By Wayne Ma BEIJING -(MarketWatch)- China will aim to expand its trials of a national communications network that integrates Internet, television and telephone services in 2012, the state-run Xinhua news agency reported Monday, citing China's minister of industry and information technology.
The country hopes to expand the network to major cities next year, Xinhua reported, citing Miao Wei.
Last year, the State Council approved the first group of cities to take part in the trial program involving the construction of the integrated network. The three services generally use separate networks in China.
The announcement paves the way for state-owned Chinese cable operators and telecommunications carriers to spend billions of dollars on new network equipment and other hardware in the coming years, creating huge opportunities for makers of such equipment, though the details of how the project will proceed remain vague
Here's a wsj video. You only need to watch the first 50 seconds to understand why TNC is an immediate "must" in china. Previous company wins in these pilots are 50%. There's no reason to expect less from the next set of trials (and by extension, deployments). The rev from platform installations alone should catapult this stock to double digits. The OSS revenue opportunities (including CDN) lead one to imagine quite astounding valuations for humble, little UTSI. http://online.wsj.com/video/top-5-in-tech-1216---1223/C9648F05-80E0-42CE-A9AF-A9032E8251F7.html?mod=WSJ_Tech_videomodule_3 Indeed, I anticipate a happy new year for long suffering holders, including me, of course. :-)
Sorry to disappoint but the TNC pilot expansion to cover all China provinces has been delayed for a few months. Total of 30 cities, mostly provincial capitals, will be in the next phase. Also, the integration of China's provincial digital television networks into a large national network has also been delayed, possibly to the end of 2012. So, while UTSI is still making progress with equipment sales, the more rapid development hoped for is once again delayed.
The question for 2012, though, really is when and how much UTSI will make from its OSS operations. Won't know much about that until the company tells us altho there are some indications sales in this area are beginning to develop. Income will come from UTSI's internet IPTV project into the United States and some of the trial cities that are further advanced in development using UTSI's control platform.