UTStarcom Holdings Corp. (UTSI): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear, data-driven snapshot of UTStarcom Holdings Corp.'s business model as of late 2025, and I can defintely give you that. The numbers from the first half of 2025 tell a story of a company in transition, leaning heavily on services and new contracts to offset declining equipment sales. Honestly, when you see Net services sales hit $4.1 million against equipment sales of just $0.5 million-especially with that equipment carrying a negative gross margin of 30.4%-you know where the immediate focus needs to be. We map out the nine essential components below, showing exactly how UTStarcom Holdings Corp. is balancing its $49.2 million cash reserves against its R&D needs and carrier relationships.

UTStarcom Holdings Corp. (UTSI) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power UTStarcom Holdings Corp.'s (UTSI) ability to deliver its telecom infrastructure products and services as of late 2025. These aren't just casual agreements; they are the backbone of their manufacturing and market access strategy.

China Telecom Research Institute for 5G Router Hardware Manufacturing

The relationship with the Guangdong Research Institute of China Telecom Co., Ltd ("China Telecom Research Institute") is critical, marking a shift for UTStarcom Holdings Corp. from primarily design services to volume manufacturing for China Telecom's metropolitan area network (STN), which supports 5G services.

This partnership was cemented by a multi-million dollar RFP win announced in January 2025, with frame agreements signed in early 2025 and purchase orders expected throughout 2025. The contract is split into two main packages for carrier-grade disaggregated routers:

• Manufacturing share for STN-A1 routers (1RU, 300Gbps capacity) is 70%.
• Manufacturing share for STN-A3 routers (4RU, 800Gbps capacity) is 100%.

To put this in perspective against recent performance, UTStarcom Holdings Corp.'s total revenues for the first half of 2025 (1H 2025) were $4.6 million, and net equipment sales were only $0.5 million. This contract is definitely intended to be a significant revenue driver moving forward.

Strategic Partner Tongding Interconnection Information Co., Ltd. (TDI)

Tongding Interconnection Information Co., Ltd. ("TDI") acts as a key strategic investor and partner. The relationship was formalized in September 2018 to jointly market and distribute products in China and international markets. TDI specializes in optical fiber and communication cables, which complements UTStarcom Holdings Corp.'s optical networking strength.

Historically, TDI's investment level has been significant. In January 2019, TDI increased its stake to 9.9%, paying approximately USD $4.54 per share, which was about a 30% premium over the recent average share price then. Furthermore, in February 2019, TDI intended to increase its ownership to approximately 36% via a transaction valued at about $49.2 million.

The initial focus of this strategic alliance included:

• Developing optical fiber cable businesses in India.
• Marketing and selling UTStarcom Holdings Corp.'s flagship PTN and SyncRing products in China.

Outsourced Manufacturing Partners for Equipment Production

While the China Telecom Research Institute contract specifies UTStarcom Holdings Corp. as the manufacturer under an OEM Procurement Project, the company relies on external manufacturing capabilities to scale production. The business model progression to volume manufacturing implies established, though not explicitly named, outsourced production channels.

The financial context shows the importance of equipment sales, even with recent declines. For the full year 2024, net equipment sales were $1.4 million, and for 1H 2025, they were $0.5 million. The negative equipment gross margin of 30.4% in 1H 2025 suggests that the cost structure within these manufacturing partnerships needs close monitoring.

Global Equipment Distributors for Market Reach

UTStarcom Holdings Corp. collaborates with equipment distributors to ensure market reach beyond its direct sales efforts. The company's primary operational focus areas are listed as China, Japan, and India. The services revenue, which was $4.1 million in 1H 2025 (a 16.9% decrease from the prior year), is tied to deployed solutions across these regions and recent expansion orders in Europe.

