Doesn't matter.UTSI is and has been is survival stage for years.Stocks like UTSI do not deserve higher share price.
On the other hand stocks like YOD are much higher than fundamentals indicate because they face potential explosive growth.Individual stock risk is about the same for both at this time.
wow! Amazing Promoter we alert us fair! Thank you as i read DD this stock is Going to Release Commercial First Quater in 2014 Good thing's coming! Buying Now is safe this is Not going to Down anymore!
Sentiment: Strong Buy
Physics Friends network, I will recomended, if you say Scam, Well Keep watching Coming Big Commercial is coming $PFNI, Look the Chart now.
Sentiment: Strong Buy
Yes, I always believed in UTSI. so I am holding the stock for 5+ years (adding more when it falls).
It's time mow our patience gets rewarded . GL
Sentiment: Strong Buy
I'll go down with the ship or I'll be rewarded for my patience. Either way, I do believe UTSI is finally making progress.
They've addressed the cost issues and AioTV definitely shows potential. Given they'll be cash flow positive 1Q 2014, I expect their 2nd half 2014 numbers to look pretty good. (keeping fingers crossed they don't do something stupid like increase executive compensation)
Things will get really interesting when aioTV announces its first major contract. Funny thing is that management announced it would develop the TV over IP platform both thru acquisitions and internal development. When you read about aioTV's platform, it certainly sounds like it has a lot of software integrated from UTSI's audiovideo technology, yet there was never an announcement by the company about this. To replace Microsoft's Media Room package in Mexico is obviously very signficant and involves much more than just the aioTV UI. Hope we get more announcements in the next few months, contracts, new products, etc. Wonder if there are any other long term investors around...
Have a nice evening.
Sentiment: Strong Buy
Nuances in Tech Options Open Path To More Multiscreen Service Models
POSTED IN: CONTENT ECOSYSTEM, DISTRIBUTION STRATEGIES, LEAD STORY
Mike Earle, CEO, aioTV
Mike Earle, CEO, aioTV
By Fred Dawson
November 13, 2013 – Dramatic shifts in over-the-top players’ multiscreen video service strategies have made it much clearer where the opportunities and threats lie for incumbent pay TV providers and other entities that have a stake in broadband video.
On the one hand, the likelihood that a Silicon Valley giant with deep pockets will become a national competitor in the pay TV business has diminished with pullbacks by Intel, Sony and Google and with Apple’s intentions still in rumor mode. On the other hand, the vast sums pouring into original programming for OTT delivery by Netflix, Amazon, Microsoft and hoards of other online entertainment outlets are increasing pressure on service providers to include such content in their offerings.
With Virgin Media in the U.K. having cut a landmark deal to make Netflix part of its TV lineup and reports that Comcast and Suddenlink Communications in the U.S. are considering similar moves, the dam of resistance against incorporating Web content into the pay TV mix may finally be breaking. Moreover, the wealth of high-quality content emerging online is creating an opportunity for smaller incumbent operators as well as ISPs and mobile companies to think about packaging a premium service that would avoid dealing with traditional channels altogether.
In all cases the question becomes how best to seize these opportunities from a technological standpoint, especially when it comes to enabling a seamless tie-in between OTT and traditional TV content. Capabilities that need to be factored into the technology choices surrounding the various business models now in play are well illustrated by the multiscreen service platform on offer from aioTV, a company backed by UTSTARCOM and Innovacorp that has operated under the radar globally but now is moving to publicize its presence in the North American market.
aioTV has tailored its in-the-cloud middleware and applications support system to suit the needs of all types of service providers, from mobile and smaller fixed broadband entities to Tier 1 incumbent pay TV operators. After making headway abroad with licensing of its highly flexible multiscreen middleware platform, especially in Latin America, the company is now on the verge of signing deals with major players in the U.S., including mobile and pay TV incumbents, according to aioTV CEO Mike Earle.
