Alameda, CA-based UTStarcom has signed a deal with China's largest wireline carrier, China Telecom, for an IPTV service set to launch by year-end. UTStarcom will provide its mVision end-to-end system for a new service launching in Shanghai with nearly 5,000 subscribers. The IPTV offering will include live broadcast television and videos on demand and is designed for time-shifted viewing, allowing customers to record shows and store them for later viewing. Although the struggling UTStarcom said it is not banking on an immediate ROI from the IPTV endeavor, the company sees the project as one with long-term benefits. Recent studies have predicted the Asia-Pacific region will account for 50 percent of the worldwide IPTV market by 2010 with more than 110 million subscribers.
UTStarcom's relationship with China Telecom as a telecommunications equipment provider is over a decade old, dating back to the launch of UTStarcom's PAS wireless voice network. UTStarcom cites its smooth deployment of IPTV through mVision with Softbank Broadband in Japan as a harbinger of its success in China. China Telecom has 40 IPTV trials deployed throughout the country. China's more than 1.3 billion people and supposed 90 percent television penetration rate should prove a fruitful IPTV market.
For more on UTStarcom's IPTV deal with China Telecom:
- check out this article from TMCNet.com