Here is a snapshot of the key partnership elements and associated data points:

UTStarcom Holdings Corp. (UTSI) - Canvas Business Model: Key Activities

You're looking at the core engine of UTStarcom Holdings Corp. (UTSI) right now, which is all about building and supporting the high-speed network gear carriers need. The key activities center on engineering, making the hardware, and keeping it running, all while chasing those big deals.

Research and development (R&D) of new telecom infrastructure

The R&D function is definitely a major cost center, showing the commitment to developing next-generation gear, even when revenues are tight. For the first half of 2025, Research and development (R&D) expenses clocked in at $2.3 million. This was actually a slight reduction from the $2.6 million spent in the corresponding period of 2024, which management attributed to completing current projects and maintaining tight cost controls. The focus remains on IP-based products, specifically for 5G transport networks.

Here's a look at the financial scale of the core business segments in the first half of 2025:

Manufacturing and OEM of disaggregated router platforms

This is where UTStarcom Holdings Corp. (UTSI) translates its design work into physical products, often through Original Equipment Manufacturer (OEM) agreements. Net equipment sales for the first half of 2025 were only $0.5 million, a sharp drop of 31.6% compared to the $0.8 million seen in the first half of 2024. To be fair, the equipment gross margin for 1H 2025 was negative, coming in at negative 30.4%. This segment is heavily tied to the success of securing and fulfilling large hardware contracts.

Providing network maintenance and warranty support services

Services are the more stable part of the revenue mix, though they also saw a dip in the first half of 2025. Net services sales totaled $4.1 million, which was a 16.9% decrease from the $4.9 million recorded in the same period last year. This decline was linked to the completion of current projects and a lack of new major projects in India. Still, the activity continues:

• Received multiple maintenance and warranty support orders in 1H 2025.
• Support covers deployed solutions like PTN, NMS, SyncRing, and IMS.
• Service gross margin for 1H 2025 was 22.4%.

It's a business that needs consistent renewals to keep the lights on.

Securing large-scale carrier contracts via competitive RFPs

Landing a major Request for Proposal (RFP) win is critical for future revenue visibility, and UTStarcom Holdings Corp. (UTSI) achieved a significant milestone here. They were selected as a major winner of an RFP from the China Telecom Research Institute for manufacturing disaggregated router hardware platforms intended for China Telecom's STN network, which supports 5G mobile services. Frame agreements for this were signed in early 2025, with purchase orders expected throughout 2025. This is how you get the next big revenue wave.

Here are the specifics on that major win:

• Contract is for the 'Self-developed STN-A Equipment Hardware Production and OEM Procurement Project.'
• Secured 70% of the manufacturing contract for STN-A1 routers (1RU, 300Gbps).
• Awarded 100% of the manufacturing for STN-A3 routers (4RU modular chassis, 800Gbps).

The company ended the first half of 2025 with a cash balance of $49.2 million, which gives them runway to execute on these new contracts. Finance: draft 13-week cash view by Friday.

UTStarcom Holdings Corp. (UTSI) - Canvas Business Model: Key Resources

You're looking at the core assets UTStarcom Holdings Corp. relies on to operate and compete in the telecom infrastructure space as of late 2025. These aren't just line items; they represent the tangible and intangible foundations of the business.

Financial Capital

The immediate liquidity position is a key resource, especially given the recent operating losses. As of the close of the first half of the year, UTStarcom Holdings Corp. reported its balance of $49.2 million in cash, cash equivalents, and restricted cash on June 30, 2025. This cash buffer is critical for funding ongoing operations and strategic initiatives.

The commitment to future technology development is reflected in recent spending:

• Research and development (R&D) expenses for the first half of 2025 totaled $2.3 million.
• This R&D spend represented a decrease from $2.6 million in the corresponding period in 2024, attributed to project completions and cost controls.

Intellectual Property and Technology Assets

The proprietary technology forms a significant barrier to entry. UTStarcom Holdings Corp. maintains ownership of intellectual property that underpins its product lines. This includes the core technology for:

• Packet Transport Network (PTN) solutions.
• SyncRing technology.
• Software Defined Networking (SDN)-based solutions.