“The market wasn’t ready for what we were offering when we started four years ago,’ Earle says. “But we’ve been planting seeds with operators as we waited for the hardware to catch up.”
Hardware in the vein of an array of devices ranging from small dongles to OTT sidecars to high-end hybrids with IP capabilities has definitely caught up. As a result, Earle notes, aioTV’s customers can use its middleware and client apps to seamlessly integrate Web-based content into the TV viewing experience, thereby avoiding the cumbersome approaches to switching from one domain to the other that have so far characterized efforts to bring Web content to the TV.
“We provide the tools that allow you to aggregate multiple services in a TV-like experience,” Earle says. “It can be anything from licensed linear pay TV and broadcast programming to unlicensed content curated from the Web. We bring it all to the end user’s device whether it’s a TV, a tablet, a PC or handset with a consistent user experience across all devices.”
While such capabilities are widely touted by suppliers these days, Earle makes the argument that many solutions overlook critical details, starting with maintaining what he considers to be the right balance between what is done in the cloud and what is done at the device end. “We’ve built a set of tools, including ingestion, authentication, metadata management and navigation, that allow operators to manage their services from the cloud,” he says. “But we also recognize that you must be able to provision content on a device-by-device, stream-by-stream basis in conformity with rights policies and monetization opportunities, which requires an ability to manage what is happening at the device level. There’s no asset management system tied to traditional pay TV access that will do that.”
To make this possible aioTV has developed a client player that supports whatever apps are associated with the content suppliers who make up a given distributor’s portfolio of curated Web content. “It’s hard to do everything in the cloud,” Earle says. “We stand up the content providers’ players and, through our middleware, support execution of whatever authentication requirements, DRMs, streaming formats, metadata, applications and modes of monetization are associated with those players.”
When it comes to content that’s available for free distribution, such as much of the video content on YouTube, aioTV embeds the access code in its player to facilitate easy integration of such content into the viewing options on the distributor’s navigation system. The company provides a UI template to support navigation across all the Web content, allowing distributors to skin and brand the UI as they see fit. For operators who have already developed universal navigation systems that can tie pay and Web content together, the aioTV middleware can be decoupled from the aio template and integrated with the operator’s navigation system, Earle notes.
A key development which should help drive service providers’ embrace of Web content is industry concurrence with common authorization and metadata processes recommended by the Open Authentication Technology Committee (OATC), a non-profit industry association of content owners, multi-channel video program distributors (MVPDs), technology companies and system integrators. OATC’s Online Multimedia Authorization Protocol (OMAP), released for comment last year, is a voluntary open standard that defines the architecture, protocols and data formats needed to build and deploy interoperable systems that authorize access to protected media content on any Internet-connected device.
This year the group, whose principal members include CBS Interactive, DirecTV, Cox Communications, Discovery, Disney, Fox Networks, NBC Universal and many other major players, issued its Metadata Feed Recommended Practice document describing a common approach for content providers and distributors to use in describing their content and how it’s used. The idea is to simplify content exchange while ensuring consistent quality and regular updating of metadata via Web services.
aioTV, which Earle says was invited by NBC Universal to join the group and help demonstrate how the new specifications would work on a next-generation platform, has adapted its technology to work with these authorization and metadata processes. “These efforts give me confidence that MVPDs will be able to accelerate their use of Web content and to build monetization processes around individual content owners’ policies and features,” he says.
In enabling Web video enhancements to pay TV operators’ offerings, one of the four usage models aioTV touts for its platform, the company is taking advantage of new low-cost set-tops, typically available at $50 each with mass quantity purchases. These devices are meant to complement the existing set-top rather than serving as an alternative conduit for viewing, as is the case with devices like the Roku terminal, Earle notes.
“We’re supporting the notion of a pass-through device which has HDMI input and output so that an operator who wants to offer more linear channels or more VOD or other IP-based content can use our middleware to support a unified experience on the TV screen without interfering with the rendering of the pay TV UI from the installed set-top,” he explains. “The service provider is able to pick from a wide range of CE products we’ve approved to work with our platform. This hardware has to run our code and meet our other requirements for rendering the enhanced services UI and navigation features.”
