Fixed line telecom companies are going to eat cable providers for lunch. It is already happening in Europe according to this article. I am trying to figure out how to play this development. Clearly, being long Verizon and ATT is one way. Shorting Comcast and Time Warner is another. Cisco may be a beneficiary as well, but I am looking at some other more speculative plays - UTStarcom and Orckit. I am interested in what others think as the play on this?

 

Submitted: Aug 29, 2007    Views: 604    Comments: 2    Likes: 8   


View Article: http://www.nytimes.com/2007/08/29/business/worldbusiness/29tele.html


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Comments Received:

pyramidpal
(Unregistered)

It's pure bull$hit did UTSI or Orckit give you any shares to tout there shares?

Posted: Aug 29, 2007

Author/Submitter Response:

As a matter of fact, I have lost a ton on UTSI and am also down a little on Orckit, but thinking of adding to both positions. Thanks for your effort to engage in an intelligent conversation.

Dave Clark
(Unregistered)

Clearly, IPTV has its greatest appeal and largest market penetration, where both the broadcasters' and Telecom companies' goals are in complete alignment. China is the obvious market where everything is controlled or directed by the Chinese Government and UTStarcom(UTSI) will be clearly the winner there with over 60% of the paid subscriber market. UTStarcom is also a major player in India where the government also exerts strong controls over Telcom and broadcasting. UTSI may be going through some financial indigestion at the moment but it is in an extremely strong position in the World's two largest and best IPTV markets and should see huge appreciation in its stock price as this technology takes hold. IPTV penetration is estimated to double by 2010.

Posted: Aug 29, 2007

Author/Submitter Response:

The problem with UTSI is a cash burn one and the question is whether it meets the IPTV potential without needing to go through bankruptcy.



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