The company's ability to secure major contracts, such as the significant RFP win from the China Telecom Research Institute in January 2025 for manufacturing disaggregated router hardware platforms, validates the relevance of this underlying IP for next-generation network use cases.

Human Capital: Specialized Talent

The expertise of the engineering and R&D teams is non-negotiable for developing and supporting complex telecom gear. As of March 31, 2025, UTStarcom Holdings Corp. reported a total employee count of 219 people. This talent base is distributed globally, with key operations and R&D centers historically located across Asia and North America.

Here's a quick look at the financial commitment to this talent pool in the first half of 2025:

Installed Base and Carrier Relationships

Existing relationships and deployed equipment represent an installed base that provides recurring service revenue opportunities and a platform for future upgrades. UTStarcom Holdings Corp. has an existing installed base of network equipment with major carriers, particularly in key markets like India and China.

These relationships are active, evidenced by recent business developments:

• Secured a major RFP from China Telecom Research Institute in 2025.
• Service sales for the first half of 2025 were $4.1 million, though this reflected a decrease due to project completions.
• Equipment sales were $0.5 million for the first half of 2025.

The company's operating entities span several countries, including Hangzhou, China; Tokyo, Japan; San Jose, USA; and Delhi and Bangalore, India, which supports the global nature of this installed base and its associated support contracts.

UTStarcom Holdings Corp. (UTSI) - Canvas Business Model: Value Propositions

You're looking at the core benefits UTStarcom Holdings Corp. (UTSI) offers its network operator customers as of late 2025. This isn't about what they sell, but the concrete value those sales deliver.

High-performance equipment for mobile backhaul and metro aggregation.

UTStarcom Holdings Corp. offers advanced equipment specifically optimized for the most rapidly growing network functions, including mobile backhaul and metro aggregation. This focus supports the broader industry trend where the 5G network deployment service market is projected to reach $17.16 billion in 2025, growing at a 24.0% CAGR from 2024. Globally, 5G connections hit 2.4 billion in the first quarter of 2025, showing the scale of the required infrastructure upgrade.

Cost-effective, reliable communication services for network operators.

The commitment here is to deliver services that are both reliable and cost-effective. For instance, in the first half of 2025, UTStarcom Holdings Corp. generated $4.1 million in net services sales, which represented a 16.9% decrease from the prior year's $4.9 million, reflecting project completion cycles. The service gross margin for that same period was 22.4%, compared to 33.1% in the first half of 2024.

Enabling 5G network services with disaggregated router hardware.

A key value driver is enabling 5G services through open, disaggregated router hardware, exemplified by the major contract win with the China Telecom Research Institute. This positions UTStarcom Holdings Corp. to support China Telecom's metropolitan area network, which is crucial for its 5G mobile network services.

Here's a breakdown of the hardware value secured in that contract:

This disaggregation strategy helps operators break vendor lock-in and achieve tailored, open solutions.

Long-term maintenance and expansion support for deployed solutions.

UTStarcom Holdings Corp. supports its deployed solutions, such as PTN, NMS, SyncRing, and IMS, through ongoing maintenance and warranty orders. The company also secured expansion orders in the first half of 2025, including a NetRing PTN network expansion for a European Mobile Operator and a features expansion order for an IMS Broadband Core solution for an Indian customer.

The value proposition is supported by the company's financial footing as of mid-2025:

• As of June 30, 2025, UTStarcom Holdings Corp. maintained cash, cash equivalents and restricted cash of $49.2 million.
• The market capitalization as of December 04, 2025, stood at $23.392M.
• For the first half of 2025, net equipment sales were $0.5 million, though the equipment gross margin was negative 30.4%.

Finance: draft 13-week cash view by Friday.

