STARCOM POWER: Hong Lu founded UTStarcom to bring high-quality, low-cost communications systems to China. In 2003, the company reported revenues of nearly $2 billion.

Alum and successful entrepreneur shares insights with Berkeley students

You will enjoy meeting Hong Lu and observing firsthand his passion, entrepreneurial flair and determination. See his talk on “Bridging the Global Telecommunications Divide” at Sibley Auditorium, Bechtel Center on Wednesday Feb. 4 at 4-5 p.m. A reception will follow in the Garbarini Lounge.

In 1991, Taiwan-born Hong Liang Lu visited mainland China for the first time in his life. The UC Berkeley civil and environmental engineering grad was struck by the vibrancy of what he expected to be a very rigid culture, but something surprised him even more.

“People were very lively and in a hurry to get places, but they didn't have a basic telephone infrastructure,” Lu says. “The only time I could make a phone call was during the lunch hour or when people were sleeping. I literally had to dial a number 100 times to get through.”

Lu's entrepreneurial mind transformed that low-tech nightmare into a high-tech opportunity. Not only was there a demand for good telephone service, he realized, but a telecommunication infrastructure would help grow the country's economy, increasing the size of the telecom market even more.

Today, UTStarcom, the Alameda-based company Lu founded to fill China's telecommunication void, is considered one of the fastest growing technology companies in the world Revenues for 2003 were $1.96 billion. And even with the majority of the telecommunications industry in a slump, UTStarcom's stock price rose 85 percent last year., The World Economic Forum designated UTStarcom one of its Technology Pioneers for 2004, a list of 30 companies “producing products that have the capacity to transform the way society and business operate.”

On Feb. 4, Lu, 49, will share his insights about commercial opportunities in the developing world and the challenges he faced with Berkeley engineering and business students in Sibley Auditorium from 4 to 5 p.m. The presentation is part of ICT4B (Information and Communication Technology for Billions), a project of the Center for Information Technology Research in the Interest of Society -- CITRIS. A personal priority of Dean Richard Newton, ICT4B is an effort to develop and deploy affordable telecommunications technology in developing regions.

UTStarcom's winning product is its Personal Access System (PAS), wireless telephone technology that allows users within city limits to make cheap phone calls and access the Internet on inexpensive handsets. PAS isn't as technically high-end as offerings from other telecom providers, but it's good enough, and affordable enough, to keep people connected. And that's why it's a success, Lu says. Already, hundreds of Chinese cities and villages are humming with PAS systems.

"If you're in business, how can you imagine not having communication tools?" Lu asks. "Making telecommunication technology available to more people enables everyone to accomplish more."

Lu's transformation from engineer to entrepreneur began while he was still a Berkeley student. Working in an ice cream shop, Lu became friends with fellow student, Masayoshi Son. The two joined forces on Unison World, a software development company that eventually merged with Kyocera. Son went on to head Softbank, now a major investor in UTStarcom.

While UTStarcom sells its network solutions to over 800 cities in China, including large cities like Beijing and Chongqing, Lu is focused on bringing the tools of telecom to other developing regions, including Vietnam, Latin America, and India.

"I selected China first because I didn't think the country’s telecom infrastructure could only go up," he says. "And I really felt like I could use my experience to benefit the country. Now I look at India and believe that this market will only climb upwards as well."

The demand for new technology in developing regions is much broader than telecommunication infrastructure, Lu adds. Innovative and affordable medical devices along with distance-education technology are two examples of industries on the high growth curve, he says. The key to building a successful business half a world away is the entrepreneur’s focus, dedication and commitment.

"You have to be courageous and decisive," he says. "Preparation is important, but determination is even more important." Written by David Pescovitz

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