With its support for authentication and individual content suppliers’ apps, the aioTV platform can also be used to support multiscreen TV Everywhere service, allowing operators to bring the Web content enhancements into the pay TV experience on connected devices. This can be done with or without using the pass-through option, but the latter provides a way for operators to deliver a uniform pay TV/Web content experience across all devices, including all the TV sets in the home.
Earle says aioTV is also talking with traditional OEM suppliers of pay TV set-tops about the possibility of integrating its player and middleware APIs with the pass-through capability, which would eliminate the need for the additional device. He also notes that manufacturers of smart TVs are preparing to introduce the pass-through capability in order to create a unified navigational experience that would enhance the pay TV provider’s service offering with or without that provider’s participation.
So far, CE manufacturers have used their connected TV capabilities to create apps enabling a Web viewing experience that’s completely separate and therefore marginalized from the viewing experience offered by the pay TV UI and service package. Were TV makers able to drive the Web viewing experience along with specialized apps into the pay TV viewing domain, they could pose a challenge to established service providers by promoting apps that leverage IP technology to sell ads, promote e-commerce and control many other facets of the home entertainment experience.
“The old threat, OTT content delivery, has been replaced by a new one, which is the CE manufacturers’ play for control over the living room,” Earle says. “I’ve spoken with two big CE companies who would prefer that the MVPDs (multichannel video programming distributors) stay in place. There’s a low margin for them trying to deliver their own pay TV packages, but if they can wrap value around the pay TV content with enhancements from the Web, that’s a home run for them.”
Along with allowing pay TV providers to get out in front of such maneuvers, the aioTV platform provides a safe, manageable way for SPs to begin the migration to all-IP TV services, Earle notes. “We give them the flexibility to move at whatever pace they want, even down to one channel at a time,” he says. “They don’t have to pull the plug on their QAMs and hope it all works at once. It’s completely non-disruptive at the consumer end, because it’s all coming through the same UI, so the consumer has no idea such a transition is going on.”
Of course, the aioTV platform provides a way for distributors to deliver the complete pay TV payload as well as Web content enhancements over IP, eliminating the need for legacy set-tops altogether. This approach, another one of the four models the platform is designed to support, has been taken by Maxcom, a pay TV operator in Mexico City that has used the aioTV platform to replace Mediaroom, the Microsoft IPTV middleware recently acquired by Ericsson.
A variation on this approach can be found with a U.S. cable company which is contemplating deploying the aioTV platform in conjunction with use of DTAs (digital terminal adapters) to support conversion of the digital streams to analog for viewing on cable-ready analog TV sets. The all-IP pay TV service would allow the operator to use low-cost dongles in lieu of set-tops for households with digital TV sets.
Still another application for the platform involves replacing traditional multichannel pay TV with Web video. This has great appeal both for mobile operators and for Tier 2 and 3 cable and telephone companies who are finding pay TV to be an unsustainable business but still want to offer a branded video service.
“What’s really lighting up for us with this application is the wireless space,” Earle says. “We have imminent deals in the making with major mobile providers who want to provide a compelling video service but have come to look on trying to be virtual MVPDs as a fool’s errand.”
Two models for these providers are emerging, he adds. One applies to carriers who offer unlimited data access as part of the service package, which makes it impractical for them to promote heavy video usage over their cellular networks. Instead, the idea is to use a pass-through box with access to their offering over the in-home Wi-Fi feed from the fixed broadband network. This service enhancement becomes a benefit to cellular customers who may or may not be pay TV subscribers.
Other mobile companies that charge for data usage are looking at aioTV as a way to deliver a Web video package over LTE networks directly to cell phones. Noting LTE providers are moving to enable multicasting, known as LTE broadcast, as a way to reduce bandwidth consumption, Earle says there’s great interest in developing a unique IP-based video experience that works within the constraints of the mobile operating environment. “Our platform adapts to LTE broadcast,” he notes.