UTStarcom Holdings Corp. (UTSI) - Canvas Business Model: Customer Relationships

You're looking at how UTStarcom Holdings Corp. (UTSI) manages its relationships with its key clients, which is almost entirely a Business-to-Business (B2B) setup centered on large, complex network infrastructure deals.

Dedicated account management for tier-one global carriers is evident through major engagements. For instance, UTStarcom Holdings Corp. secured a multi-million dollar China Telecom Research Institute RFP win in early 2025 for disaggregated router hardware intended for China Telecom's STN network. This suggests a deep, dedicated relationship with a major domestic player in China. The company also maintains operations and customer support with a special focus on China, Japan, and India. Support in Japan is extended through a local Test and R&D Lab in Tokyo.

Long-term service contracts for maintenance and support form a consistent revenue base, though one that has seen recent pressure. Net services sales for the first half of 2025 were $4.1 million, representing a 16.9% decrease from the $4.9 million seen in the first half of 2024. In the first half of 2025 alone, UTStarcom Holdings Corp. received multiple maintenance and warranty support orders related to deployed solutions like PTN, NMS, SyncRing, and IMS. However, the service gross margin for the first half of 2025 was 22.4%, down from 33.1% in the corresponding period in 2024, which the company attributed to decreased activity with a major customer in India. For the full year 2024, service gross margin was 28.7%.

Direct engagement for expansion orders and new feature deployment is key to growing existing accounts. In the first half of 2025, UTStarcom Holdings Corp. continued to receive expansion orders, including a NetRing PTN network expansion for a Mobile Operator in Europe, and a features expansion order for the IMS Broadband Core solution deployed by one of its key Indian customers. Furthermore, in the second half of 2024, the company completed development of a customized NG-PTN product, NetRing TN704ES, for a European mobile operator, with samples provided for testing and orders anticipated in 2025.

The B2B relationship model focuses on complex infrastructure projects, which often involve long development cycles and significant post-sale support commitments. The frame agreements for the major China Telecom Research Institute project were signed in early 2025, with specific product quantities to be defined in purchase orders expected throughout 2025. This project is for equipment crucial for supporting China Telecom's 5G mobile network services, as well as enterprise, broadband, and cloud services. The dependency on these large projects is clear; net services sales for the second half of 2024 decreased by 19.4% compared to the second half of 2023, mainly due to the completion of current projects and no new major projects in India.

Here's a quick look at some relevant service-related financial metrics from the recent reporting periods:

The nature of these ongoing commitments involves support for a range of deployed products:

• NetRing PTN
• SyncRing
• IMS
• SSTP

The company also received renewal orders for post-sale support pertaining to NG-PTN in the second half of 2024. If onboarding takes 14+ days, churn risk rises, which is why maintaining these support contracts is defintely critical for UTStarcom Holdings Corp.

Finance: draft 13-week cash view by Friday.

UTStarcom Holdings Corp. (UTSI) - Canvas Business Model: Channels

You're looking at how UTStarcom Holdings Corp. (UTSI) gets its gear and services into the hands of telecom operators as of the middle of 2025. The channel strategy clearly centers on winning big, direct contracts, but the recent financial results show some real pressure points in execution.

Direct sales team for securing major carrier RFPs

The direct sales effort is clearly geared toward landing large, strategic deals with major carriers. This approach seems to be the primary lever for securing significant equipment and service contracts. A key win here is the contract secured with the China Telecom Research Institute for manufacturing disaggregated router hardware platforms, which is expected to support China Telecom's 5G mobile network services. This win suggests the direct sales team is successfully navigating complex procurement processes within major Chinese entities.

Global sales offices, especially in China, Japan, and India

UTStarcom Holdings Corp. (UTSI) maintains a market focus that heavily involves its global sales presence in key Asian markets: China, Japan, and India. The performance across these regions directly impacts the top line. For the first half of 2025, the revenue picture shows significant regional dependency and challenge. Net equipment sales were only $0.5 million, a sharp drop of 31.6% from the prior year, which the company directly attributes to lower sales to major customers in India. Similarly, net services sales of $4.1 million saw a 16.9% decrease, mainly due to the completion of current projects and a lack of new major projects in India. The company ended the first half of 2025 with a total cash balance of $49.2 million as of June 30, 2025.

