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).

Source: Xinhua