As for the smaller fixed service operators who are weighing alternative approaches to traditional pay TV service, Earle says, “We’re hearing a lot from those guys. Using our packaging and curating tools in conjunction with a personalized navigation experience they can brand as a broadband value-add is becoming a compelling alternative to staying the course with pay TV.”
Thanks as always. That's lot of information. The stock is up a little bit, not as much as I would like to see, but I take it.
Happy investing and GLTA.
Earnings call was about as expected. Some good, some disappointing. Cash is down to $3.09 per share but some of the decline was put into reserves and/or equipment. Most important information, IMHO, was the following: "...notching new customer wins with large local incumbent service providers in Taiwan, Indonesia and Brazil" for MPLS-TP. As sales to these carriers ramp, margins will increase as the sales replace lower margin older products. Hopefully, overall sales will also increase. Still not clear we will see profit from TV over IP platform in 2014-5 period as promised by managment but it now appears contracts for MPLS-TP could lead to a higher stock price nonetheless going forward from here.
Have a nice day.
As far as the earnings report tomorrow, I am not expecting a break out quarter although it could certainly happen at any time. Sales for the new contracts will take some time to ramp up and then you always those issues of revenue recognition and final payment. Management has guided for breakeven with possibly slight incremental increases in sales, profit and cash, etc. and most likely that is what we will get. Still, with $3.17 per share in cash, stock price should go back up to prior recent levels if these targets are met.
Then, of course, you have TV over IP business which seems to be developing nicely. The iTV Media Inc. completed the platform in Spain in May so subscriptions there should start to ramp this quarter. In addition multiple applications seem to have been added to the platform, probably from UTSI's internal development as the company has indicated it would be doing this. Maybe we will get some announcements tomorrow. iTV Media also announced in June a new STB 2.0 that sounds like it now includes the aioTV technology that it had announced it was licensing several months ago. Samsung's Galaxy S4 cell phone was launched in the spring which has a built in application that allows user to access the Me TV television channels.
aioTV also seems to be making some progess with a contract with an unannounced telecom carrier and evaluation by 3 of the largest MSO's in the US. Comcast's description of its X2 interface due for release later this year with broad deployment next year sounds very much like aioTV's. Comcast, aioTV and Samsung although presented together at a common conference several months ago suggesting collaboration. Speculative. Time Warner and Cox are likely the other 2 MSO's evaluating this technology as both have indicated they want an interface of this type. Lots of interest but only small contracts so far.
Conference call tomorrow morning. Hope it goes well.
Have a nice day.
Sentiment: Strong Buy
MPLS-TP is basically a switching transport technology that reduces the need for routing and bandwidth by encoding the data in a certain manner, at least that is what I got from reading the various white papers on the topic. It is important for 3G networks, but it appears to be almost mandatory for 4G networks. Competing technologies have mostly been abandonned and it looks like this is what will be widely deployed.
The switching can start at the edge with a very small device (TN 701) and then go thru various other levels such as access, aggregation, metro and finally core which is fiberoptic. UTSI has developed switches for all of these levels although the core switch (TN 765) has not been announced yet although it is shown on the company website. The TN 765 has nearly a terabyte of switching capacity so it is a pretty big switch.
At the edge, these switches can interface with corporate/enterprise LANS via ADSL, GEPON, 10GEPON, etc. or WiFi connections such as the intelligent WiFi meshes, in-doors or outdoors, MiFi modems, etc. Most importantly UTSI has developed network management software that provide rapid provisioning of services and managment and maintenance of this entire network down to the smallest element with 50,000 elements per network. Very important as it has become clear that large numbers of small cells will be needed for 4G systems.