Here's the quick math on how the sales segments, driven by these channels, performed in H1 2025:

What this estimate hides is the margin erosion on the equipment side; a negative equipment gross margin of -30.4% in H1 2025 is a serious channel profitability issue.

Strategic partner networks for joint product distribution

While the direct sales to major carriers are highlighted, the performance in India suggests that either the partner network there is underperforming, or the reliance on a few large customers through any channel is a concentrated risk. The service gross margin dropped to 22.4% in H1 2025 from 33.1% in the prior year, which the company also linked to decreased activity with the major customer in India. The success of the China Telecom RFP win, however, suggests that for new, large-scale projects, the direct/strategic relationship channel is still the priority.

Direct delivery of equipment and deployment services to customer sites

The delivery and deployment aspect is intrinsically linked to the services revenue stream. The $4.1 million in net services sales for the first half of 2025 represents the bulk of the revenue, but its decline shows that project deployment activity slowed down significantly. The company's operating expenses were managed down, with Selling, General and Administrative (SG&A) expenses at $2.6 million and Research and Development (R&D) expenses at $2.3 million for the same period, showing cost control efforts alongside the revenue drop.

• Equipment sales decline was 31.6%.
• Services sales decline was 16.9%.
• Service gross profit fell to $1.0 million from $1.6 million year-over-year.
• The company is actively managing costs, with operating expenses decreasing by 7.5% to $4.9 million in H1 2025.

Finance: draft 13-week cash view by Friday.

UTStarcom Holdings Corp. (UTSI) - Canvas Business Model: Customer Segments

You're looking at the customer base for UTStarcom Holdings Corp. (UTSI) as of the middle of 2025. The numbers show a concentrated, project-driven set of clients, heavily influenced by activity in specific regions.

Tier-1 mobile and fixed-line telecommunications network operators.

UTStarcom Holdings Corp. focuses on network operators globally, providing equipment for mobile backhaul, metro aggregation, and broadband access. These operators are the primary buyers of the NetRing PTN and IMS Broadband Core solutions. For instance, in the first half of 2025, UTStarcom Holdings Corp. continued receiving expansion orders, including the NetRing PTN network expansion for the mobile transport network of a Mobile Operator in Europe. This segment is crucial, as the company's stated purpose is helping network operators offer innovative, reliable, and cost-effective services.

Telecom research institutes, like China Telecom Research Institute.

A significant recent development involves research and standards bodies. UTStarcom Holdings Corp. was selected as a major winner of the Request for Proposal (RFP) from Guangdong Research Institute of China Telecom Co., Ltd (China Telecom Research Institute) in the first half of 2025. This win is for manufacturing a large number of disaggregated router hardware platforms intended for China Telecom's STN network. The frame agreements for this multi-million dollar project were signed in early 2025, with specific product quantities expected via purchase orders throughout 2025. This win is key for supporting China Telecom's 5G mobile network services, enterprise, and broadband services.

Customers in key geographies: China, India, Japan, and Europe.

The operational focus remains on Japan, India, and China, with activity also noted in Europe. The financial performance in the first half of 2025 clearly illustrates the impact of customer concentration in India. Net equipment sales fell by 31.6% to $0.5 million, driven by lower sales to major customers in India. Similarly, net services sales of $4.1 million were down 16.9%, mainly due to the completion of current projects and no new major projects in India. Conversely, expansion orders in the first half of 2025 included a Mobile Operator in Europe.

The geographic concentration and project timing directly affect the top line. Total revenues for the first half of 2025 were $4.6 million, a 19.3% decrease from the $5.7 million reported in the first half of 2024.

