 Wireless carriers in the U.S. offer an array of phones to attract customers. Top brands include LG, Motorola, Nokia, and Samsung. But you can also get carrier-branded phones, often at a lower cost. For example, there is the T-Mobile MDA, the Verizon Wireless CDM7075, and the Cingular 8125. For these phones, carriers work with lesser-known manufacturers (lesser-known, at least, in the U.S.) that are willing to fill a market niche. We look at two of those phone makers: HTC (High Tech Computer; www.amer
ica.htc.com) and UTStarcom (www.utstar.com).
 HTC: Windows Mobile Specialist | 
Supplied by UTStarcom for Verizon Wireless, the G’zOne Type-V complies with military standards for water, dust, and shock resistance. |
Based in Taiwan, HTC is a leading provider of Windows Mobile PDAs and smartphones, claiming 80% of new devices running the Windows Mobile OS. HTC is behind the T-Mobile MDA, the T-Mobile Dash, and the Cingular 8125.
Founded in 1997, HTC started out by developing PDAs. Initial products included devices for the Compaq iPAQ brand. The company supplied PDAs to HP and Palm. Currently, HTC provides phones for most U.S. carriers, including Alltel, Cingular (now AT&T Wireless), Qwest, Sprint Nextel, T-Mobile, Telus, and Verizon Wireless. HTC also sells phones in Europe and Asia. And not surprisingly, HTC’s North American offices are located in Bellevue, Wash., close to the headquarters of its partner, Microsoft.
BusinessWeek magazine named HTC No. 3 in its top 100 IT businesses for 2006. In addition to its relationship with Microsoft, HTC has landed a deal to provide 500,000 smartphones for a company contracting with the U.S. Census Bureau. And HTC has designed a TV phone for Modeo, a U.S. company that expects to offer live mobile TV service via cell phones. HTC also collaborates with UTStarcom to supply Pocket PC smartphones.
UTStarcom: Diversified | 
The AT&T/Cingular 8525 from HTC handles 3G UMTS (Universal Mobile Telecommunications System)/HSDPA (High-Speed Downlink Packet Access) and GSM (Global System For Mobile Communications)/GPRS (General Packet Radio Service)/EDGE (Enhanced Data For GSM Evolution) networks for global coverage. |
UTStarcom began operations in 1995 as a result of the merger of two companies attempting to grow their telecommunications services, equipment, and software business. UTStarcom grew quickly by pioneering PAS (Personal Access System) technology, a scaled down version of a cellular network, in China. In 2000, the company began looking for new market opportunities for diversification. As a result it acquired handset manufacturer Audiovox in 2004, establishing its UTStarcom Personal Communications handset division. UTStarcom has also expanded into wireless and broadband infrastructure markets worldwide.
Within the U.S., UTStarcom Personal Communications provides phones to numerous carriers. Verizon Wireless offers the most UTStarcom products and the company serves Alltel, Cricket, Sprint, Telus, and Virgin Mobile, among others. The parent company, UTStarcom also supplies Wi-Fi VoIP (Voice over Internet Protocol) handsets to VoIP resellers.
UTStarcom Personal Communications makes a range of CDMA (Code-Division Multiple Access) handsets and contracts with other companies, including HTC, for its GSM (Global System for Mobile Communication) phones. The product line includes basic mobile phones (the UTStarcom CDM7025/Sprint CDM120), mid-level camera phones (such as the Verizon CDM7075), and niche phones (the T-Mobile Sidekick and Verizon Wireless G’zOne Type-V).
A Moving Target
In the U.S., mobile phone sales are tied to cellular carriers—most consumers pick a carrier before selecting a phone. Although they take different approaches when it comes to specialization vs. diversification, HTC and UTStarcom are leveraging this carrier allegiance through sales of carrier-branded phones.
But the mobile phone market is fickle. Just ask Motorola, which has struggled to develop a new phone to follow the success of the RAZR. In the coming months, the Apple iPhone, dual-mode Wi-Fi/cellular VoIP phones, and small companies such as Cellatel (formed by the merger of Alcatel and Lucent) will stir the pot and keep the mobile phone industry moving forward.  by Carmen Carmack
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