Competition comes from ECI, Cisco, Alcalu, Huawei, ZTE and Ericsson but most have minimal deployments so far and it appears UTSI does indeed lead the pack. UTSI has announced MPLS-TP contracts now for Japan (Softbank and possibly KDDI), SKT in Korea, Brazil, Indonesia and Taiwan with Chungwa. To be sure this is a niche market but the Softbank ramp in sales indicates it is a rather large one for a company like UTSI that has maybe $160 million in annual sales right now.
Have a nice day.
Thanks Shadow. I bought my first block at 20's and that was before RS.(Ouch, that hurts!) I have a lot of investing experience but no technic background. For all of these years, I enjoyed reading Tigre, Tim, Tech, Coach and your posts. Unfortunately they are all gone. I still hold my majority of UT just for the heck of it and fortunately, it's not big portion of my portfolio anymore. One problem of investing Chinese companies is that there are always under table deals the public investors don't know. I guess Tech knows it better since he lived in China for many years. I did follow his recommendation to buy SPRD and made some money. For UT, I will have patience and wait. I will be happy if it can reach 10. Well, 20 is better even it's after RS. What a disaster. But hey, sometimes you win sometimes you lose. That's life.
Thanks again. Good luck to you and all long time longs.
Salurobe, there are many positives about UTSI to discuss but let me just shed some light on one of them, the contract PTN MPLS-TP with some carrier in Brazil that has resulted in "especially strong sales" this year. Judging by the ramp of sales for this product to Softbank in Japan, the initial sales are small compared to the subsequent sales as the 3 year total up to 2012 for Softbank was $100 million or more with probably half of that coming in the third year. Could Brazil be even larger???
So the question is who is the customer in Brazil UTSI is selling to. Historically, the company sold to Brazil Telecom various products in the past including fixed mobile convergence, IPTV and broadband products, albeit in only small sales. That company has merged with another and is now Oi Telenorte and has 50 million subscribers compared to Softbank's 33 million. A Google search will lead to a white paper by this company outlining the reasons for using MPLS-TP today and indicates strongly that it will be deploying this technology (as well as the SDN technology UTSI has described is in its pipeline for development). So, another good customer perhaps, and I know I will take heat for this speculation but sometimes connecting the dots provided actually does work.
What makes this ever more interesting is that another white paper on this topic indicates that Telecom Italia is also very committed to deploying this technology. Now, it turns out that TI owns the second largest wireless carrier in Brazil, TIM which has 72 million subscribers. Unfortunately, TI is loaded with debt and couldn't deploy MPLS-TP technology on its own. So it appealed to Anatel, the Brazilian regulator, to allow it build its 4G network with a partner and they would then share the network. Anatel approved the deal on April 19, 2013. TIM is partnering with Oi Telenorte. Combined they have 152 million subscribers and will be building a common 4G network with MPLS-TP from UTSI.
Have a nice day.
Flip was definitely short this stock. He could have sold shares at $3.60@ earlier this year prior to the 3 for 1 reverse split that resulted in a sudden drop in the price and the subsequent buyout submitted by Lu and Shah.
Now he sells @ $2.40 a share after holding the stock for 9 years and after the company announces multiple new orders for its PTN product???? Even I, the long term perma superbull, sold stock at that time as short term events suggested little movement in the stock price. Logic dictates that the was short the stock and it appears he did extremely well. Good for him. I have been wrong so far, but hopefully this time I will be more successful. I have placed my trust in Hong Lu and his good friend Masayoshi Son for many years now and I will continue to do so now. They both could easily have sold out their positions and moved on many times in the past 9 years but they didn't.
Have a nice day.
Sentiment: Strong Buy
I don't think flip was a short but he did act like a baby. Now, for what reason do you think the company is at the corner of turning around. I like your posts but not always agree with you. The buyout was totally a joke and the company changed CEO every five minutes. I really don't see the light at the end of tunnel at this time, which you claimed several times. Any of your input will be greatly appreciated.
==this company has so many facts suggesting that its turnaround is at long last gaining traction==
Say WHAT? (ROFL!)
Sentiment: Strong Sell