The key geographies and associated recent activity include:

• China: Secured the major RFP with the China Telecom Research Institute.
• India: Experienced decreased revenue and service activity in 1H 2025.
• Europe: Received a NetRing PTN network expansion order in 1H 2025.
• Japan: A historical focus area for products like SyncRing.

Enterprises requiring advanced broadband access solutions.

Enterprises are served indirectly through the network infrastructure solutions provided to carriers, which support broadband access and cloud services. The China Telecom Research Institute win specifically mentions supporting broadband access services on the STN network. The company's end-to-end broadband product portfolio is designed to enable operators and enterprises worldwide to build efficient networks for applications including broadband access.

Here's a snapshot of the customer-related financial context as of June 30, 2025:

The company continues to receive maintenance and warranty support orders for deployed solutions like PTN, NMS, SyncRing, and IMS from existing customers globally.

Finance: draft 13-week cash view by Friday.

UTStarcom Holdings Corp. (UTSI) - Canvas Business Model: Cost Structure

You're looking at the core expenditures UTStarcom Holdings Corp. (UTSI) faced in the first half of 2025. These numbers show where the money went before we even look at the cost of the goods sold.

Total operating expenses for UTStarcom Holdings Corp. (UTSI) in the first half of 2025 were reported at $4.9 million. This figure reflects the company's ongoing efforts in cost control, as it was lower than the $5.3 million recorded in the first half of 2024.

The breakdown of these operating costs centers on two main areas, which you can see detailed below:

• Research and development (R&D) expenses were $2.3 million in H1 2025.
• Selling, general, and administrative (SG&A) expenses totaled $2.6 million in H1 2025.

The cost structure is also heavily influenced by the expenses tied directly to the equipment sales, which, frankly, were a drag on profitability during this period. The gross loss on equipment sales was $0.2 million for the first half of 2025. This resulted in a negative equipment gross margin of 30.4%.

Here's a quick look at the key cost components related to sales for H1 2025. We can figure out the cost of equipment sales by adding the net sales to the gross loss, since a loss means the cost exceeded the revenue. Here's the quick math: Net Equipment Sales were $0.5 million, and the Gross Loss was $0.2 million, meaning the Cost of Equipment Sales was $0.5 million plus $0.2 million.

To be fair, the negative margin on equipment sales is a significant structural issue to watch. If onboarding takes 14+ days, churn risk rises, and here, high cost of sales definitely impacts the bottom line.

UTStarcom Holdings Corp. (UTSI) - Canvas Business Model: Revenue Streams

You're looking at how UTStarcom Holdings Corp. (UTSI) actually brings in the money right now. For the first half of 2025 (1H 2025), the total revenue came in at $4.6 million. That total is split between selling equipment and providing services, and honestly, services make up the vast majority of it.

Here's the quick math on the top-line revenue components for the six months ended June 30, 2025:

The equipment side saw a significant drop, with net equipment sales at just $0.5 million in 1H 2025, down substantially from $0.8 million the prior year. Net services sales were $4.1 million for the same period, which was a decrease from $4.9 million in 1H 2024, mainly because some projects wrapped up and new major ones hadn't kicked off yet in India.

Still, UTStarcom Holdings Corp. generates revenue from ongoing customer support. This recurring revenue comes from:

• Maintenance and warranty support services orders received in 1H 2025.
• Support for deployed solutions like PTN, NMS, SyncRing, and IMS.

Plus, they are banking on new, large contracts to diversify this. For instance, they secured a multi-million dollar RFP win from the China Telecom Research Institute for manufacturing disaggregated router hardware platforms, which is definitely a key future revenue driver for their STN network.

Beyond core operations, there's income from their balance sheet. Net interest income for the first half of 2025 was $1.2 million. That income is generated from their cash position; as of June 30, 2025, UTStarcom Holdings Corp. held cash, cash equivalents, and restricted cash totaling $49.2 million.

Finance: draft 13-week cash view by Friday.