UTStarcom Inc. will unveil mobile phones that support both the Little Smart service and third-generation mobile telecom standards around the end of this year, according to James Wang, senior sales engineer with the Nasdaq-listed telecom equipment supplier, which is famous for its Little Smart business.

The company is developing WCDMA/PHS and CDMA2000/PHS phones, he said.

WCDMA (Wideband Code Division Multiple Access) and CDMA2000 are two of the three 3G standards, while PHS is the abbreviation of Personal Handy System, or the Little Smart service.

"We are increasing our focus on 3G development" said Wang, "nearly half of our research staff are engaged in 3G development."

"The company's goal is to provide solutions for all three 3G standards for mobile telecom operators," he added.

UTStarcom's China unit is involved in WCDMA and TD-SCDMA (Time Division - Synchronous Code Division Multiple Access) products, while its overseas arms are focusing on TD-CDMA and CDMA2000 products, according to Jennifer Wu, technical sales manager with UTStarcom's enterprise marketing department.

Despite the increasing focus on 3G development, the development of dual-technology phones reflects UTStarcom's continuing ambition in the Little Smart market, analysts pointed out.

Wu echoed this judgment by anticipating the longevity of China's telecom market with the use of both 3G products and the cordless Little Smart service.

Entry into the 3G arena will not phase out the Little Smart service, she argued.

The Little Smart service is inferior in voice quality to mobile telecom but it's cheaper, which is attractive to phone users.

UTStarcom holds more than 60 percent of China's Little Smart market in network equipment and 29 million of China's 54 million Little Smart customers are using UTStarcom phones.

The company has reportedly unveiled a dual-technology phone that supports both the Little Smart service and the GSM system in Vietnam.

GSM is the second-generation mobile telecom technology now widely used.

The phone is not marketed in China.

(eastday.com June 30, 2004)