UTStarcom Divests IPTV Units

Chinese manufacturer UTStarcom is divesting itself from its IPTV division. The division supposedly accounts for a third of the company's revenue but is still not profitable. The IPTV division will become a stand-alone privately held company headed up by current UTStarcom CEO Jack Lu. I'm not sure if having the current CEO take over the new IPTV company shows confidence that the company will be a success or whether Jack Lu is being forced out of UTStarcom to take over the division that was a drag on the overall bottom line.

I have always wondered why UTStarcom didn't try to crack the North American market. When I was exposed to the product a few years ago I found it to be a solid product at half the price of domestic US competition.