Jane Chen / Shanghai Daily news

UTStarcom Inc. has formally entered China's mobile phone manufacturing business, as the Nasdaq-listed telecommunications supplier announced today it has obtained the relevant licenses from the National Development and Reform Commission, Sina.com reported.
The US-based company will produce phones based on both Global System for Mobile Communication (GSM) and Code Division Multiple Access (CDMA) technology.
It plans to unveil 10 new products in the following six months and has commenced preparation of its marketing plan, according to sources close to the company.
A leading equipment supplier to China's cordless phone service Little Smart, UTStarcom expanded into mobile phone manufacturing earlier this year by launching a joint venture with Chinese Electronics Corporation Telecom (CECT). It now offers three models, two GSM and one CDMA, with global sales approaching 22 million, according to its official data.
The company hopes to optimize its business by diversifying product lines from solely supplying Little Smart, where it is losing its dominant position. Its share of total units supplied plunged from 71 percent in 2003 to 42 percent in 2004, when its key rivals, Shenzhen Huawei Technologies Ltd and ZTE Corp. saw their shares swell to around 20 and 10 percent respectively.