Editorial Summary

IPTV will become one of the most important growth points for UTStarcom (Nasdaq: UTSI) in 2005, UTStarcom president Wu Ying told China Business News on April 21. According to Wu, revenues from IPTV will account for 15 to 20 percent of UTStarcom's total revenues in 2005. Overseas revenues accounted for 24 percent of UTStarcom's total revenues in 2004 and will make up about 50 percent of revenues in 2005. Wu said that UTStarcom has signed a contract with Yahoo Broadband in Japan to provide IPTV services to five million users. Meanwhile, UTStarcom will install IPTV equipment for 100,000 users in Florida. However, Wu said that hurdles to the development of the IPTV industry in China are IPTV licenses, content, technology, infrastructure and a lack of capital.