Editorial Summary

UTStarcom (Nasdaq: UTSI) began large scale layoffs before the Chinese New Year, reports TechWeb. According to TechWeb, the sharp reduction in new PHS (Little Smart) equipment and terminal orders in 2005 is the major reason for the staff cuts. Both China Telecom and China Netcom have reduced investment in their Little Smart businesses. According to the report, the current round of layoffs will affect 15 percent of the employees.