao He, and defeat is also Xiao He.

It's not all PHS.

The first acquaintance of UT Starcom was a forum I participated in at the beginning of 2004, when UT Starcom should be in its heyday, and Wu Ying, CEO of UT Starcom, was also full of scenery, he happened to be a guest speaker, through his introduction and understanding, there was a further understanding of the development process of UT Starcom. What I didn't expect was that in less than two years, UT Starcom immediately went into decline, which made people sigh. Now that we carefully look back and analyze the decline of UTStarcom, there are many enlightenments for our Chinese technology emerging enterprises.

If you ask what makes utStarcom? Undoubtedly, of course, by PHS. It is said that when Xu Fuxin, director of the Yuhang Post and Telecommunications Bureau in Zhejiang, got PHS out, not many people were optimistic about it, but Wu Ying took a fancy to it and bought tens of millions of PHS production equipment with the courage of gambling, and the result was a success in one fell swoop!

From the establishment of UT Starcom in 1995 to 2004, it has made a lot of money just by relying on PHS, with business income of up to 2.7 billion US dollars, ranking among the top ten manufacturers of communication equipment.

As the saying goes, "success is also Xiao He, defeat is also Xiao He", it is PHS that has achieved the glory of UT Starcom, and it is also PHS that sent UT Starcom to the road of decline. From the analysis of the policy environment, China's telecommunications industry belongs to the pattern of monopolistic competition, and any enterprise in the industry is deeply affected by the policy environment. Let you live, and you will surely live. PHS is a backward technology, and it can be deeply cultivated in China, which can create UTS Starcom, in which policy plays a decisive role.

Also due to changes in the policy environment, in the second half of 2004, China Telecom and China Netcom, two monopoly giants, built 3G networks, reduced investment in PHS, and directly impacted the PHS market. From the analysis of the product life cycle, PHS, as a special product of China's telecommunications industry, has moved from the growth period to the maturity period in ten years, and began to decline period, while the rapid development of UT Starcom has failed to transform in time, although it has also carried out new product development such as mobile phones and IPTV broadband services, but due to the excessive reliance on PHS, unfavorable policies have fueled the fire, coupled with the mistakes of business leaders, which directly led to the short-lived outcome of UT Starcom today.

PHS made UT Starcom, and Wu Ying seized the golden opportunity.

Wu Ying was born in Beijing in July 1959 and graduated from Beijing University of Technology in 1982 with a major in radio communication. In 1985, he went to New Jersey Institute of Technology to study for a master's degree. At the same time, he worked for NetLab Communications in the United States as a technical director; In 1992, Wu Ying registered Starcom Network System Company in Beijing; In 1995, UNITECH merged with Starcom to establish UT Starcom International Communications, with Wu Ying as president and CEO; On March 3, 2000, UTS Starcom was listed in the United States. Wu Ying himself was named one of the 50 Asian stars selected by Business Week.

UT Starcom is an international high-tech communication company specializing in the research, development, production and sales of cutting-edge technologies and products in the field of modern telecommunications. Founded in 1995, the company is headquartered in Silicon Valley, USA, with more than 10 R&D centers in the United States, China, India, South Korea and Canada. At the same time, it has established a wide range of branches all over the world to expand the global communications market with innovative and competitive products and professional services.

The company is an international high-tech communication company specializing in the research, development, production and sales of cutting-edge products in the field of modern communications, and is the world's leading provider of IP-based end-to-end network solutions and services. Founded by Chinese students studying in the United States in the 80s, the company originated in Silicon Valley, grew up in the Chinese market, was listed on the NASDAQ in March 2000, and has a number of R&D centers in China and India, with a global business scope.

On March 19, 2014, UT Starcom (NASDAQ: UTSI) announced that it will partner with Dasan Networks, a South Korean broadband access equipment provider, to help both companies launch competitive products to meet the increasingly complex needs of cable operators and mobile service providers.

The two companies signed a memorandum of understanding (MoU) at the Fiber Optic Conference (OFC) in San Francisco last week to collaborate on the design, development, manufacturing and sales of communications infrastructure products. The two companies hope to develop competitive products that will help operators quickly launch new services at significant cost reductions.

As the world's leading provider of IP end-to-end network solutions and services, the brand strategy of UT Starcom is an extension of the core concept of the enterprise, and the innovative technology of UT Starcom is the driving force for the development of world communications. UT Starcom uses a four-pointed star to express our corporate philosophy:

Insight: Understand customers, know competitors, and gain insight into the market.

Innovation: Create unique product solutions that leave others in the dust.

Convergence: A shared commitment to meeting the unique needs of our customers.

Inspiration: Always guarantee the success of our customers.

Our guide and four-pointed star outline in a clear, easy-to-understand way for employees, customers, businesses and capital markets what UT Starcom is trying to achieve.

In 2010, a major strategic adjustment was successfully implemented, in addition to the introduction of Beijing Yizhuang International Investment and Development Co., Ltd.'s strategic investment, the transformation of the board of directors and management team, and the relocation of the international operation headquarters to Beijing. In terms of market positioning, UT Starcom has changed from a single-facing telecommunications market to a simultaneous development of telecommunications and radio and television markets; In terms of business structure, UTStarcom has transformed from a high-tech equipment provider to operate in cooperation with operators, providing them with technology and products, as well as providing operational support services. After the strategic reorganization, based in China, adhering to the fine tradition of focusing on innovation and the pursuit of excellence, UT Starcom has launched a series of more complete and more suitable technologies and products for the integration of the national triple play, so as to meet the market demand and development in the fields of telecommunications, radio and television, electric power and education in the future.